Do you need insurance coverage for your water and sewer lines? All over southern Colorado, consumers have been receiving letters urging them to purchase insurance coverage for the water and sewer lines that service their homes. Your BBB has received hundreds of phone calls about these letters. People like you want to know if they need to purchase this insurance.

The BBB can’t answer that question for you. We can encourage you to take the following steps: First, contact your homeowner’s insurance company. You may already be covered, and if you are not there may be a rider available with the insurance you already carry. Second, assess whether or not your property is at risk. Is your house older? Have your neighbors experienced problems with their water or sewer service lines? Third, read the fine print before you buy a policy.

If an insurance company claims it will pay to replace or repair the exterior water service lines, but excludes Acts of God, faulty construction, and normal wear and tear, what exactly IS covered? Many of these insurance plans appear inexpensive, prompting homeowners to purchase policies “just in case.” But if the company won’t pay out, or if all but the rarest of circumstances are excluded, that “inexpensive” policy can result in thousands of dollars lost. Finally, always check with your BBB as well as the Colorado Department of Regulatory Agencies (DORA) to be sure you’re doing business with a reputable company.

Today, consumers can buy insurance for everything from wedding disasters to airplane crashes. Rather than purchase numerous “what if” policies, many experts recommend self-insuring against unexpected disasters and expenses. Deposit the money you would otherwise send to an insurance company into a savings account, and save it for that day when the rain becomes a hurricane.

Has your hurricane already hit? If so, what kind of insurance, including self-insurance, worked for you?