Homeowner’s insurance companies have been developing new endorsements that home insurance clients may wish to add to their policy. One popular option now offered by several insurance companies is service/lateral line coverage. So, what is a lateral line you ask? These are underground service pipes or wiring that connect your private property with a publicly owned sewer or utility line. These include water or sewer pipes, cable or internet, electrical power, natural gas, and drainage pipes.
How Does Lateral Line Coverage Protect You?
In the event of a direct physical loss to these exterior lines on your property, the company will pay up to a certain dollar limit generally ranging between $2500-$10,000 (age of home may limit available coverage) for the repair, excavation, restoration costs caused by: normal wear and tear, rust or deterioration, hidden or latent defect, freezing, plant root invasion, vermin or animals, and collapse (excluding earthquake, landslide, or sinkhole).
How Much Does it Cost a Year?
Premiums range between carriers, but they generally range between $30-60 a year. Not all carriers offer this coverage yet. Please contact us to discuss your individual situation, and we will be happy to review this along with all of your coverages.