City Eyeing Voluntary Water, Sewer Insurance

Powder Springs residents could soon be receiving offers to join a voluntary insurance program on their personal water and sewer lines.

The policies—provided by Utility Service Partners out of Canonsburg, PA—cost $4.25 a month for water lines and $5.50 for sewer, Michael Madden, a regional account manager, told the City Council at Wednesday’s work session.

“So for about $120 a year, any damage that’s done to those lines … is taken care of for that monthly payment,” he said. 

For 10 percent of the revenue from the policies, the city would sign a marketing agreement with the company, Madden said. This would include the city’s logo on envelopes and letters sent out twice a year—once in the springs and once in the fall.

This “branding exercise” would likely capture more customers than by simply mailing the letters without the city’s logo, Madden said.

The policies would cover water and sewer lines from a house to wherever they hook up to the utility.

“Most of your residents probably aren’t even aware that those are their responsibility,” Madden said, “but any damage, repair or replacement of those lines is their responsibility.”

Coverage would include $4,000 for water lines, $4,500 for water lines under sidewalks, and $8,000 for sewer lines—all with no deductable, he said.

Residents can pay monthly, quarterly or annually. They can cancel at any time and will receive 90 percent of what they’ve paid at a prorated rate, Madden said.

Utility Service Partners, which is sponsored by the National League of Cities, uses the “best” contractors from the community, he said. The contractors are given background checks and are required to respond to Utility Service within one hour of being contacted about a claim.

The policies don’t cover third party claims, such as damage done by contractors or neighbors.

Madden said the company’s claim denial rate is 2 percent. Those denials typically come from people not paying premiums, or requesting a sewer line be fixed when they were only paying for water line insurance, he added.

The company’s claim call center is open at all times, Madden said.

Utility Service Partners is in about 100 communities across the country, Madden said. Within the past 60 days, the company moved into Georgia and is now offering policies in Atlanta, Fairburn, College Park, Union City and others, he added.

There wouldn’t be any added costs to the city, and Utility Service Partners would handle all claims, he said.

The City Council is expected to vote on the agreement at Monday’s 7 p.m. meeting at the building downtown.