The Vermont Department of Financial Regulation (DFR) and the Vermont Attorney General’s Office are aware of a mailing that has been distributed to homeowners in Vermont offering an insurance-type product that covers water service line protection for their property. The product is in the form of a service contract that pays for certain claims in the event outside water and sewer lines that service a home are damaged. All companies that sell or issue service contracts to Vermonters, or cover property located in Vermont, are required to register with DFR.
Consumers are encouraged to contact DFR’s Insurance Division to check to see if the entity is a legitimate company and properly registered in the state by calling 802-828-3302 or toll-free at 800-964-1784. As with any product, consumers are advised to research the offering thoroughly before they purchase to ensure it is appropriate and suitable for their needs.
DFR 10.14.2014