The City of Greensboro is rolling out a new optional insurance-style program for homeowners that promises protection from one of the more unpleasant surprises a property owner can face – a broken water or sewer line.

On the surface, it sounds like a helpful offering. However, like many programs that arrive in the mailbox with official-looking branding, it also raises a good question: Is this something homeowners actually need – or just something they’ll feel like they need?

The city recently announced its partnership with Service Line Warranties of America, a private company that sells repair plans for underground water and sewer lines and certain interior plumbing issues.

That company is part of HomeServe North America, which operates similar programs across the country.

The key point – and one many homeowners don’t realize – is that the city isn’t responsible for everything connected to your water and sewer service. In fact, if a pipe breaks between your house and the city’s connection, that repair bill is yours.

And those bills can get expensive very fast.

Depending on the depth of the line, the location, and how much digging is required, repairs can easily run into the thousands. In worst-case scenarios – particularly with older sewer lines – costs can climb even well beyond that.

That’s the gap that this program is designed to fill.

Under the plan, homeowners can purchase optional coverage that would pay for certain repairs to exterior water and sewer lines – as well as some interior plumbing and drain issues. The company says there are no deductibles or service fees for covered repairs, and the work is handled by licensed local contractors.

If something goes wrong, homeowners can call a 24-hour hotline, and the company coordinates and pays for the repair up to the plan’s limit.

Importantly, participation is completely voluntary.

City of Greensboro leaders stress that this isn’t part of a resident’s utility bill, does not affect water service, and is not required in any way.

Still, the city’s involvement is likely to catch people’s attention.

Programs like this often arrive in the form of official-looking letters that can easily be mistaken for a bill or a required notice. That alone is one reason they tend to generate questions and sometimes skepticism.

So, should you buy it?

The answer, like most things involving insurance, depends on your situation.

For homeowners with older houses – particularly those built decades ago with aging clay or cast-iron sewer lines – the risk of a failure is higher. Tree roots, shifting soil and simple wear and tear can all cause problems over time.

In those cases, a single major repair could cost far more than several years’ worth of premiums.  So for those owners, it might be a good idea.

On the other hand, newer homes with modern materials like PVC piping tend to have far fewer issues. And many homeowners go years – or decades – without ever experiencing a service line problem.

That raises the classic insurance question: Are you paying to protect against a real risk – or just a possibility that’s very unlikely to happen?

There’s also the issue of what’s already covered.

Standard homeowners insurance policies often do not cover normal wear and tear on underground pipes. However, some policies do cover certain types of damage, and some homeowners may already have optional riders or protection through other means.

That makes it important to check what you already have before signing up for anything new.

Another factor to consider is the structure of the program itself.

While the city says the plans are offered “at no cost” to the municipality, the announcement also notes that the city will receive proceeds from the program, which will go toward a future City/Guilford County customer assistance effort.

That naturally raises questions about how much revenue the city is expected to bring in from the program.

The city hasn’t presented the program as an endorsement, but the partnership does give the offering a level of visibility – and credibility – that a typical private solicitation wouldn’t have on its own.

For homeowners, that makes it even more important to look closely at the details.

What exactly is covered?

What are the limits?

What is excluded?

To its credit, the city is also promoting a separate tool that may help homeowners catch problems early. The free GSO WaterWise system allows residents to monitor water usage and receive alerts about unusual activity that could indicate a leak. In some cases, catching an issue early might prevent the kind of major damage that leads to costly repairs in the first place.

And for many homeowners, that kind of awareness could be just as valuable as any insurance plan.

At the end of the day, the new service line warranty program is a product designed to protect against a low-frequency but potentially high-cost event.

For some people, that peace of mind is worth it.

For others, especially those with newer homes or a higher tolerance for risk, it may not be.

But one thing is clear: If you own a home in Greensboro and something goes wrong with the pipes between your house and the street, the city isn’t going to fix it.

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