Questionable Insurance Marketed Locally
12/24/2012

(KNZA)--A national solicitation offering water line insurance comes to the local area; and, as is happening elsewhere, causes confusion on who is sending it and whether or not it's legitimate. 

The mailing appears official, almost governmental, and that has caused concerns in the City of Horton where extensive water line repair work is currently underway. 

City Clerk/Administrator Candy Schmitt says local water customers keep inquiring about the letter, which she says has no connection to the local community. 

Instead, the letter is being sent by a firm known as HomeServe USA. 

Denise Groene, State Director for the Better Business Bureau of Kansas, says the company is legitimate and their offerings are not a scam. However, she says it's a matter of “buyer beware"(Play Audio) 

A perusal of HomeServe USA's listing on the Better Business Bureau website shows consumer concern about the company, and how the BBB has intervened(Play Audio) 

Groene makes clear that dealing with the company is not an outright no no, but she does say, in light of the actions taken against HomeServe USA, to make sure all bases are covered prior to entering into any contract(Play Audio) 

Another way to be certain that the service is even needed is to check with local municipal service providers first, and see what issues they already oversee(Play Audio) 

According to the Better Business Bureau, HomeServe USA has reached agreements with Kentucky, Ohio, Georgia and Massachusetts attorneys general regarding the allegations of misleading solicitations, with consumers believing they were being asked by their local utility provider to make the purchases. 

Groene says anyone with concerns, or complaints, should contact the Better Business Bureau at bbb dog org.  


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