NOT A SCAM! Homeowners Receiving Letters Offering Optional Utility Line Service Protection

Letter provides optional service line repair coverage;

City officials say plan provides protection for unexpected and costly repairs

RAPID CITY, SD--Many city residents are receiving letters again this month regarding an optional customer exterior service line protection plan offered to homeowners.

            In August 2018, the City partnered with Service Line Warranties of America (SLWA) to offer the optional coverage.  This is the third round of correspondence to Rapid City residents by SLWA.  Residents receive an introductory letter about the protection plan and then a reminder correspondence in a couple weeks. The City has authorized SLWA to utilize the City's name and logo on all SLWA marketing and mailing materials, including correspondence.

            With its membership in the National League of Cities, Rapid City is able to offer the service line protection plan, which is administered by SLWA and offers important coverage for interior plumbing and drainage systems, exterior sewer/septic lines and exterior water service lines.

            To date, 1,100 Rapid City homeowners have enrolled in the water service line protection plan and 1,072 have signed up for the sewer service line protection plan.

            City Public Works Director Dale Tech advises homeowners the postal material they receive is legitimate.  There is no cost to the City in offering the voluntary coverage plan to homeowners and is being offered because of the City's membership in the National League of Cities.

            "Homeowners are often surprised to learn they are responsible for service line repairs, which can be an unexpected and costly expense," Tech said.  "Damage to pipes on homeowners' property are not covered by basic homeowners insurance or by the City."

            The protection plan offers up to $8,500 per service call for covered water service line repairs and covered sewer/septic line repairs. The letter explains the coverage, provides examples of the plan's coverage, important questions and answers, an acceptance form and contact information to SLWA, which works with local contractors for repairs.

            "Repairs can run in the several thousands of dollars," Tech said.  "These plans provide an affordable solution for repairs.  It works with local, licensed contractors for the repairs.  The City incurs no expense related to this program.  The plans are voluntary and homeowners can select partial or the entire coverage."

            The Service Line Warranties of America service plans include:

            *Exterior Water Service Line coverage-$6.89/month;

            *Exterior Sewer/Septic Line coverage-$7.91/month

            *There is a first year savings of 10 percent off when selecting both plans

            Coverage begins 30 days after acceptance by SLWA.  Plans do not cover pre-existing conditions.

            Homeowners work with SLWA on claims through a 24-hour hotline. SLWA will dispatch a local, licensed contractor to work with homeowners.  There are no service fees or deductibles and SLWA, not the City, manages the billing and claims process.

            SLWA was founded in 2003 and has partnered with more than 400 cities and municipalities to provide repair service plans.  The National League of Cities recognizes SLWA as the nation's largest and most trusted source of utility line plans and offers the coverage plan to its members.

            Tech says the City's role as a partner in the program is to grant SLWA the right to offer and market optional service line warranties to residential single dwelling property owners within city limits. 

-30-

Thank you,

Darrell W. Shoemaker | Communications Coordinator

T: 605.721.6686 | M: 605.939.8551

E: This email address is being protected from spambots. You need JavaScript enabled to view it.

W: www.rcgov.org

This email address is being protected from spambots. You need JavaScript enabled to view it." width="359" height="80" />