Abbeville citizens receive letters offering water line insurance plans

Letters offering insurance plans for exterior water lines have reportedly been received by several Vermilion Parish residents during the last two years.
Dale Stelly, system manager with Water District No. 1, said earlier this year that many of the letters, originating from a company called HomeServe USA Repair Management Corp., went to several residents in his water district.
Abbeville residents are now receiving the letters.
Abbeville Councilman Brady Broussard Jr., said multiple constituents contacted him recently in regards to receiving the letters that claim their water lines are not covered against potential damage.
“I was contacted by several constituents in my district that were alarmed and concerned over this letter that told them they needed to purchase water line insurance,” Broussard said. “They had never seen a letter, brochure or request for payment like this.
“I explained to them that this is a clear solicitation and was not mailed from any department in the City of Abbeville.”
One of Broussard’s constituents received the letter from HomeServe USA Repair Management Corp., based in Norwalk, Conn. The letter, obtained by the Abbeville Meridional, offers the customer the option of purchasing a monthly insurance policy for $5.49 per month, $ 16.47 per quarter or $65.88 per year that offers a $6,000 annual benefit or $3,000 per call for two calls a year. The letter comes with an acceptance form and payment options. The letter also offers more information at www.LAwaterservice.com, which brings the customer to a HomeServe USA website.
A portion of the letter reads: “Your property (located on Jefferson Street) has appeared in a review of our records for Abbeville and we have found that your exterior water line is not covered with Water Service Line Coverage from us.
The water service line buried underground on your property could fail without warning, leaving you responsible for the cost of repair. Repair or replacement of this line can be expensive — costing you thousands of dollars in unforeseen expenses — which could burden finances in these difficult economic times.”
A representative with HomeServe told the Meridional earlier this year that the company serves roughly 4,000 homeowners in Louisiana, totaling around 7,500 service plans. That is part of more than 1.5 million customers who hold more than 2.3 service plans across the continental United States, and Alberta, Canada, according to the company. The company is accredited with the Better Business Bureau and currently holds an A-minus rating.
Stelly said, while it is not a scam, the coverage is not something the customer will likely need.
Broussard said he agrees with that assessment, adding his concern is the possibility of someone who is on a fixed income making a purchase that is simply not needed.
“Each homeowner has to choose what is best for their home,” Broussard said, “but in this case I can tell you I am certainly not purchasing the coverage this letter claims to provide.”