Hot Springs Municipal Utilities has recently received more than 50 phone calls and walk-in inquiries regarding the legitimacy of a mailed solicitation for water service line insurance coverage by an independent company called HomeServe. The company is not affiliated with or sanctioned by the City of Hot Springs, and the insurance they offer is not required by law. A number of Hot Springs area seniors have received HomeServe’s letter, offering insurance to cover the water line from their water meter to their house.
According to a news report issued yesterday by KHTV-Channel 11 in Little Rock, the area’s Better Business Bureau has received more than 200 complaints during the last year from Garland County to Batesville regarding the company’s offer. Mike Rohrer, BBB Communications Director, contacted the City of Hot Springs on Monday, relating concerns regarding potentially deceptive advertising with too many exclusions in fine print. Those contacting the BBB have been advised to check their existing homeowners’ insurance and to inquire about an optional rider.
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