Public works ‘skeptical’ of insurance offer

Public works received an email Feb. 21 from the company informing it of their upcoming mailing.

“As you may know, most homeowners are not aware that they may be responsible for the water and sewer lines running through their property,” the email read, “American Water Resources will soon send a letter to The Dalles residents informing them of their service line maintenance responsibilities.”

The four-page mailing is primarily an advertisement for AWR’s services and includes an immediate action form to sign up for a water line protection program.

The mailing also contains some information about a homeowner’s repair responsibility to stress a need for their protection service, including bullet points such as: “A water line problem could prevent you from being able to shower, wash your hands or use the toilet” and “Without protection, you may be at risk for expensive water line repairs” costing thousands of dollars “since typically homeowners’ insurance policies do not cover these repairs.”

The mailing also answers several frequently asked questions about water service lines, service line protection and AWR’s enrollment program.

“The city does not endorse or promote the purchase of this type of insurance,” said Jill Hoyenga, public works regulatory compliance manager.

While Hoyenga confirmed that homeowners are responsible for plumbing, water and sewer line repairs on the customer side of the meter, she said that companies such as AWR’s don’t typically cover common repairs like frozen and broken pipes.

AWR does cover broken pipes, AWR public relations director David Saba said.

Public works is responsible for repairs to the water system on the city’s side of the meter as well as water shut-offs, but Hoyenga recommends that homeowners invest in a hand-valve as an easier and faster alternative to the city’s shutoff service.

Upon reaching out to Oregon Insurance Division to check AWR’s credentials, Hoyenga was told that the company is not registered to do business in Oregon under their promotional name and may be operating under an underwriter license.

However, the Chronicle’s contact with the Oregon Insurance Division and the Oregon Secretary of State Corporation Division confirmed that AWR does have an active business license in Oregon.

“AWR currently has 1,723 customers in Oregon and six customers in The Dalles,” Saba said.

While the mailing is for water line protection only, AWR also markets sewer line, in-home plumbing and interior electric protection to Oregon homeowners, he said.

Hoyenga encourages residents who receive these letters to contact their insurance agents to check if their home insurance covers water and sewer line repairs; and urges those considering an agreement to get a full copy of both the agreement and exclusion statement, ask questions, thoroughly research the company and contact the Oregon Insurance Division before signing.

More information on American Water Resources can be found at www.awrusa.com and The Dalles Public Works Department can be called at 541-296-5401, or visit their website at ci.the-dalles.or.us/public_works.htm.