Home Service Water Line Insurance???

[Golf-Tinker]

We just received a notice from something called "HomeServe." It purports to offer us insurance for $ 4.99 per month against repairs of an exterior broken water line to our property. Any one else signed for this or is this another scam?

[jimbo2012]

scam, IMO, when did you ever hear of the water line failing 1 in a million

[rjm1cc]

i would pass but if you think you need this type of coverage (plus your sewer line) then I would call your utility company and see if they offer it. My guess is they, or a subsidiary, does as it should be a big profit maker.

[Bill-n-Brillo]

I'd suspect the coverage is legit but the likelihood of having such a problem is fairly slim.

There have been some instances of broken water lines in TV, jimbo, but the ones I've read about have been water mains, not the individual line to a house:

Water boil notice issued for The Villages residents in Marion, Sumter - Orlando Sentinel (http://articles.orlandosentinel.com/2011-01-05/news/os-lk-villages-boil-water-notice-20110105_1_water-notice-sumter-residents)

Boil Water Alerts Issued In The Villages, Port Orange - Orlando News Story - WESH Orlando (http://www.wesh.com/r/30629481/detail.html)

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/water-main-leaks-36114/

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/fyi-lake-miona-rec-center-closed-36039/

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/boil-water-alert-el-cameno-real-area-31465/

Bill :)

[buggyone]

I have never heard of such a service.

As for a problem with the water pipe from the main into the house, it does happen. Last summer, I had a high water bill from Villages Utilities. I called them and said I could not have used that much water. They sent out two guys who pulled up the slab over the water meter. The little triangle marker was going around indicating water was going through the meter - and all my water was off in the house.

Luckily for me, the leak was in a PVC 1/2" pipe right at the meter and was spurting through at a pretty good speed. One of the guys called a buddy who came out in an hour and replaced a couple feet of pipe. Cost me $60 for the repair but a lot better than a high water bill for a few months.

If the PVC pipe had broke elsewhere, it would have been hard to find. I would actually consider such an insurance - if it had references to back it up from local people.

[Pookirgirl]

I received the same letter yesterday. I immediately called VCDD and they assured me that our homes are covered for leaks from the meter to the street. If there is any damage from the meter into our homes...it is your responsibility. A new home is covered under your Home Owner's warranty for 2 years. They also said there is very little chance of this actually occurring. I then called my home owner's insurance and they reiterated what VCDD said. IF it were to occur...the damage would probably be between $200-$500. We have a $500 deductible....so....the decision is yours to make.

[Tweety Bird]

Yes, we also received an insurance offer for this "need". It is either a scam, or it's just another way to alarm people of unforeseen things happening. I tore it up and continued with my life.

[Bryan]

The "official" name of the company is HomeServe USA Corp and they are not an insurance company! They are a home warranty repair and service coordinator. The BBB currently rates them as a "D" with 159 recorded complaints in the past 36 months. The company has been investigated by several state attorney general offices. As a result, the company has entered into an Assurance of Voluntary Compliance with the State of Kentucky (02/26/10), the State of Ohio (04/15/10) and the State of Massachusetts (11/21/11). Probably not your best choice of companies to be doing business with.

[billethkid]

I am looking for the folks who bought the insurance as I am contemplating starting a new insurance franchise. Our product will be to insure the hole in the ground that holds your front lamp post. :)

btk

[buggyone]

You do have to do research on any home improvement or warranty company like Bryan says. The $5 per month does not sound like a lot ($60 per year) but will the company be around and will they do the repair?

My house is 9 years old and obviously went for 9 years without a problem in the water line from the meter to the house. Like another poster said, the line from the water main to the meter is covered by VCDD but from the meter to the house is the homeowner responsibility. Hopefully, mine will go at least 9 more years before another problem.