Residents of this Chicago suburb are fed up following 6 water main breaks this year and threat to their homes. Who pays when infrastructure fails?

In all, 1,000 people — and 50 homes — were affected in the most recent break, Village President Fitzgerald Roberts told ABC 7 Chicago. The community had to declare a boil-water advisory (1).

“You never know when it’s going to happen,” one resident told NBC News (2). “It doesn’t just happen in the wintertime. It’s happened in the summertime as well. This is not good for anyone.”

The problem is not new. Two winters ago, Dixmoor declared a state of emergency following water main breaks. At the time, Roberts told WGN News it could cost upwards of $50 million to repair the 100-year-old pipes (3).

Illinois’ Environmental Protection Agency and other governmental bodies have provided funding to Dixmoor’s village association to address the issue, but it’s not enough to cover the full cost of repairs.

Whether you’re a resident or business owner, here’s what you need to know about who’s responsible for damages and losses when municipal infrastructure fails.

Who pays when infrastructure is damaged?

A report from the National League of Cities suggests that every time infrastructure fails, Americans pay for fixes, one way or another (4).

The organization estimates that households are paying $3,300 per year in this ‘hidden’ tax (3).

But local and state governments are struggling to keep up with infrastructure needs, whether it’s repairs or new construction.

According to Pew research, municipal and state governments spend $500 billion a year on roads and water infrastructure. Of that, $125 billion comes from the federal government.

But estimates peg infrastructure needs as roughly double that current spend — requiring a $1-trillion investment (5).

While some municipalities download the cost of infrastructure upgrades onto taxpayers, a more immediate concern remains: Who pays when a city-level infrastructure failure damages your home?

Unfortunately, the homeowner is usually responsible for the cost of damage from a water main break, as insurance companies don’t typically cover such flooding under a base policy (6).

Municipalities’ liability only extends to repairs on their own infrastructure.

This can leave homeowners on the hook for hundreds of thousands of dollars in repairs.

Case in point? In 2019, a water main break in Park City, Utah caused a sinkhole outside a home, leaving the home two feet deep in water.

In spite of appeals, the homeowner was ultimately responsible for the heavy bills (7).

What can be covered after water-main damage

A 2018 study from Utah State University found that the frequency of water main breaks across the U.S. and Canada increased 27% between 2012 and 2018 (8).

As aging infrastructure makes problems like this more common, citizens must advocate for preventative maintenance in their neighborhoods.