August 30, 2020

(Jersey City, N.J., Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – On July 16, ISO launched a homeowners insurance endorsement that covers damage to underground utility lines. That’s not always part of a standard homeowners’ insurance policy, and it’s also not always covered by the cities where the lines are installed, so if something happens, homeowners could be on the hook.

The new endorsement for the ISO Homeowners Program can provide coverage for damage to underground pipes, wires, and some buried equipment. The damage could be caused by a variety of happenings, like explosions, tree root growth, and wear and tear.

“Claims arising from buried utilities often come as a surprise because deterioration is hidden until a loss of service occurs,” said Doug Caccese, president of ISO Personal Lines. “Excavating the line, fixing or replacing it, and repairing related damage can cost thousands of dollars. Our new endorsement is the kind of value-added enhancement that many consumers are looking for in today’s competitive homeowners market and that our insurer customers can now offer.”

Policyholders could also obtain coverage for additional living expenses should their homes be uninhabitable. They may also obtain coverage to compensate for a loss of rental income.

But that’s not all. As a complement to the endorsement, ISO introduced associated rules and loss costs. The state-by-state filing process for the new endorsement started in June 2020.

To learn more about ISO’s new homeowners endorsement for underground utility lines, visit https://www.verisk.com/insurance/capabilities/underwriting/personal-property/forms-loss-costs-and-statistical-reporting/.

Source: Verisk Analytics.

https://www.verisk.com/press-releases/2020/july/iso-introduces-optional-endorsement-for-damage-to-underground-utility-lines/