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Normally, having insurance is a plus, but sometimes it’s a rip-off.
Dennis Hammontree, owner of Northeast’s H&H Plumbing, is warning residents to use caution when approached about water service line coverage.
Hammontree recently received a mailed brochure from HomeServe Water Service Line Coverage, which boasts $6,000 in annual coverage for only $4.99 per month, or $59.88 per year.
HomeServe says the insurance will “help protect your finances from the costs associated with repairs or replacement of a leaking or broken exterior service water line on your property.”
Those paying for HomeServe’s water service line coverage can receive a maximum of two service calls per year and up to $3,000 per “covered event.”
However, the insurance comes with multiple exclusions and Hammontree said the insurance may be unnecessary.
Residents with copper lines don’t need the insurance, Hammontree said. Copper lines don’t get clogged or rust and should last “100 years and then some,” he said.
“It would almost have to be some kind of physical damage to hurt it,” he said. “The fact that they (HomeServe) don’t give a disclaimer about people who already have copper services is what makes me think they’ll take advantage of people who have copper and don’t know it.”
HomeServe also emphasizes repairing leaking water lines and that’s unwise, Hammontree said.
Galvanized lines deteriorate over time, can develop multiple leaks and become clogged, he said.
“If it’s bad enough to leak in one spot, it’s probably getting thin in other spots,” Hammontree said of the galvanized lines. “You replace it (water line) one time and you’re done. You don’t repair it over and over, especially not twice a year.”
With HomeServe, a local contractor can locate, excavate and repair the leak for $492 or replace a segment of pipe for $2,385. The charge to members is zero.
Installing a new water line usually costs between $1,900 and $2,600, Hammontree said.
Hammontree urged residents to use caution about water line insurance.
“If people buy it, they need to know what they’re buying and know what the coverage really is,” he said.
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