Underground pipes, cables, tanks and drains (and their inspection covers) are collectively referred to as ‘underground services’. They serve a property by bringing in water, gas and electricity and taking away sewage and waste.

Many property owners aren’t aware that they are liable for the repair costs of electrical lines, sewer piping and other services that run from the street to their property. Yet because the pipes are underground, damage is usually only discovered after they realise that the system isn’t working, by which time the cost of damage can be substantial.

Here, NRLA insurance partners, Hamilton Fraser Total Landlord Insurance, explain everything landlords need to know about protecting their property from damage to underground services - from how to make sure you have comprehensive cover and what’s not covered, to preventing damage, what to do if there’s a problem and who is responsible for repairs.
 

Are you covered for damage to underground services?

Most buildings insurance policies include cover for problems with the underground services the policyholder is legally responsible for, but it’s a good idea to make sure that underground service cover is included in your insurance policy. 

Steve Barnes, Associate Director at Hamilton Fraser Total Landlord Insurance advises:

“Although most insurance policies will provide basic cover for issues with underground services, it’s very important to check the amount you’re insured for and what that cover includes. For example, repairs may be covered, but the costs of tracing the source of the problem may not be included. If this is the case, you might find that you’re responsible for paying the full cost of any investigations that are required. While some leaks are easy to spot, others are harder to detect so this could be expensive - early detection of a leak is key to minimising damage further down the line, and if you are on a water meter and have an undetected leak, you could be paying much more for your water bills than you should be doing.”

Hamilton Fraser Total Landlord Insurance’s Premier policy covers the costs of repairing accidental damage to cables, underground pipes and drains (and their inspection covers) serving the buildings. It also includes cover for the costs of locating the source of escape of water or oil, up to £5,000 for any one building, and up to £25,000 in total during the period of insurance. 
 

How common are claims for damage to underground services?

Claims for underground services are not particularly common, accounting for around three per cent of Hamilton Fraser Total Landlord Insurance’s claims. Year on year claims have shown a general decline in recent years. However, the damage caused can be very disruptive and expensive to repair. In one recent claim, the drains at the insured property had collapsed due to a displacement of the drain, causing water to flow underneath the property and up through the flooring. The entire ground floor flooring was warped as a result. The property had to be stripped out and dried before the flooring, skirtings and wall plaster could be replaced, resulting in a hefty claim payout of £62,000.

What is covered and what is not covered by underground services insurance?

Comprehensive cover will protect you from accidental damage to underground services caused by a range of outside influences, such as intrusion by tree roots, movement of the subsoil or by external means such as unrelated excavation works. But anything that can be seen as natural deterioration or ‘wear and tear’, such as old age or corrosion of a pipe, will not be covered. The same applies to anything resulting from misuse, for example blockages caused by putting wet wipes down the toilet. Pipes that are not the responsibility of the policy holder will also not be covered, even if they are responsible for the problem.

Pipes owned by water companies or neighbours
Water companies repair and clean the pipes that carry wastewater from the street to their treatment works. Insurers won’t cover problems with pipes owned by water companies or neighbours, even if they are responsible for the problem. 

Property owners are responsible for the upkeep and repair of pipes and drains within their homes and connecting to the water company’s sewers. But how do you know where the demarcation is? 

Sometimes a stop tap outside the property indicates the point at which the drains, water pipes and plumbing fixtures on your property become the water company’s responsibility. But there isn’t always a tap and it’s not always clear who is responsible for what. It’s a good idea to contact your local water company to find out if damage to the underground pipes etc. are your responsibility, or whether the repairs fall under their remit.

Drains that connect a neighbour’s drain and the main sewer are the responsibility of the local water supplier.

What are the most common causes of damage to underground services?

By being aware of what is covered and what is not covered, landlords and tenants can both take steps to minimise the risk of damage to underground services and avoid unnecessary expense. Next, we explore some of the most common causes of damage, and what landlords can do to minimise their risks.

Damage caused by blockages:

When a blockage prevents wastewater from being able to flow away, it can come back up through the toilet or sink, flooding your property. Left unchecked, blocked drains are a common cause of flooding that can cause serious damage to property. 

Signs of a blockage include:

• Difficulty flushing the toilet
• The sink or bath emptying more slowly than usual
• Smelly drains

Whether insurance will cover damage caused by a blocked drain depends on the cause. Insurance can cover accidental damage caused by tree roots or subsidence, but it will not cover blockages caused by neglect or misuse. Misuse includes flushing anything other than human waste and toilet paper down the toilet. 

A report from trade body Water UK, revealed that baby wipes made up about 93 per cent of the material that causes sewer blockages in the UK, costing the country £100 million every year. Sanitary protection items are another major cause of blockages. Since these blockages aren’t covered as part of underground services policies, if your tenant has been pouring leftover cooking oil down the sink and flushing baby wipes down the toilet, the damage will not be covered by your insurance policy. It’s important therefore to make sure tenants are aware of their responsibilities and liability. It’s easy to avoid blockages, so long as anything other than human waste and toilet tissue is put in the bin instead of being flushed away, and fat, oil and food scraps are binned and not put down the sink.

