Thurmont board considering endorsing private insurance partnership

Oct. 01--THURMONT -- Thurmont's mayor and some commissioners were leaning on Tuesday toward endorsing a private insurance company that provides homeowner protection for water, sewer and in-home plumbing repairs that could cost thousands of dollars.

Utility Service Partners Inc., of Canonsburg, Pennsylvania, is a private company that works with municipalities to offer optional insurance for service lines.

Thurmont noticed the company at a Maryland Municipal League meeting and became interested because it is endorsed by the National League of Cities, said Ashley Shiwarski, an indoor sales manager for Utility Service Partners. She pitched her company's products to the commissioners on Tuesday.

"This is something I personally would like to see," said Commissioner Wes Hamrick.

Some of the commissioners said they have faced several thousand dollars in repairs on their property or family's property, and it was not covered by homeowner's insurance. Commissioner Bill Buehrer said he paid $5,500 out of pocket for a repair that was 3 feet away from being the town's responsibility.

Homeowners are responsible for water and sewer lines from their homes to where they branch off the municipal lines. Homeowners are also responsible for the pipes in their walls, which homeowner insurance often does not cover. This insurance program seeks to bridge that gap.

Utility Service Partners uses local licensed contractors and plumbers for repairs, Shiwarski said.

"We want to keep as much money here within your local economy as possible," she said.

The service is optional, but the company cannot operate in the area without the municipality's partnership. The town's endorsement does not cost the town government anything, and Utility Service Partners will pay the town 50 cents for every active contract in the town each month.

The town's endorsement, which deals with homeowners' rights to choose a service that helps protect them financially, was vocally opposed by two of three residents in the audience at the meeting. Viktor Kraenbring and James Wilkins said it was inappropriate for the board to listen to a solicitation and give its blessing for a program that deals with a homeowner's responsibility.

"It seems to me your solicitation should be with the public and the town," Wilkins said to Shiwarski. "My feeling is solicitation should not be with the governing body that's sitting up there."

The endorsement would put the mayor and commissioners in the middle of a deal between a company and a homeowner, Wilkins said.

Commissioner Martin Burns justified hearing the pitch because of the town's affiliation to the Maryland Municipal League and endorsement by the National League of Cities. He said no one in the town would be locked into using this company.

"There are two different thoughts, heavy on both sides of the political spectrum, on whether the government should be overtly involved in the private affairs [of homeowners]," Burns said.

The town already has similar affiliations that benefit residents, such as a franchise agreement for cable TV service, Burns said.

He said the town would listen to other pitches, too.

The endorsement commits the town to approving three mailings from the company each year, Shiwarski said. The mailings detail each of the insurance services the company offers and notifies residents that they have the option to opt into a policy, she said.

Utility Service Partners offers three separate services:

-- External water line, $5.75 per month.

-- External sewer line, $7.75 per month.

-- In-home plumbing, $9.99 per month.

"You could blow that on soda, right," Burns said. "That is very reasonable in my opinion to cover, or give peace of mind, to someone who bought a home."

The coverage covers up to $4,000 worth of repairs per service line claim with no cap on the number of claims per year, Shiwarski said. There are no service fees for calling with a problem, deductible or charge if the problem ends up being on the municipal end of the lines, she said.

Utility Service Partners was endorsed by the National League of Cities in 2010 and has been in business for 15 years. The company works in 35 states, she said. It has agreements with seven Maryland municipalities; none are in Frederick County.

"It seemed like a good idea, because it impacts all our residents," Mayor John Kinnaird said. "... If we can offer you a mechanism to get you to repair your line when it gets damaged easier, it's more agreeable to you and it serves the community in general."

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