Nevada consumers have once again been contacting the Better Business Bureau serving Southern Nevada (BBB) regarding mailings from a company called HomeServe USA. The mailings inform recipients that they are responsible for the maintenance and repair of their exterior water lines, leaving them liable for repairs which could potentially cost thousands of dollars. They provide an 800 number and a deadline to enroll in their Water Service Line Coverage. Some consumers have stated the mailings appear to be from a government or county agency.

“I’m always suspicious of these mailings that look like they come from the government,” said a senior consumer from Henderson, NV.  “Looks like they’re preying on my fear of having a pipeline breakdown to try to sell me something.”

The BBB advises consumers to review these notices carefully, particularly the portion that says 'HomeServe is an independent company separate from your local utility or community.' The BBB also notes that while the company is correct when they say homeowners are responsible for the maintenance and repair of their water lines – from the street to their meters – the warranty coverage they offer is optional, not mandatory.

HomeServe USA is headquartered in Stamford Connecticut though the company is licensed to conduct business in Nevada. 

"Similar to any service plan or insurance policy, it is up to the consumer to determine its value and whether or not it's worth purchasing," said Robert Crocket, CEO of BBB serving Southern Nevada. "They should also be clear about what is covered under the policy offered, as well as what is not covered."

The BBB says that while some homeowners may not be covered for the line repairs offered by HomeServe USA, anyone who is uncertain should call his or her water department to avoid paying for duplicate coverage. You should also review your homeowner’s insurance policy to see if coverage is already provided, as well as contact your insurance company to ask how this coverage would work in conjunction with your current policy.

The BBB recommends the following tips to consumers who receive a call or letter from Home Serve USA or similar companies:

• Read the service contract very carefully and make sure you have a clear understanding of it, especially each of the exclusions, before agreeing to buy coverage. Do not purchase any coverage over the phone without seeing a contract with all details that were discussed verbally set down in writing.
• Make sure you're familiar with the company's cancellation policy in case you change your mind after signing up.
• Check the company's Business Review at www.bbb.org to see if there are any unanswered, unresolved or an unusual pattern of complaints that other consumers have noticed.

To file a complaint, contact BBB at 702-320-4500.