Signs that a blockage is the property owner’s responsibility:

• An absence of flooding in the local area
• Only one property experiencing problems
• The property doesn’t share a drain with any other properties
• If the upstairs facilities are affected but downstairs is working this suggests an internal blockage
• If the drain is clear upon inspection by lifting the manhole cover outside the property, it usually means the blockage is within the property

Signs that the blockage may be the responsibility of the water company:

• The problem is outside the property boundary
• More than one property is experiencing problems

Damage that occurs gradually over time

Sometimes damage to underground services happens gradually over time and at other times it is due to a single, unforeseen event. When damage happens gradually over time, it is known as ‘gradually operating causes’ and is generally included in the policy exclusions, meaning that it is not covered. Damage caused by an external and visible means from a single identifiable event, such as accidentally bursting a drain pipe whilst using a garden fork could be covered, whereas damage caused to drains, for example from corrosion over time most likely will not.  In the event of a claim, the insurer will need to weigh up all the evidence and consider whether the damage was caused gradually and whether the insured would have been aware of the damage, or whether it was caused by a particular event. Expert reports and photos are important sources of evidence in this scenario.

Lack of maintenance or wear and tear

Like damage that occurs gradually over time, damage caused by wear and tear and old age – anything that can be seen as natural deterioration - does not fall under the ‘accidental damage’ umbrella and is therefore not covered by insurance. This should be clearly indicated in the policy exclusions. Underground services inevitably suffer quite a bit of wear and tear over time, as corrosion occurs and little leaks form. 

Regular inspections and cleaning are the best way to keep pipes and drains in good condition and reduce the risk of premature collapse or corrosion caused by wear and tear.
 

How can landlords prevent damage to underground services?

Since insurance won’t cover damage to underground services caused by natural deterioration, neglect or misuse, it’s important that landlords and tenants are proactive and diligent about preventing damage. 

1.    Carry out regular maintenance 

Landlords should arrange for an annual clean out and inspection of drains and pipes by a professional company. In this way, any solid matter that has started to accumulate can be removed before it blocks the drain. Clogged or completely blocked pipes can damage the drainage system and this can be very expensive to repair, so it is worth making the effort to keep your drains clear. Early spring is a good time to do this as leaves and other debris that have accumulated over the winter months can be removed. It’s also a good idea to clear the gutters in late autumn, when the majority of leaves have been shed but before it gets so cold that water is starting to freeze in the gutters, causing them to pull away from the building or bursting the pipes. It’s sensible to check for any blockages or damage to drains and pipes during periodic inspections. This is also an opportunity to remove any tree roots that may be growing near a drain.

2.    Make sure tenants are aware of their responsibilities for underground services

It’s really important that tenants are aware of their responsibilities too. You can include details in the tenancy agreement but should also explain what tenants need to do when they move in. 

It’s a good idea to provide tenants with a drain guard for the kitchen and bathroom plugholes and advise them not to pour food scraps, cooking grease or coffee grounds down the sink

Guidance for tenants: 

• Never flush anything other than human waste and tissue paper down the toilet. Nappies, wipes and sanitary products should be disposed of in the rubbish bin
• Collect cooking grease in a container and dispose of it in the rubbish bin
• Coffee grounds can be put in the bin or added to the compost
• Use a drain guard to prevent hair and soap scum from clogging up the pipes in the shower / bath and dispose of any hair or scum in the bin

3.    Ask tenants to report any problems promptly

Spotting problems early and taking prompt action is key to preventing further damage to pipes and drains. When tenants move into the property, explain to them what to look out for and encourage them to report any problems they notice to you as soon as possible. Tenants should not attempt to carry out any remedial work themselves. This could invalidate your cover or make the damage worse.

The Financial Ombudsman Service reports that most cases of damage they see are to water pipes, but occasionally they also see cases about gas or oil pipes.

What tenants should look out for:

• Brown stains on the walls or ceilings which might reveal hidden leaks or moisture
• Discoloured water could be a sign of rust or corroded pipes
• Unpleasant odours coming from drains can be a sign of a blockage due to food debris stuck in the pipes
• Slow drainage due to water having to filter around a blockage creating a sluggish flow
• Raised water levels or an overflowing toilet are a sure sign of a blockage
• Gurgling sounds could indicate trapped air in the drain

What to do if there is a problem with your underground services

If you or your tenants spot a problem connected with the underground services, your next steps will depend on the nature of the problem:

• Do not try to unblock drains or a toilet yourself as this could make the damage worse
• You may need to turn the water off at the mains and ensure that the tenants do not use any of the fixtures feeding the drains
• If the problem is with a drain, call a drain specialist to inspect the damage
• If the property has suffered water ingress from the drains or from toilets backing up, then you should appoint companies to both pump out the water and sanitise the property
• If there is damage to electrics appoint an electrician to have them made safe
• Take time-stamped photos if it is safe to do so
• Contact your insurers to notify them of the situation and begin the claim process. They will advise you on the next steps to take
• If you or your tenants smell gas or suspect a gas leak at your property, then call the National Gas Emergency Helpline immediately on 0800 111 999

Regular maintenance and ongoing diligence by both landlords and tenants will help extend the life of the underground services which serve your property by delaying wear and tear and preventing any damage from escalating, resulting in costly repairs. But no matter how well prepared you are, the unexpected can still happen, so it’s important to make sure you are adequately insured for the costs of repairing any accidental damage to underground pipes and drains serving the property.

NRLA landlord insurance partner, Hamilton Fraser Total Landlord Insurance, has a dedicated in-house claims team of expert advisers who are on hand to help you should the worst happen.

Your insurance will not cover you for damage caused by blockages or wear and tear of underground services so you and the tenant must be diligent.