Sewer program seeks to fill gap [The Hawk Eye, Burlington, Iowa] - Insurance News | InsuranceNewsNet

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May 27, 2010 Newswires
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Sewer program seeks to fill gap [The Hawk Eye, Burlington, Iowa]

May 27--For more than a decade, Burlington officials have debated offering financial assistance to residents facing costly sewer lateral repairs.

Earlier this year, the debate ended with approval of a partnership between the city and American Water Resources to provide a voluntary sewer and water line protection program to homeowners.

"The city is our partner in this, but customers contract directly with us," said Amy Marks-Bash, senior manager of market development for AWR. "We feel this program is a good fit for Burlington."

The Burlington City Council decided to proceed with the warranty program based on the results of a 2009 survey mailed to about 4,000 homeowners.

Of 1,201 surveys answered, 707 or 59 percent indicated interest in the program. A total of 259 or 22 percent had no interest, and 235 or 19 percent were unsure.

Last week, letters were mailed to homeowners notifying them of the program's availability, which sparked confusion on the part of some who contacted The Hawk Eye.

First, Marks-Bash said she wanted to dispel the notion that the line protection program was insurance.

She said AWR is not an insurer, rather the 125-year-old New Jersey-based company offers service warranties to homeowners for sewer, water and in-house plumbing repairs.

"Homeowners often don't realize they are responsible for the sewer and waterlines that run from the exterior of the home to the municipal service lines in the street," Marks-Bash said. "It's a substantial cost that isn't covered by the homeowner's insurance."

Former Burlington City Councilman Tim Scott, who championed financial aid for sewer lateral repairs while on the council, indicated sewer lateral repairs typically cost $3,000 to $10,000. The price jumps significantly based on the location of the break and type of backfill used, an official said.

Scott said Wednesday he is reserving judgment about the warranty program pending further review. He added: "If it covers what it should, this is a good deal."

Marks-Bash said the sewer line program covers repairs to the sewer lateral up to $10,000 caused by clogs and blockages in the homeowner's right-of-way.

The sewer lateral is the part of the sewer system that runs from the foundation of a house to the sewer-main, which usually is under the street.

The warranty is $9 monthly, and homeowners can opt out at any time with no penalty, Marks-Bash added.

"A break in a sewer line is not covered. If there's tree root invasion or it collapses due to a clog or a block, then it's covered. Normal wear and tear is also covered," Marks-Bash said. "We cover 99 percent of issues."

Under the warranty, the street and sidewalk in the city's right of way will be restored at no cost to the homeowners.

On private property, general restoration such as in-fill, raking and reseeding is covered. However, restoration of private driveways and sidewalks is not.

Homeowners who suspect a sewer lateral issue must first contact the city to assess the situation, according to Marks-Bash.

If the damage meets warranty criteria, homeowners contact AWR to dispatch a local contractor.

The company offers a warranty to cover waterline leaks and breaks on private property at a rate up to $8,000 for $5 a month. The program operates similar to the sewer line plan.

Homeowners also can opt for both sewer and water line coverage for up to $18,000 in repairs for $12 monthly.

An earlier plan sponsored by Scott would have provided homeowners who have a sewer pipe burst on the city's right of way up to $3,500 toward the cost of flowable mortar. City workers also would be required to complete street repairs.

To fund the program, the city would tack on an additional 50 cents to monthly residential water bills, which would generate about $60,000 annually. The legality of that funding mechanism was called into question.

For further information about the line protection program, interested homeowners can go to the city's website at www.burlingtoniowa.org and click on the lifesaver link.

To see more of The Hawk Eye or to subscribe to the newspaper, go to http://www.thehawkeye.com/.

Copyright (c) 2010, The Hawk Eye, Burlington, Iowa

Distributed by McClatchy-Tribune Information Services.

For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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