Gas line insurance program

[Ron Oakley]

For years, I've been receiving information through the gas company, about gas line replacement insurance. I always shrugged this one off, because it seemed like an unnecessary expense.

However, I was talking with a distant relative the other day, and they mentioned their gas line was being replaced. The gas company had shut off their gas, because there was a leak in the line going to the house. The relative got estimates, ranging from $3,000, upto $5,000, and everything in between. Unfortunately, they didn't have the insurance, and they have to pay out of pocket for this expense.

At $3.75 per month added expense, this seems like a no brainer for my 30 yr. old home.

Question being, does anyone here carry this insurance, and if so, did it ever pay off?

Thanks

[hallerb]

get a estimate on your line, see what it costs.

around here they snake a new plastic line thru the old metal one, about $1500 for replacement.

now think if you had paid that insurance money for the last 30 years:(

you can be insurance poor if you arent careful

[EXT]

What gas line are they insuring. The line from the street main to the meter is usually owned by the gas company -- are they trying to get you to buy insurance on their pipe?

After the meter and through the house, you own the pipe. Unless the pipe is rusting out in the rain or runs through fill under a concrete floor, there is no reason the pipe shouldn't last 50 to 100 years, so why insure it? If you have a gas line buried in or under concrete or rusting in the outdoors, you may want to buy insurance for it. It all depends on your situation, if you have a risk.

[Joe]

Never heard of this gambit, at least not from our utility, NICOR. Their usual practice on a new line is to provide the first 60' free, and bill the customer a nominal sum for the excess. So far as I know, replacement follows the same plan. Wouldn't make insurance much of a bargain in this venue even if offered.

Joe

[Joseph Meehan]

Just remember that this is an INSURANCE, not a warranty. It is underwritten by an insurance company and they are going to make money off of it, in addition the guys who sell it to you (your gas company??) are going to make money from it. I don't see where there is much regulation in this stuff so the profit margins are high. Often this type of insurance nets over 50% of your cost going directly to profit and less than 50% to services.

My suggestion is to read the contract very carefully and only buy it if it makes you feel good enough to justify the cost, but don't expect to get your money back.

BTW I have had gas and water lines go out. The most expensive was $250.00 and the cheapest about $30.00. On was free, I did my own repair of a gas line and that cost me about $20.00 in parts. I could get my money back for the the $30.00 one if I wanted to fill out the paper work.

[alvinamorey]

You can buy insurance for anything and everything these days. Just to prove it, I went to google and did a search for "erection insurance". There were 1660 hits. I guess if you're worried about losing your wife or any other woman, you really should invest in erection insurance.

[Kurt Ullman]

I could see the need for p*rn stars... sorta like AFDICK (g). Back in the days of Indiana Bell, they had (and still do) have Linebacker that would pay for their people to work on inside wiring if you had a problem. Back when it started the service call was something like $50 and I figured as long as I did not have to call them out more than once every ten years, I was money ahead. At the time I (or my family when I was growing up) had had phones for over 40 years with no problems. I figured it was a safe bet. It was.

[Edwin Pawlowski]

I had the phone company out once. When the serviceman tried disconnecting the house from their lines, the connection block broke. He as PO'd that they now used cheap imported junk and replaced it. He then found the problem to be on my side. After fixing that, he was still PO'd about the broken part on their side so he wrote up the entire bill as their fault. NC to me.

After 43 years of home ownership, one service call would still be cheaper than paying $36 a year for insurance. In today's money, I'm about $1500 ahead.

[hallerb]

if you can afford the hit cost of a new line then insurance really isnt necessary.

but again I say get a estimate NOW so you know the expected costs and perhaps begin putting the insurance money away monthly .......

can create a nice savings account that way

[DerbyDad03]

Don't put the money in a savings account...split the funds between stock in the insurance company and the utility. Odds are your ROR will be higher than any bank's interest rates.

The company (EAS) that owns my local utility is up 10.5% YTD.

Financials are down right now, due to the sub-prime mortgage issues, but that just makes it a buying opportunity. Long-term average annual return is well over 10%. Most insurance carriers don't lose money over the long run.

Past performance is not a guarantee of future results. ;-)

[Mark]

Sometimes the line is owned by the utility to the point it connects to the meter or enters the home. Here in Central Ohio that's not the case - the owner is responsible from the street shut-off. In my case I did decide to go for the insurance. I'm pretty sure the gas line is original to home built in 1942 - I know it's been in since before 1977 when I moves in. In my case it can't repaired be 'snaking' new plastic in the old pipe since the line comes up along the side of the home and turns to enter the house. The underground turn would add cost to the repair. So, at $3/mo I'm feeling pretty comfortable with the insurance. I'll pay it for 80+ years before it costs me the $3000+ it would cost to repair the line.

[DerbyDad03]

re: I'll pay it for 80+ years before it costs me the $3000+ it would cost to repair the line.

Yeah, but after that you're just throwing money away.