Insurance Question, Water and Sewage Lines

[mso489]

My local natural gas utility keeps offering me insurance on my water and sewer lines. The cost is modest, ten bucks monthly for water line and fifteen for both water and sewer. My home is 57 years old. They offer to make it part of the gas bill, and their role as a public utility makes it seem like it would be legitimate.

My uncertainty is that I have heard of water and sewage lines needing to be replaced, but as near as I can tell it is rare. Two residences in the family were/are over 100 years old, and neither ever required replacement of these. I have never had a friend, acquaintance, colleague or community member known to me to need this, nor have I read letters to the editor bemoaning this.

Is this insurance a bit like insuring against rhinoceros damage? Is it getting a lot of people to insure against a remote possibility? Or is this a practical and responsible option?

I keep getting mailings encouraging me to sign up for this. What is your take? What is your experience. It also worries me that the natural gas people are offering this. Could it be that they do some of the damage to residential lines in installing or repairing gas lines and are trying to deflect their liability? Am I buying insurance that they should be carrying?

 

[fireground_piper]

That seems a bit odd on the surface. If repair work for the covered pipes fall on the utility company, I'm not sure why you'd need the coverage. Likewise, if the repair work would fall under your responsibility, I don't know why it wouldn't be part of your larger home insurance policy vs. with a utility company that is not going to do the repair.

I have a private well so none of this applies to me, but those are my questions.

 

[Pipeoff]

Sounds like a job from your local utility company provider. Reminds me of the Medicare adv. ripoff. Save your money!

 

[mso489]

Good questions. The material sent out with the water/sewer line insurance application said that these are not covered under regular homeowner's insurance. I do not know if that is true, or true only in my state, or what. But that is the claim. I have received three or four solicitations for this coverage.

 

[cosmicfolklore]

This is the first I have heard of insurance on these, But, if offered, I’d take it. The water company here is owned by the city, and is why we don’t have a city property tax. However, I am told that everything from the manhole to my house is my responsibility, and our sewer runs under a creek, which is a protected waterway. A neighbor pointed out a few years ago that our sewer line is exposed by erosion. It’s just PVC, and when the creek is roaring, rocks are tumbled down the bed over it. I asked the city what needs to be done, but all I got was that it is my responsibility, BUT its a protected waterway. Officially, I am not allowed to do anything. But, a plumber told me that I should go out when the creek is dry and pour concrete over it, which is technically illegal. The plumber refused to do it. So, I have just haven’t done anything. Buy, I’ve also been told that if the line broke, and sewage spilled into the creek, I am liable for the spill financially for damage to the environment. It’s a Catch22.
I would buy insurance in a heartbeat. I may call and ask of they have anything like insurance available. I just don’t feel like pouring concrete into a creek bead in the dead of night is very smart.

 

[Briar Lee]

My local natural gas utility keeps offering me insurance on my water and sewer lines. The cost is modest, ten bucks monthly for water line and fifteen for both water and sewer. My home is 57 years old. They offer to make it part of the gas bill, and their role as a public utility makes it seem like it would be legitimate.

My uncertainty is that I have heard of water and sewage lines needing to be replaced, but as near as I can tell it is rare. Two residences in the family were/are over 100 years old, and neither ever required replacement of these. I have never had a friend, acquaintance, colleague or community member known to me to need this, nor have I read letters to the editor bemoaning this.

Is this insurance a bit like insuring against rhinoceros damage? Is it getting a lot of people to insure against a remote possibility? Or is this a practical and responsible option?

I keep getting mailings encouraging me to sign up for this. What is your take? What is your experience. It also worries me that the natural gas people are offering this. Could it be that they do some of the damage to residential lines in installing or repairing gas lines and are trying to deflect their liability? Am I buying insurance that they should be carrying?

The utility makes repairs to the mains, on the street. You are on the hook to your residence.

A few years ago my sewer system backed up. The main on the street was clear.

One of my son’s friends with a back hoe gave me great relief when he found and repaired the stoppage only a few feet from the main and placed a clean out.

Cost was about $500. I can stand that, without worry.

But it’s a lot more if they need to dig up the entire line.

 

[HawkeyeLinus]

Ours does the same and there are private outfits into that market as well. Typically your private lines are your responsibility, as you know, and the most likely issue would be freezing causing cracking or bursting or breaking at the connection to a main, next would be possible tree root invasion. Normally unlikely, but the older the lines (or less diligently put in even if relatively new) they can settle or heave and so forth. Normally if they are just nailed by some contractor they get fixed by whomever was responsible - I'm sure there are exceptions to that.

I guess just a matter of reading the fine print and what they actually cover. I'm sure they make money based on the overall unlikelihood of issues - but if cost of replacement is a concern then it's just another personal risk analysis in terms of the cost.

 

[scloyd]

I added a $5000 water/sewer plan to my homeowners policy for only a couple of dollars a month. We live in a 100+ year old house. My friend/neighbor across the street had to replace his water main from the city line to his home (15? years ago).

Another neighbor two doors down had to have his sewer line repaired.

The city is only responsible for their lines.

Our local gas company offers the same service as your, but at a higher cost than my homeowners insurance.

 

[scloyd]

I added a $5000 water/sewer plan to my homeowners policy for only a couple of dollars a month. We live in a 100+ year old house. My friend/neighbor across the street had to replace his water main from the city line to his home (15? years ago).

Another neighbor two doors down had to have his sewer line repaired.

The city is only responsible for their lines.

Our local gas company offers the same service as your, but at a higher cost than my homeowners insurance.

I checked my homeowners policy.

