Beware of utility insurance salesmen


The American Society of Civil Engineers recently scored the U.S. water infrastructure a grade of D-, noting that many water mains are beyond their useful life. Research from the American Water Works Association backs this, noting that "the replacement era has arrived."

Water main breaks are a daily occurrence across the U.S., and it is likely that the water service lines connecting these aging mains to households are at risk of failing as well, according to HomeServe USA, a company that claims to work with water, gas, and electrical utilities to offer customer service plans.

HomeServe urges utilities to talk with their customers to address the aging water infrastructure and how it could impact them.

"Until faced with an emergency repair, many homeowners are unaware of their responsibilities and what is needed," said Tom Rusin, CEO of HomeServe.

But officials are saying, "not so fast."

The attorney general in three states -- Massachusetts, Kentucky and Ohio -- have investigated HomeServe and are advising customers to steer clear of this company, noting that HomeServe provides insurance that customers do not need and that the company's advertising is misleading. The Better Business Bureau has had hundreds of complaints filed against HomeServe.

For more:
- see this article
- see this report