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City Utilities offers coverage protection on water, electric systems but do you need it?

By Elizabeth VanMetre
July 12, 2022

SPRINGFIELD, Mo. (KY3) - HomeServe has started offering exterior electrical and water system protection coverage through City Utilities, and according to local insurance companies, it might be something to consider.

It covers electrical and water lines from the road to your home, something City Utilities doesn’t cover. If repairs are needed from weather or wear and tear, it could cost you thousands.

"It’s basically like an insurance extended warranty policy that some insurance companies may not cover on your homeowner’s insurance," said Joel Alexander with City Utilities.

The added cost is $4.49 a month for each line. That’s $53.88 a year.

Damage to those lines doesn’t happen often, but can and it’s not typically covered under your basic homeowner’s insurance plan.

"It’s not automatically under your homeowner’s policy unless you add the endorsement," said Jess Bowman, owner of Bowman Insurance Group. "Pretty much every homeowner’s insurance carrier offers that endorsement nowadays."

Bowman said it might be worth asking your current agent about because you might get a better deal through them. She said some policies range between $30 to $50 dollars a year and offer more than just electrical and water coverage.

"It varies by carrier," Bowman added. "But most of the time that endorsement is going to your underground plumbing, sewer, some even your sprinkler lines."

It can mean more coverage for less money. Bowman said the coverage offered through HomeServe might be a better deal for some homes though. Most companies won’t offer as much coverage for homes more than 50-years-old. $5,000 annually for covered repairs in a home older than 50 might be a better deal.