Skip to main content

[BayArea] How likely is it (statistically) that exterior water line breaks? Would/did you get coverage?

Just moved into a new house and received a letter for an "Exterior Water Service Line Coverage" from HomeServe as a CALWATER customer.

The letter states that the exterior of this water line is not covered home insurance and in case of a breakage it would cost thousands of dollars.

The cost is 6.99$/month (3.50/month for the first year) and coverage is up to 12k/year.

One concerning remark in the letter is also "The service line beyond the meter box may be an additional responsibility of the homeowner, but it is not included in this coverage".

What are the odds that such a line breaks, in say 20 years?

A "Replace water service line 26-100ft" is listed as $2661. It would take me ~30years to break even. In other words, if the chances are high that the line breaks in less than 30 years I am better off with this insurance. If this is less likely (as far as I know sewer lines are good for 100+ years) I'd be better off saving these monthly costs. This calculation does not take inflation/opportunity costs into account.

​

Did (would) you get something like this?

submitted by /u/segdy
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/usy4df/bayarea_how_likely_is_it_statistically_that/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more