What is Service Line Coverage or Lateral Lines Coverage?

blades of grass close up
Service Line Coverage (Lateral Lines Coverage)

Your home insurance policy doesn't cover utility lines running under your yard.

If you are digging a hole too deep in the wrong place, or just get an unlucky pipe break from a water main in the front yard, your home insurance won't cover it - unless you purchase service line coverage (lateral lines coverage).

Homeowners might try to blame the utility company for this type of damage, but the truth is, it is not their responsibility. In America, we are lucky enough to own our property and land, but that also means property owners are responsible for damages that occur on their land. If the utility line breaks on your property, it is your responsibility to repair. Here is an example of how a major US city treats a water line break:

lot line cutoff for utility line ownershipSource: City of Cleveland

A water line break can run anywhere from $2k - $15k, so it's best to get the service line coverage add-on for your homeowners policy if it is available. At only ~$25/year for $10,000 in coverage, it's kind of a no brainer. Service line coverage will include coverage for:

  • Water Lines
  • Power Lines
  • Sewer Lines
  • Electrical Wiring
  • Gas Lines
  • Internet/Phone Communication Lines

Keep in mind it will only cover service lines that are underground. Lines running overhead from a telephone pole are the responsibility of the power company. 

At your service,
Young Alfred