VA - American Water Insurance: Sign up or not? (Woodbridge: houses, income)

[rj11]

Recently moved to Woodbridge. I keep getting letters from American Water alarming me of the risks in damage to my water and sewer lines on my property

The letters state that the water and sewer lines on my property are my financial responsibility. The letter goes on in saying that normal wear and tear can cause a leak or break clog or blockage which can cost thousands of dollars to repair.

For $12/month. $144/yr I will be insured for claims up to $15,000.
Has any one signed up to it or has a knowledgeable understanding of the benefits of paying into it?

Our 4,000 SF home was built in 2002 by the Hylton group.

[HokieFan]

Originally Posted by rj11

The letters state that the water and sewer lines on my property are my financial responsibility. The letter goes on in saying that normal wear and tear can cause a leak or break clog or blockage which can cost thousands of dollars to repair.

I believe it's beneficial to have insurance on some things - health, life, home, auto. Insurance companies play off of people's fear of what "might happen". Well, anything is possible but is it likely to happen? I wouldn't waste my on this insurance.

[rj11]

Originally Posted by HokieFan

I believe it's beneficial to have insurance on some things - health, life, home, auto. Insurance companies play off of people's fear of what "might happen". Well, anything is possible but is it likely to happen? I wouldn't waste my on this insurance.

Thank you for your post. I tend to agree. The results of the poll will be interesting. I meant to add a third option "Not Sure" but can no longer edit it, it seems?

[johnsonkk]

Not likely is a good rational. Most of the letters try to invoke fear for those on fixed income. The fact that these companies are making significant profits shows that there isn't that many payouts to their insured customers. These offerings are also additional revenue by the water companies so they are vested in those customers that sign up for these. The small print provides lots of holes for them to deny coverage even when a pipe ruptures between the meter and your house.

[boyd888]

I'd consider it junk mail and just toss it out. It's fear mongering meant to get you to spend money on something incredibly unlikely to happen. Just like home improvement people being like if you don't upgrade your xxxx then xxxx can happen and cause lots of damage. Far more likely you have a sewer or water issue inside your home.

$144 for $15K in coverage means they sure aren't paying out on too many policies either.

[ChristineVA]

I toss it. I think it's way to expensive for how rarely it occurs.

That said, it did happen to my neighbor 3 houses down this year. It cost her $8,000 to fix it. A sewer line in her yard cracked and separate. It wasn't pretty.

[car54]

Sewer/water lines can get expensive quick. I might do it if I knew I had orangeburg pipe in the ground...that stuff is guaranteed to fail at a certain age. I wonder what the fine print says about how long the policy must be in effect before a claim can be made? They have to have some way to keep people from taking out a policy for an existing problem.

I had a 50's era sewer line fail a few years ago and got some crazy high bids to replace it. My house sits a far distance off the road and obviously the longer the line the more it costs. My solution, I bought a used backhoe and did it myself. My wife said, "You've been wanting a backhoe for years and you finally have an excuse.". She knows me (and my love for machinery) well! LOL