SGI Canada announces changes to service line coverage

SGI Canada, the P&C division of Saskatchewan’s Crown-owned insurance corporation, has announced changes to its service line coverage that will take effect in the coming year.

According to a note on the company’s website, these changes pertain to coverage that helps maintain service lines that link homes to external utility lines, such as water and sewer pipes, propane or natural gas lines, and electrical and data lines.

Citing information from its partner HSB Canada, SGI said coverage for service lines aged 50 years or older will be reduced from $10,000 to $2,500 per damaged line beginning in 2024. 

This coverage adjustment may impact homeowners with service line coverage on older properties, whether through SGI Canada or another insurance provider, the announcement added, as it highlighted the following coverage details for its customers:  

• Claim Limit: If multiple service lines on a property are damaged in a single incident, homeowners can file a claim for a total amount of up to $10,000, with a limit of $2,500 for each service line that has not been replaced in 50 years or more.
• Age of Service Lines: The coverage limit is determined by the age of the service line, not the age of the home. If a service line on the property has been installed or replaced within the past 50 years, it may still be covered up to the original $10,000 limit.

SGI Canada has been providing service line coverage on behalf of HSB Canada. The change will be implemented upon the renewal of home insurance policies in the upcoming year or later for properties that have yet to reach the 50-year-old threshold.

Last August, SGI Canada released its 2022-23 annual report, which revealed that it had been unable to provide dividends to the Saskatchewan government for the first time in 12 years due to the challenges brought by severe weather. 

What are your thoughts on this story? Feel free to comment below.