The Water Line Insurance Scam

This scam has been circulating in Memphis for a while.  Today I got another postcard in the mail, advertising it.  Customers have asked me about it.

The ad begins with the polysyllabic trigger word “failing infrastructure,” as though America is crumbling from the shorelines inward.  All they’re referring to is that your plumbing might break, duh!  Even people who voted wrong in the last presidential election probably know that already.  You can figure it out by studying the trucks that go around in your city.  Do you see any with decals indicating that the driver is a plumber?  Well, just a little higher-level thinking will tip you off that he probably makes his living fixing broken plumbing.  It happens.

Next revelation: repairs cost money.  I will just leave it at that.

Punchline: these postcard-mailing bloodsuckers will sell you an insurance policy that says they will cover the cost of the repair or replacement if your water service line has an emergency.

As with all insurance, the question is “What are the odds?”  Quite obviously, the company cannot make money unless the odds are in their favor.  In this case, however, the game is rigged; it isn’t even fair.  The odds of anybody needing this coverage are pathetically small.  Your water line is fine!  Save your $60/year in a jar somewhere for when you really need a plumber.

This company, by the way, is just one more “home warranty” provider and the water line scare is a low-cost gateway for them you upsell you later.  I mean, if you’re going to cover your water line, then why would you leave your air conditioning system at risk?  And your indoor plumbing and drains?  And your appliances?  And your computer?  And . . . and . . . and . . . .

Home warranties are a bad deal.  They’re overpriced and usually the service techs they use leave a lot to be desired.  Many customers have told me of their bad experiences with home warranty companies.  Yes, sometimes they’re a godsend and sometimes people hit a jackpot at the casino.  I recommend neither.