Letters regarding exterior water line breakage, the cost associated with that, and offering protection has been received by residents in the city of McMinnville in the last week and is causing concern.
Two of the correspondences were dropped off at the Southern Standard office Friday. They are from HomeServe USA Repair Management Corp., also called HomeServe, out of Memphis.
One was addressed to Ray Basham and begins “This letter is to inform you that the original water service line buried underground on your property was installed before 1945. If you have not replaced this line, it may be at risk for age-related leaks or ruptures” and that his property is not covered with “Exterior Water Service Line Coverage from us.”
The return addressed concerned Basham.
“On the back of the envelope it says send the check to Memphis, Tenn., so I figured the older people need to be aware of that. A lot of them would just write a check and send it,” said Basham. “Why would you send a check to Memphis, Tenn., to protect the water pipes in McMinnville?”
The letter continued, “The water service line buried underground on your property could fail without warning, leaving you responsible for the cost of repair. Repair or replacement of this line can be expensive – costing you thousands of dollars in unforeseen expenses – which could burden finances.”
A friend of Basham’s, who is also a city resident, received one and took it to McMinnville Water Department.
“She said they told her it’s not them because they don’t send out letters like that,” Basham said.
McMinnville Water Department director Paul Williamson says the company is not affiliated with the city in any way.
“It’s a new concept that companies have been trying to push on us for a while,” said Williamson. “I haven’t heard of HomeServe but I have heard of two or three others. The city has nothing to do with any of them. The first company came through about three years ago. The last one was six or seven months ago. Now, I guess this one.”
The insurance offers to cover water line breaks that occur on the water service line which is located between the house and property’s boundary.
“A typical leak could run you somewhere between $600 and $700,” said Williamson. However, he urges homeowners to check the companies out before making a decision on purchasing protection. “The best thing to do would be to Google the company. All I can tell you is they have nothing to do with us.”
Property owners should also contact their insurance companies to see if they are already covered for a lateral damage incident, or if they feel such coverage is warranted.