Title
HomeServe Service Line Warranty Program
Description
This report provides the Transportation, Infrastructure and Planning Subcommittee an update on HomeServe's Service Line Warranty Program and the types of service it currently provides to the City of Phoenix residents.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
Service Line Warranties of America (SLWA) by HomeServe was created in partnership with the National League of Cities (NLC) to educate property owners about their service line responsibilities and to help residents avoid out-of-pocket expenses for unanticipated and potentially costly service line repairs and replacements. As one of the program's early adopters, the City of Phoenix is now one of nearly 1,000 municipalities and utilities participating in the NLC Service Line Warranty Program.
The warranty program includes two types of coverage: one for Exterior Water Service Lines and one for Exterior Sewer/Septic Lines. Both products cover the homeowner's responsibility from where the utility's responsibility ends to the wall/foundation of the home. This is an optional warranty program offered to all Phoenix residents; however, the program is not required. If a resident chooses to purchase water and/or sewer line coverage, the monthly fees are included below.
- Exterior Water Service Line coverage - $7.95/month.
- Coverage Cap of $8,500 per claim, unlimited claims, and no annual limit.
- Exterior Sewer/Septic Line coverage - $9.45/month.
- Coverage Cap of $8,500 per claim, unlimited claims, and no annual limit.
City of Phoenix homeowners can enroll in SLWA at any time by going to slwofa.com or by calling 1-844-257-8795. Additionally, residents can enroll by sending in the enrollment form that comes in the information letters that SLWA sends to Phoenix homeowners periodically.
The City of Phoenix's partnership with SLWA began in September 2012. To date, the program covers 27,324 customers and 13,461 repairs have been completed, totaling $3 million in revenue to the City and $7.4 million in customer savings with a customer satisfaction rating of 4.9 out of 5.
HomeServe now offers two new programs in addition to the Exterior Water Service Line and the Exterior Sewer/Septic Line coverage programs. HomeServe also offers a Blanket Program that would provide water and sewer line coverage for all Phoenix homes in the event of a water or sewer line emergency instead of the current opt-in program for Phoenix residents. HomeServe also offers a Water Leak Adjustment Program for Phoenix residential customers that would cover actual water leaks in addition to water and sewer line repairs. This would require participation by all Phoenix single-family residential customers. Both programs can be explored further and considered as future partnership opportunities.
At the Feb. 1, 2023 Community and Cultural Investment Subcommittee, staff was directed to conduct analysis on the new HomeServe programs and impact to Water residential ratepayers, procurement options, actual costs, and ratepayer feedback. Staff will seek input through the Water Rate process and bring the staff analysis back to Council for consideration.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the City Manager's Office.