Not a scam, but…

Changes approved by the 2012 Oklahoma Legislature opened the door to allow home warranty companies to sell service contracts without regulation by any state agency.

Several Purcell residents have received letters from HomeServe USA Repair Management Corp., offering coverage for exterior water lines between the meter and the house.

The letters tell residents they are responsible for the full cost of maintaining and repairing the exterior water service line that brings fresh water to your property ... Repairs to this line are not typically covered by basic homeowners insurance and could cost you thousands of dollars.

According to the letter, homeowners signing up for the $4.99 per month plan will have $6,000 protection for covered repairs.

However, fine print on the reverse side states that to be covered, any damage to a water line must be the result of normal wear and tear.

Water line damage caused by accident or negligence is specifically not covered.

Jim Smith, chief of the Anti-Fraud Unit at the Oklahoma Insurance Department, said while the letters technically arent a scam, the solicitations fall between any laws we have on the books.

They make it sound like any other home insurance coverage, Smith said. Weve gotten inquiries from about every city in the state. Theres not much we can do with them.

The Oklahoma Attorney Generals Office has also received consumer complaints about the solicitations.

When the legislature changed the rules governing home warranty companies like HomeServe, Smith continued, they took away our jurisdiction over what they do.

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Not a scam, but...