Received a mailing from our local water company today urging me to
purchase water line repair insurance from them for $60 a year.
This would cover the cost of repairs (up to $4,000 per incident) to
the water line which is on my property up to the street side valve on
my water meter, which is inside my house. Pipe that's on the street
side of the parkway is on City property and isn't covered by the
insurance, but would be repaired by the water company. I know this
because last year there was a problem with my Buffalo box that was
repaired without cost by the water company.
Insurance includes replacement of pipe, filling in any excavation,
restoring surface to original condition, and replacing sidewalk if
it's necessary to remove or damage sidewalk.
It covers "normal wear and tear and leakage" but just about nothing
else. Doesn't cover damage by me or by third parties or from natural
causes like earthquakes, tornados, and floods, or any damage to added
piping such as to an underground sprinkler system.
I've only been a homeowner for about 6 years, but it doesn't seem to
me that water pipe damage like that covered by this insurance is very
common. The houses surrounding mine were all built about the same time
and, at least for the time we've lived here, I've never known anyone
to suffer water pipe damage covered by this insurance.
My inclination is to pass but I'd like to hear opinions from more
experienced home owners. Any comment will be appreciated.