Water-line insurance policy filled with exclusions

Water-line insurance policy filled with exclusions »Play Video

PORTLAND, Ore. – We have a warning about an insurance offer that may be sitting in your mailbox.

It's an offer that some KATU viewers mistakenly assume is coming from the City of Portland.

Though the city is responsible for the main water lines, the line that runs from the street to your house is your responsibility. That's why Wayne and Frances Rippon were considering getting insurance coverage from a company called Home Service USA Repair Management Corp.

For $4.99 a month, the policy is supposed to cover up to $6,000 in damage. In reality, the policy has all sorts of exclusions, and the chances of really needing the policy are slim.

"These things, even though they don't last forever, they last for a long time," said David Shaff at the Portland Water Bureau. "I have a relatively new copper line that someone put in a few years ago. My children will be gone before that line needs to be replaced."

The company's website says it is endorsed by the Portland Water District. However, if you look closely you'll see that is Portland, Maine.

The company itself is in Florida.

The Problem Solvers' bottom line? You're probably better off saving your $60 a year and then paying a plumber when and if you need one.