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Water & Sewer line insurance

10:45 AM 02/01/2013

 

housepoor

I just received a letter from the DEP about water and sewer line insurance provided by American Water Resources (AWR) and billed directly to the quarterly water & sewer bill. At first i though this was a skam, although if it is, it is a very good one. The cost for both water and sewer lines is $11.98 per month, although it goes up $1 per month after June. it covers, so it appears, the connections outside of my house but that I am still responsible for (although has a long list of "what repairs are not covered"). Has anyone else gotten this letter? What do you think? What has it cost to replace or repair those lines when something breaks? Thanks for your input.

 

 

Sewer
Plumbers and Plumbing
Waste Management
13 answers
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  • vote

    bobmarvin

    Prospect Lefferts Gardens, NY

    I have no information about this insurance, but I VERY strongly doubt that DEP, or any City agency would endorse any specific company which, I think, would be in violation of Chapter 68 of the City Charter, so the letter might well have been deceptive (or fraudulent if they actually spoofed DEP letterhead). That being said repairs to water mains and sewer lines cost thousands of dollars, so the insurance MIGHT be worthwhile IF you can determine that American Water Resources is a bona fide company offering real, usable, insurance.

    12:52 PM 02/01/2013 | -1 Votes

     

     

  • vote

    bklnite

    Flatbush, NY

    I thought it was a scam too, but then found this DEP press realease...
    http://www.nyc.gov/html/dep/ht...
    Still, I personally would pass.

    1:18 PM 02/01/2013 | 0 Votes

     

     

  • vote

    argylerd

    Depending on the age of you watermain an sewer it may be worthwhile considering the high cost of repair or replacement..  Here is the link for the fine print as to what is covered http://www.awrusa.com/american...
    I'll look over the details, probably call them with questions and give it consideration.

    1:44 PM 02/01/2013 | 0 Votes

     

     

    Comments (1)

    • bobmarvin

      Prospect Lefferts Gardens, NY

      That press release is amazing. I always suspected that the current City administration had lower ethical standards than the four previous administrations. Listing ALL companies providing a service would be fine; publicizing ONE sure looks like a conflict to this retired City manager.The insurance might well be worthwhile but IMO DEP shouldn't be publicizing a specific company.

      2:51 PM 02/01/2013

          

  • vote

    kidbklyn

    Brooklyn, NY

    I went to the DEP website and the offer looks legitimate. With service lines coming into my house from a main that runs across the opposite side of the street, I'd be facing extemely costly repairs in fixing any of those problems. It's something to think about.

    1:57 PM 02/01/2013 | 1 Votes

     

     

  • vote

    elbow

    Interesting. If you read on the service does seem to have been competively solicited:

    To help property owners better manage these risks and the high costs of service line breaks, the New York City Water Board issued a Request for Proposals from qualified providers for service line protection programs in 2012. After a thorough review, AWR was awarded a contract to administer the service line protection programs for roughly 670,000 eligible properties in New York City.

    5:53 PM 02/01/2013 | 0 Votes

     

     

    Comments (1)

    • bobmarvin

      Prospect Lefferts Gardens, NY

      Then I guess it's legal; ethical? I'm not so sure.

      6:10 PM 02/01/2013

          

  • vote

    bobmarvin

    Prospect Lefferts Gardens, NY

    Whatever I might think about whether it's ethical for the City to single out a specific insurance company, the insurance actually does seem worthwhile. I'll look into enrolling.

    11:44 PM 02/01/2013 | 0 Votes

     

     

  • vote

    cmu

    Guess I don't understand exclusions. The following 2 seem like they make the policy useless?
    [NOT covered] Repairing anything caused by You or any third parties
    LOL. Doesn't this pretty much negate any coverage?

    [NOT covered] Excavating Your Home's Foundation or slab in order to access any section of Your Water Line.
    And since this would seem pretty mandatory to change/repair the lines, wouldn't you always wind up paying?

    10:25 AM 02/04/2013 | 1 Votes

     

     

  • vote

    arkady

    Park Slope, NY

    From what I've seen done elsewhere, a lot of the work is not on foundation nor slab - it's usually in the front area or pavement.  You or a third party are also not likely to cause the damage unless a tree's roots are considered a 3rd party.

    3:34 PM 02/06/2013 | 0 Votes

     

     

  • vote

    bklynjim

    Carroll Gardens, NY

    I just signed up for this.  Several of my neighbors have paid 15K - 20K for new sewer lines.  $12 a month for insurance is a bargain.   

    4:52 PM 02/06/2013 | 0 Votes

     

     

    Comments (1)

    • deancollins

      Brooklyn, NY

      let us know how much of the $15k they cover once you make a claim......you might be looking at it very differently once they explain the fine print to you.

      9:45 PM 02/27/2013

          

  • vote

    brooklyn_bs

    In Ditmas Park where I have been since 1994, I have only heard of two sewer or water line replacements in the area—that's in 18 years.
    One was due to the whole house burning down (sewer was clogged with ash and debris),
    the second was when a neighbor swapped-out the existing lead pipes for pvc.

    This insurance offer from AWR is totally optional. Your sewer line may crack and break in a 50-year period, it may not.

    I'm surprised to hear of the necessity for so many new sewer lines (bklynjim, CARROL GARDENS), unless there was new construction, street repairs?

    11:19 AM 02/07/2013 | 0 Votes

     

     

  • vote

    karinamadison

    We were going to sign up, but after reading this forum and talking to a couple of other homeowners, I feel like I need to talk to the DEP before I do.  There seem to be way too many exceptions re: coverage.  I also found this article quite interesting:
    http://watchdognation.com/who-...
    To date, the only "official" nyc information I've been able to locate is a press release from the company touting the importance of NYC's DEP selection of them as the "insurer of choice" for water/sewer lines for "shareholder value"!

    4:12 PM 02/23/2013 | 0 Votes

     

     

  • vote

    nobikesonfance

    Greenpoint, NY

    I signed up for this a year ago and with the rain today we had a sewer backup problem.
    I called and they said they don't cover any issues due to rain or flooding in the sewer.
    This is starting to seem like a scam. 

    10:19 AM 05/08/2013 | 0 Votes

     

     

  • vote

    jarnow4

    Brooklyn, NY

    I have paid for water line breaks in a house in flatbush and Park Slope.  It was a lot of money in both cases, so I think this insurance sounds definitely worth it, unless you've had recent fixes on both lines.  I would think the insurance is for a line break and replacement -- having a sewer backup is a different issue unless it is combined with a break in the line.  In any case, the insurance probably doesnt cover clean-up. 

    10:58 AM 05/17/2013 | 0 Votes

     

     

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