Water customers in the City of Smithville will soon have an insurance program available that could save them money in the case of a broken water line or leak. Customers will also have the option to insure water and sewer line relief for possible repairs.
On Wednesday, March 23, the City of Smithville held a special called Board of Aldermen meeting, where they heard from Water Leak Relief, LLC of Crossville representative Casey York, who explained the program.
For a monthly fee of $1.65, included as a part of customers’ monthly bill, residential customers would be covered against high bills incurred when water leaks occur from the meter to the home on their property, up $1,500 per occurrence. Only two claims per 12-month period would be allowed.
Water customers will be given notices about the program, with those wishing not to participate, being allowed to opt out. Those who opt out won’t be assessed the monthly fee, but also won’t be entitled to an adjustment on should they have a leak. The monthly fees could be assessed as early as May for coverage to begin in June.
“They get two claims per year, up to $1,500 each time,” York explained. “If you have a water leak inside the house, if a pipe bursts inside your house, it covers that. If your toilet is leaking, it covers that, but it’s got to be a leak. You can’t fill up your pool. That doesn’t count because that is not a leak. If it’s a leak, we cover the cost of the high-water bill. We don’t cover repairs.”
“This also counts on sewer,” York continued. “For your customers who have sewer that price ($1.65 per month) is for both (water and sewer). If your average water bill is $50, and your average sewer bill is $50, you just pay the $1.65 per month and it covers the high-water bill on both of those. The customers pay their average bill. If over 12 months your average bill is $50 and you have a leak causing your water and sewer bill to be high, we cover everything twice a year up to $1,500 for each claim.”
The protection program also provides coverage for commercial single occupancy customers ($4.21 per month) and commercial multi-occupancy customers ($7.70 per month) under the same terms and conditions as residential customers.
A program is also available to residential and commercial customers for water and sewer line repairs on their property, up to a $10,000 per year. For $4.65 for residential water line and $6.45 for residential sewer line relief. The added monthly costs for commercial single occupancy customers would be $13.45 for each water and sewer line relief and $26.96 for commercial multi-occupancy customers for each water and sewer line relief.
“All your customers are opted into the water line relief, but they can out opt of that at any moment,” York said. “They will get a letter 30 days before it goes on their first bill, and they can opt out and back in at any time. The water line and sewer line relief cover your repairs, commercial or not. It’s a main water line repair up to $10,000 once a year. For residents the monthly fee is $4.65 or $13.45 for commercial customers but it’s worth it especially if you have ever had to dig up concrete to repair a line because it’s very expensive.”
The leak must meet the city’s current leak policy, occur on the customer’s side of the meter, be accidental in nature, and be repaired within a period of 10 days from discovery with proof of repair to the city.
To be eligible the customer’s water bill must be for an amount that is 200% or greater than the customer’s average monthly water bill as defined in the terms and conditions. Normal monthly water bill means the average dollar amount of the 12 previous months’ bills. A customer may only receive two benefit claims during any 12-month period. Benefit claims will be made for up to two months for a single leak occurrence. If a customer was notified by the city of a leak and did not make the needed repairs within 10 days, no benefit claim would be granted.
Water Leak Relief, through an insurance policy with Plateau Casualty Insurance Company of Crossville, will take the amount of a customer’s current water bill with the leak and subtract the average of the last 12 water bills. The city will be paid the difference up to the benefit limit of $1,500.
The program does not cover the following:
· Any cost associated with repairing the customer’s water service line
· Customers with multiple living units on a single meter such as a campground, trailer park, motel, etc. are not eligible for a benefit claim, except as included in multiple occupancy commercial service customers.
· Routine dripping faucets
· Premises left vacant or abandoned without reasonable care for the plumbing system
· More than two occurrences per 12-month period
· Filling of swimming pools
· Watering of lawns or gardens
· If a customer becomes aware of a potential problem with the plumbing which could cause a leak and that problem is not resolved by turning off water flow to the leak source within five days.
· If a customer has been notified of a suspected leak and does not repair the leak within 10 days of becoming aware
· Faulty water meter
· Improper meter reading
· Natural acts or disasters
· Pressure washing or other external cleaning products
· Sprinkler system leaks
· New construction buildings that are unoccupied.
In other business, the city adopted on second and final reading a $40,000 budget amendment upgrade the tennis courts next to the Smithville Golf Course. The project will resurface the tennis courts, with new striping, and possibly realign one section of the courts that are facing east to west. Tennis courts are supposed to face north and south. The courts are used by the DCHS Tennis team for competitions.
Competition Athletic Services, Inc. of Chattanooga was awarded the $33,700 bid to do the work. The funds for the project will come from the city’s share of federal American Rescue Plan Act money.
