If a service water line was damaged due to a 'service line failure' and the water caused damage within the home, would I be covered for both?
As long as you have both a homeowners policy and Service Line Protection, it may be handled as a joint loss. Service Line Protection would cover the excavation and repair of the service water line and damaged outdoor property. Your homeowners policy may cover the resultant water damage within the home, subject to any exclusions that may apply.