American Water Resources - in Philadelphia (and other markets?)

[Max T.]

This company has recently partnered with the city of Philadelphia. I assume they are in other markets as well. For just under $100 per year they will insure your water service and sewer lines. These can cost $4k and $6k to replace, respectively. I'm not a fan of home warranty companies but this price seems to be worth it considering the cost of the premium relative to the cost of the repair.

Does anyone have experience with this company?

Philly landlords, are you considering using them? Why or why not?

[Mike B.]

I don't buy insurance on water/sewer lines.  I had a neighbor who recently went through a huge dispute with his water company (PA American Water in Yardley).  He paid for the high end insurance for years and finally had an issue, so he filed a claim.  He had to pay out of pocket to have his main line fixed, etc and seek reimbursement.  It took months of back and forth and finally he got reimbursed (had to involve a lawyer finally, it was rough).  And now, they dropped him and stated he can no longer purchase their insurance.  He said at this point, he likely paid enough money in insurance all these years, he could have just pocketed that for the repairs (vs. repairs + insurance payments).  

Food for though