MC water customers getting bogus notices
Many City of Morgan City utility customers have received notices from HomeServe regarding water service line coverage.
It is an independent company solicitation and not a recommended service by the city.
In 2009, the Better Business Bureau of Denver issued the following statement on the internet about this service:
“A Florida-based company has been calling and sending letters to Colorado homeowners offering a service plan to cover emergency water line repairs. Your BBB has received many calls about this from homeowners who want the company’s BBB Reliability Report and to know whether or not the solicitation is a scam.
“The name of the company is, Home Service USA and though it isn’t BBB Accredited in Denver, it advertises BBB Accreditation because it is accredited with the BBB in Florida. The company does not have a physical location in Colorado.
“Home Service USA contracts out work for their service plans with local plumbers who they say are licensed, qualified and thoroughly vetted.
“Like with any warranty, service plan, or insurance policy, it is up to you to determine if it’s worth purchasing and how valuable it really is. The two main thoughts to consider are the odds of needing the coverage and how limiting the exclusions may be” says BBB President and CEO Dale Mingilton.
In letters to homeowners, the company states, “you are responsible for the repair and maintenance of your water service line, from the curb or well casing up to your home’s foundation wall.” BBB research shows that this is true locally but may vary in different states.
If you receive a call or letter from this company or others like it, your BBB recommends:
—Read the service contract very carefully and make sure you have a clear understanding of it, especially each of the exclusions before agreeing to purchase. DO NOT purchase over the phone without seeing everything in writing.
—Go over your homeowner’s insurance policy to make sure it doesn’t already provide such coverage. Contact your insurance company and ask how this coverage would work in conjunction with your current policy.
—Make sure the company has a reasonable cancellation policy in case you change your mind soon after signing up.
—Check the company’s BBB Reliability Report to see if it has any unanswered, unresolved or unusual pattern of complaints.
—Try to find out which contractors the company employs and do your own background checking on them.