One Million Homeowners to Suffer Water Service Line Emergencies in 2012

Americans could be responsible for $2 Billion in repair costs

Mar 28, 2012, 13:44 ET from HomeServe USA

STAMFORD, Conn., March 28, 2012 /PRNewswire/ -- A national estimate of the cost of emergency water service line repairs released today by HomeServe USA, a premier provider of emergency repair service plans, anticipates one million water service line emergencies are likely to occur in the United States in 2012, at a total cost that could exceed $2,000,000,000 to homeowners nationwide. (1)

The pipe that delivers fresh water from the water main in the street to a home can break or leak due to normal wear and tear. In most cases, repairs are not covered by basic homeowners insurance, the water utility, or individual towns and communities, leaving the homeowner responsible for finding a licensed plumber, arranging service, and paying for repairs on their own. Repairs such as this can range between $1,500 and $3,000, and in some cases more.

"These kinds of emergencies happen more often than people think," says Tom Rusin, Chief Executive Officer of HomeServe USA. "We're talking about American homeowners collectively bearing a two billion dollar liability. This leaves a lot of people in a precarious spot," noted Rusin. "That's why it is so important for homeowners to educate themselves about their responsibility and do something about it."

HomeServe USA, with more than 1 million customers nationwide, will be offering its Water Service Line Coverage plan through a direct mail offer to customers across the country. This optional service plan provides eligible homeowners with protection against the cost of covered water service line repairs. It also provides customers access to a 24-hour emergency repair hotline, and all repairs are performed by local, licensed and insured technicians. HomeServe USA has a 96 percent approval rating among customers surveyed after receiving service under the plans. (2)

"You can't prevent a water service line emergency," concludes Rusin. "But you can be aware and prepared. We hope homeowners will take notice and take action to protect themselves and their property."

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(1) HomeServe 2011 national leak repair experience and U.S. Census American Housing Survey for the United States: 2009, estimated number of detached and attached single family homes.

(2) HomeServe 2011 Post Service Customer Survey