In light of recent customer inquiries about for-profit companies offering proposed water line insurance, Eastern Municipal Water District would like to remind its ratepayers to fully investigate any company that initiates contact with them in regards to this issue.
While some insurance companies may be fully licensed, bonded and reputable, others offer minimal coverage and seek to take advantage of residents, particularly seniors, by using scare tactics in their advertising efforts. Some of these companies offer language in the fine print of their contracts that makes it extremely difficult for homeowners to collect on a claim.
Despite many of the letters attempting to sell such insurance looking like official government-issued correspondence, EMWD has no affiliation with the provider.
In many cases, a broken water line may be covered under a traditional homeowner’s insurance policy. EMWD encourages its ratepayers to read their existing policy to determine if such failures would be covered.
Should a water line break between the street and the meter box, EMWD is the responsible party and in most cases will cover all costs associated with repair.
One of these companies has been aggressive in its marketing campaign in the EMWD service area. It has been investigated by numerous state Attorney General offices and, in at least one instance, was required to offer refunds, letters of clarification and levied civil penalties as part of a settlement with a state Attorney General’s office.
The Central California Better Business Bureau released a consumer alert in 2011 telling consumers to use caution with regards to the mailers that the insurance provider had sent out.
If you have any questions, please contact EMWD at 951-928-3777, or the Better Business Bureau of the Southland at 909-825-7280.