Water line insurance: Is it necessary? - AmericaNowNews.com

Is water line insurance necessary?

Consumer advocates are warning against an advertisement letter sent out by an insurance company based in Stamford, Connecticut.

Coastal Carolina Better Business bureau CEO and President Kathy Graham says the company, Home Serve USA, offers supplemental insurance for homeowners' water pipes.

Graham says many consumers saw the advertisements and thought they were from the City of Myrtle Beach or the state because of a South Carolina logo in the top corner of the page.

"It can look very official, and that can be misleading," Graham says.

Myrtle Beach Public Works Water Supervisor Bobby Knight says the letters are not affiliated with the city.

Knight also says most customers likely do not even need the insurance.

"The likelihood of needing their [Home Serve USA] services is slim. I personally wouldn't recommend purchasing it," Knight says.

Graham says the Attorneys General of Ohio and Kentucky filed actions against Home Serve USA in 2010 for questionable advertising practices.

She says Home Serve USA settled both actions.

"They say they're certified with the Better Business Bureau, that's not true.  It's very important, before you invest, investigate the company," Graham says.

Copyright 2012 America Now. All rights reserved.

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