June 12, 2022
By: Dwayne Page
City of Smithville residents will soon be getting a notice in the mail of an insurance program being offered to guard them against costly water leaks.
In March, the aldermen voted to enter into a contract with Water Leak Relief, LLC of Crossville.
For a monthly fee of $1.65 to residential customers, the Water Leak Relief program will help City of Smithville water customers pay for the high bills incurred when water leaks occur from the meter to the home on their property up $1,500 per occurrence. Only two claims are allowed within a 12-month period. The fee is included as a part of customers’ monthly bill. Those who don’t want to participate may opt out. Customers who opt out won’t be assessed the monthly fee on their water bill but also won’t be entitled to an adjustment in their water bill should they have a leak. The monthly fees will be assessed for coverage to begin in June.
“They (water customers) get two claims per year up to $1,500 each time,” said Water Leak Relief spokesperson Casey York. “If you have a water leak (meter to the house) inside the house, if a pipe bursts inside your house, it covers that. If your toilet is leaking, it covers that, but it’s got to be a leak. You can’t fill up your pool. That doesn’t count because that is not a leak. If it’s a leak, we cover the cost of the high-water bill. We don’t cover repairs. This also counts on sewer. For your customers who have sewer that price ($1.65 per month) is for both (water and sewer). If your average water bill is $50 and your average sewer bill is $50 you just pay the $1.65 per month and it covers the high-water bill on both of those. They (customers) pay their average bill. If over 12 months your average bill is $50 and you have a leak causing your water and sewer bill to be high, we cover everything twice a year up to $1,500 for each claim,” York said.
The protection program also provides coverage for commercial single occupancy customers ($4.21 per month) and commercial multi-occupancy customers ($7.70 per month) under the same terms and conditions as residential customers. Relief is also available to residential and commercial customers for water and sewer line repairs on their property up to a $10,000 limit per year. Added monthly fees for this coverage is $4.65 for residential water line and $6.45 for residential sewer line relief. The added monthly costs for commercial single occupancy customers would be $13.45 for each water and sewer line relief and $26.96 for commercial multi-occupancy customers for each water and sewer line relief.
“We also offer water line and sewer line relief,” York continued. “All your customers are opted into the water line relief, but they can out opt of that at any moment. They will get a letter 30 days before it goes on their first bill, and they can opt out and back in at any time. The water line and sewer line relief cover your repairs, commercial or not. It’s a main water line repair up to $10,000 once a year. For residents the monthly fee is $4.65 or $13.45 for commercial customers but it’s worth it especially if you have ever had to dig up concrete to repair a line because it’s very expensive,” added York.
The basic protection for residential customers who pay the extra $1.65 per month on their water bill will cover excess water charges resulting from a plumbing leak including interior frozen water line/plumbing, for which the customer has sole responsibility, that supports their residence or business.
In order for a customer to qualify, the leak must meet the city’s current leak policy, occur on the customer’s side of the meter, must be accidental in nature, must be repaired within a period of 10 days from discovery with proof of repair to the city.
To be eligible to receive a benefit, the customer’s water bill must be for an amount that is 200% or greater than the customer’s average monthly water bill as defined in the terms and conditions. Normal monthly water bill means the average dollar amount of the 12 previous months’ bills. A customer may only receive two benefit claims during any 12-month period. Benefit claims will be made for up to two months for a single leak occurrence.
If a customer was notified by the city of a leak and did not make the needed repairs within 10 days, no benefit claim would be granted.
Water Leak Relief, through an insurance policy with Plateau Casualty Insurance Company of Crossville, will take the amount of a customer’s current water bill with the leak and subtract the average of the last 12 water bills. The city will be paid the difference up to the benefit limit of $1,500.
For example, if the customer’s water bill with the leak is $1,000 and the average water bills for the last 12 months is $50, the customer would pay the city $50, and Water Leak Relief would pay the city $950. Any charges above the $1,500 limit would be the customer’s responsibility.
The program does not cover the following:
*Any cost associated with repairing the customer’s water service line
*Customers with multiple living units on a single meter such as a campground, trailer park, motel, etc. are not eligible for a benefit claim, except as included in multiple occupancy commercial service customers.
*Routine dripping faucets
*Premises left vacant or abandoned without reasonable care for the plumbing system
*More than two occurrences per 12-month period
*Filling of swimming pools
*Watering of lawns or gardens
*If a customer becomes aware of a potential problem with the plumbing which could cause a leak and that problem is not resolved by turning off water flow to the leak source within five days.
*If a customer has been notified of a suspected leak and does not repair the leak within 10 days of becoming aware
*Faulty water meter
*Improper meter reading
*Natural acts or disasters
*Pressure washing or other external cleaning products
*Sprinkler system leaks
*New construction buildings that are unoccupied.