Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Letter: Sewer insurance a good deal, for insurers
First Published Apr 29 2014 05:02 pm • Last Updated Apr 29 2014 05:02 pm

The Salt Lake City Department of Public Utilities recently mailed me an offer to buy insurance against sewer line repairs. For $83.88 per year, HomeServe promises to pay up to $10,000 if the sewer line from my house to the city’s line needs repairs.

Salt Lake City provides water and sewer service (in Salt Lake City and some adjacent parts of the county) to 67,000 homes. It issues sewer repair permits to about 300 of these per year. If all 67,000 signed up for the insurance their total premiums would be $5.6 million per year. HomeServe reports that its typical cost to replace a sewer line is $3,697. Paying that much for 300 sewers annually would cost them $1.1 million per year, 20 percent of its premium income. You can see why that insurance is profitable for HomeServe.

Join the Discussion
Post a Comment

To learn more about HomeServe, look at the May 2012 issue of Consumer Reports.

Noel de Nevers

Salt Lake City




Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.