The City Council of Webster City heard a proposal Monday from Utility Service Partners, Inc., of Norwalk, Connecticut, more commonly known by its brand name HomeServe, to begin selling utility warranty insurance policies in Webster City.

The company and its policies are endorsed by the National League of Cities and its Iowa affiliate, the Iowa League of Cities. Eight hundred and fifty cities in Iowa, including Webster City, are members.

To date, 138 Iowa cities and towns have authorized sale of the HomeServe insurance plans, including Iowa Falls, Hampton, Eldora, Stratford and Des Moines. The company says it has 69,000 customers in Iowa. If a marketing agreement with HomeServe is eventually approved by the local City Council, the City of Webster City would receive 10% of the monthly premium payments in exchange for giving HomeServe access to the Webster City market.

A network of water and sewer lines are buried under the streets and lawns of Webster City.

Those in the city’s older, central neighborhoods can be 75 years old or older. They do their jobs so well, we barely think about them until a problem arises.

When a problem does occur, they aren’t just an inconvenience; they can be a water main leak under your lawn or a sewer line backup that floods your basement. Those can cost homeowners thousands of dollars to repair.

In a PowerPoint presentation, Ashley Shiwarski, representing HomeServe, cited several reasons the policies might appeal to homeowners. First, a leaking water line can waste thousands of gallons of water in a year. Homeowners pay for all that water, and it puts an unnecessary burden on a city’s water treatment plant by processing water that goes to waste.

She then pointed out that many homeowners mistakenly believe cities are responsible for maintenance of water and sewer lines on their property, or that it’s covered in homeowners’ insurance policies.

In reality, property owners are responsible for all water and sewer lines on their property up to the point it connects with the main trunk lines. Only a few, expensive insurance plans provide coverage for utility line malfunctions.

Bottom line: You’re on the hook when your water or sewer lines fail.

Finally, in a reference to how the policies could be important to many people experiencing a failure of water or sewer lines on their property, Shiwarski noted that 56% of Americans don’t have enough savings to pay for a $1,000 emergency expense. By having a policy, homeowners reduce the risk of having to come up with potentially thousands of dollars to pay for a utility line failure.

Three policies would be offered for sale to Webster City residents. A water line plan, paying up to $8,500 per incident, covers repair or replacement of broken, cracked or clogged pipes. The premium is $7.99 per month.

A second policy provides similar coverage for sewer lines and costs $12.99 a month.

Finally, a plan covering failures of water, sewer and drains inside the home is offered at $12.99/month.

Shiwarski pointed out that “all these plans are 100% optional; no resident will be required to buy them.”

The proposed contract allows HomeServe to make up to three direct mail solicitations to Webster Citians per calendar year. The city retains the right to approve content before the mailings are sent. HomeServe said the main purpose of the mailings is to educate homeowners about the risks they face by not having insurance.

For now, the city staff will study the proposed contract from HomeServe and put it on the agenda for a future City Council meeting. It would then be discussed and voted on in the form of a council resolution.