I have $10,000 "buried utility lines" cover age for $80 a year...just under $7 a month. It's worth it.

 

[kcghost]

If your water company is offering the coverage, it is a good bet that this occurs rarely.

 

[Pipeoff]

Home owner insurance sounds great until you make claim, be aware that multiple claims (3) in a ten year period is placed on what they call a credit history but is in reality is a black ball inter agency report system that can cause cancellation or non renewal. Mortgagees require insurance so now you must shop for another company that probably will refuse based on thier opinion that you are high risk. Payed one highly rated without claims for 20 yrs. My policy had no such warning when I made a claim that was denied based on a 56 page policy written in
Lawyer language. My only relief was a small claims court judgement in my favor and negative BBB detailed that must cost them as much Budlite

 

[warren]

The lines for which you responsibility are under your property. My suggestion is that repair costs should come from the two or three months of funds you have banked or squirreled away for emergencies. Or, if one can't seem to save for emergencies, insurance is another way to go. Then there is the second or, third mortgage. A personal loan to cover such emergencies. All sorts of options out there. Don't forget the favorite of many, simply refuse to believe emergencies or accidents will occur and have no plans for such eventualities.

 

[anotherbob]

Good questions. The material sent out with the water/sewer line insurance application said that these are not covered under regular homeowner's insurance. I do not know if that is true, or true only in my state, or what. But that is the claim. I have received three or four solicitations for this coverage.

what are they covering precisely. What will they be on the hook for? And how much is it going to cost you (mainly in money but other ways too) if you have to deal with it on your own. What's the actual risk? Some insurances are good because you'll have to deal with the issue at some point and some are good because if you have to deal with the issue it can be a real burden. And a lot of insurance is a scam to get money out of people without really providing insurance. By the way I have alien attack insurance. What's it cover funeral expenses for loved ones (helps that they alien use high tech weapons which saves on cremations) and we'll give you special weapons that won't help but you can't put a price on piece of mind). Only 10 dollars a month except in UFO season then it's 1000 dollars a day.

 

[anotherbob]

The lines for which you responsibility are under your property. My suggestion is that repair costs should come from the two or three months of funds you have banked or squirreled away for emergencies. Or, if one can't seem to save for emergencies, insurance is another way to go. Then there is the second or, third mortgage. A personal loan to cover such emergencies. All sorts of options out there. Don't forget the favorite of many, simply refuse to believe emergencies or accidents will occur and have no plans for such eventualities.

you can always ignore problems. Excessive alcohol consumption can give you a lot of practice for that eventuality. Or youth, youth is great for thinking problems don't happen to you.

 

[stevecourtright]

Sounds like you need to talk with your home insurance agent to determine what they cover and also, you should consult the city statues for what is the responsibility of the city when a like breaks or the like. It's different everywhere. For example, I am responsible for sewer lines all the way out to the street. Some places that is not the case...

 

[mso489]

Good thoughts, experience, and some pretty good jive here. I'm open to more responses, and I may launch the same inquiry with the utilities commission and my homeowner insurance people.

In the old days, I could have talked to the newspaper, but I think they have a newsroom of about three people and may not be up on many community concerns.

Since this is the gas company (Dominion Energy) I'm sure they have a rational sounding explanation, but I'd like to hear a disinterested review. Self-insurance (savings) is one way to go, but does take a hit if you have other unexpected expenses.

I kept expecting this to get discussed in some public forum, but it hasn't happened yet, or I'm not aware of it. As mentioned, I never heard of this as a "thing" in years growing up or since. At first, it just sounded like a scam.

 

[brooklynpipeclub]

Speaking from experience, it is worth paying the small monthly cost for the sewer line insurance. I had a sewer pipe collapse a few years ago which resulted in a horrible flood in my basement. You can imagine the waste that backed up into my house. If it wasn't for the insurance coverage, the cost to repair, which involved digging a roughly 10'x10'x10' hole in the middle of my street would have been an out of pocket expense totaling upwards of $14K. I know this because a friend of mine who is also a homeowner in Brooklyn paid this much when the same thing happened to them and they had no coverage.

 

[warren]

As I started to type this we experienced a small tremor which, though small, could affect my septic and/or well. I live on the side of a mountain and have no municipal water or sewer. The gas line to the meter is the responsibility of the utility. The electric? That is the responsibility of the co-op. So, water and sewage are entirely my responsibility. I have insurance for fire and such. Earthquake coverage is expensive, at a cost. I chose to let you folks and your various taxes cover any loss through low-cost Federal bailouts which always follow a catastrophe.

So, I thank you folks for your assistance should I require it. While I'm at it, thanks to all of you, employed paying taxes, for your continued Social Security payments.

 

[mwsmoker]

We had to repair a sewer line at a modern house we owned. The line didn’t have enough slope, and as the ground settled, landscape grew, etc, it started backing up. We had to have a paver patio pulled up, ground trenched, line relocated with better slope, etc. We paid the bill. No coverage from HO insurance. About $4k.

At my in-laws place, which we own, the very old original clay sewer pipe (house is over 100 years old) was stopped up and jammed with root growth over the decades. We had to replace the entire line. Just under $10k.

Things happen, and it’s rarely cheap. Not sure I would buy insurance for it, but depends on how badly a $5k-10k emergency would harm you financially.

 

[captpat]

IME these sorts of issues are fairly rare, the relatively low cost of coverage confirms that. If it were me I’d put the money in an interest bearing account, call it a rainy day fund for future unexpected home repairs. Let the money work for you instead of the utility company. OTOH if I were in a situation as described by @cosmicfolklore I’d buy the insurance.