What to Know About Utility Line Warranties

Ohio utility consumers may receive offers trying to sell utility line warranties for repairs to water, sewer, electric, gas and/or telephone lines. Some may use the utility’s name and logo or come with the utility bill. The Office of the Ohio Consumers’ Counsel (OCC) offers information to consider when deciding whether to purchase a utility line warranty.

What are utility line warranties?

Utility line warranties are designed to cover all or part of the cost of repairs to utility lines that run to or inside a home that are the customer’s responsibility. Utility companies often partner with third-party companies to sell and administer utility line warranties.

It may be unclear who is responsible for utility lines. Generally, utilities are responsible for the lines outside the home. Property owners are typically responsible for lines from the meter that lead inside their house. Check with the utility to know where their responsibility ends and where the homeowner’s begins. The best time to do this is before a repair is needed.

What do utility line warranties cost and are they worth it?

Costs for utility line warranty plans vary. They can cost just a few dollars per month, but can also cost much more, depending on the type and the number of plans a consumer chooses. The monthly fee generally covers applicable repairs or replacements up to a maximum amount, which also varies by company. Some plans also have deductibles that must be paid by the homeowner toward each repair.

Utility line repairs are not common. Utility line warranty advertisements claim that repairs can cost thousands of dollars. However, many needed repairs tend to be much less, sometimes less than $500.

Additional things to consider before signing up for a utility line warranty plan:

• Renters are not typically responsible for utility lines. 
• Many homeowners may never need to replace or have repairs made to a utility line. 
• Depending on the material used, water lines typically last 40-80 years, and copper-plated wiring, copper-clad aluminum, and bare copper wiring electric lines are expected to last a lifetime. Gas lines typically last 30-75 years. Telephone line problems typically only occur every 20-30 years.
• Consumers living in neighborhoods more than 40 years old where pipes and lines are still original and some properties have needed replacements may want to consider purchasing a plan.
• Also, consumers may want to consider a utility line warranty if the home is older, has aging utility lines, or the property has trees near underground pipes and wires since roots could damage them.

Before purchasing a utility line warranty, check with the homeowner’s insurance provider. Utility lines may be covered, or the coverage may be available as a rider on the policy for less than the warranty cost.

Also, if repairs are needed, paying out of pocket may often be less costly than a warranty over time.

What is and isn’t covered?

Electric, Natural Gas, and Water

Utility line warranties may provide partial or full payment for repairs to electric, natural gas, or water lines. These plans have an additional fee that may be billed separately and/or added to the monthly utility bill. Many plans cover problems such as leaks in natural gas and water lines, aging electric lines that could cause problems inside the home and the lines (except gas) that travel from the curb to the home.

Telephone

Many local telephone companies offer inside-wiring maintenance plans. Some include a replacement telephone or telephone jacks.

Many utility line warranties will not cover repairs to pre-existing conditions in the line and have provisions to inspect the insured line within a few months of the plan's start date. Find out what is covered and how a condition is determined to be pre-existing before spending money.

Some plans limit the amount paid towards repairs or replacement and some limit the number of times the plan can be used.

Where to find more information

For more information on available warranty plans, customers may contact their local utility company.

Before signing up for a utility line warranty plan, consumers should research the company and its offers and find out if there are complaints filed with the Better Business Bureau at www.bbb.org.