Neighbors,
We have been asked by Carla Robinson at the York Water District (crobinson@yorkwaterdistrict.
We have been asked by Carla Robinson at the York Water District (crobinson@yorkwaterdistrict.
According to police and the Better Business Bureau, this is not a reputable business.
Seacoast residents are being warned about a mailing sent by HomeServe USA Repair Management Corp., which is a sales pitch for "water service line (insurance) coverage."
On Monday night, Greenland police issued a statement about the mass mailing that warned, "This letter looks official. The company tries to sell insurance for your water pipes. A quick Internet search shows that they have been investigated for deceptive business practices in several states, including Massachusetts, Ohio, and Kentucky. Please pass this information along and inform your elderly relatives and neighbors."
Residents in Portsmouth also received the mailing Monday which states that "Portsmouth homeowners may not be aware that they are responsible for the water service line on their property." The mailing also informs residents that "your water company is responsible" for installing and maintaining water mains up to property boundaries and that homeowners are responsible for plumbing on their own property which could "fail without warning,' requiring "expensive" repairs which "typically" aren't covered by homeowners insurance.
The company then pitches its insurance for that purpose at a cost of $65.88 a year.
In Portsmouth, the "water company" providing water service to residents is the city. Public Works Director Peter Rice said there are companies that provide that type of insurance and he urged residents to make sure that anyone they do business with is endorsed by reputable organizations, that they "read the fine print" and be sure the company has a good track record.
According to the Better Business Bureau, there have been 314 complaints filed against HomeServe, 98 of which were about "advertising sales issues," while the BBB gives the company a rating of A-. Included in the the BBB report is a notation that the state of Massachusetts reached "an assurance of discontinuance" with HomeServe, that was a settlement containing allegations that "HomeServe designed and mailed solicitations and renewal notices to 946,000 National Grid customers in Massachusetts that gave the impression the notices were bills from the utility itself, rather than solicitations for optional repair service contracts."
"The settlement also contained allegations that the solicitations gave false impressions about repair costs, as well as whether the repairs are the responsibility of the utility company, the homeowner, or the homeowner's insurance company," according to the BBB Web site.
HomeServe agreed to pay a $125,000 fine in lieu of a civil penalty and did not admit to any guilt, according to the BBB.
- See more at: http://www.seacoastonline.com/article/20141007/NEWS/141009400#sthash.YQqJz4zV.dpuf
