Apopka homeowners are financially liable for repairs to the sewer line between their home and the connection to the City's pipeline, according to a recent letter signed by Apopka Mayor Joe Kilsheimer.
Everyone who receives water or sewer services from the City should have received the Mayor's April 21, 2016 letter offering Apopkans the opportunity to purchase "Sewer Service Line Repair Coverage."
Apopkans will note that the word, "insurance," does not appear in the letter. This is because the "Sewer Service Line Repair Coverage" program "fully supported" by the City is not "insurance" according to the Florida Office of Insurance Regulation.
The dictionary defines insurance as, "...a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
The Office of Insurance Regulation considers the coverage offered in the letter to be a "Home Warranty." According to a spokesperson from the Office of Insurance Regulation there is, "... not much regulation," for Home Warranties and homeowners need to read the contract carefully with special attention to the "Exclusions."
Unlike insurance companies, the rates charged by Warranty Associations are not regulated by the Office of Insurance Regulation.
On November 3, 2015 Lee Zell from the National League of Cities made a short presentation to the Apopka City Council. Zell described the programs offered by Service Line Warranties of America (SLWA). The programs are endorsed by the National League of Cities as well as 270 municipalities across the country.
Zell also explained that the Program would provide, "... an incremental revenue stream to the city for the partnership," according to the official minutes of that meeting.
A motion was made by Commissioner Bill Arrowsmith, and seconded by Commissioner Diane Velazquez to approve and move forward with the National League of Cities Service Line Service Program. The motion carried unanimously.
The City of Apopka will receive $0.50 per month per paid warranty contract, according to the three-year agreement between the City and SLWA.
Service Line Warranties of America is actually offering Apopka homeowners three different Home Warranty contracts:
The City has approximately 22,000 water customers. If 50% of Apopka homeowners sign up for just one warranty each the City will receive $66,000 annually.
According to the Dallas Morning News, at least two other cities got better deals: Service Line Warranties of America is paying Dallas, Texas $450,000 per year plus $0.75 per contract. So did Tulsa, Oklahoma: $165,000 per year plus $0.50 per year.
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