Water Supply Pipe Insurance: Proceed with Caution
Posted on January 8, 2015 by Janice Thompson
Tags, Water/Wastewater
I got a call the other day about a topic that may be of interest to some of our readers. The caller was a new homeowner who was getting mailings pushing the purchase of water service line insurance. The water service line is the pipe that brings water to your house from the meter and there are companies that sell insurance targeting just these pipes.
The mailings were from legitimate companies, but caution is prudent.
The Portland Water Bureau (PWB) has blogged on this topic, most recently at the end of December 2014. Their key points include:
- The water pipe from the meter to the house is the property owner’s responsibility.
- There is no connection between these private insurance companies and the Portland Water Bureau.
- Purchasing water supply line insurance is not required.
The PWB also encourages customers to do the following before signing up for a new water service line insurance policy:
- Find out if there have been prior problems with the water supply line to your home or to other homes in your neighborhood.
- Take a look at more than one private insurance offering to compare costs and extent of coverage.
- Read the fine print – evidently some of these policies are written with so many exemptions that it’s hard to tell what would be covered.
- Check your homeowner’s insurance policy and talk with your agent to determine what your current insurance would cover.
When talking to your insurance agent, they should be able to:
- Explain their company’s interpretation of the “sudden and accidental loss” concept and provide some examples of situations that would be covered - or not covered - by your current homeowner’s policy. This will give you a general sense of how they operate.
- Explain what would be covered under your homeowner’s policy if the water service pipe breaks due to a digging or some other type of accident.
- Explain what would be covered under your homeowner’s policy if the water service pipe breaks due to flooding or other acts of nature.
- Explain what would be covered under your homeowner’s policy if the water service pipe breaks because it is old or due to normal wear and tear.
- Explain whether you homeowner’s policy includes a water and sewer break endorsement rider. If yes, would that cover a break in your water service pipe? If not, how would getting such a rider compare to getting a separate policy just to cover water service line problems?
Every situation is different, but reading the tips from the Portland Water Bureau and asking your insurance agent the questions listed above should help you evaluate your options. Please call or email with follow-up questions, or to share your experiences that might be helpful to others. I can be reached at 503-277-1984 x24 or at .(JavaScript must be enabled to view this email address).
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04/24/17 | 0 Comments | Water Supply Pipe Insurance: Proceed with Caution