Consumer Alert: What you need to know about Home Serve’s optional coverage

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The Home Serve

MEMPHIS, Tenn. — A company called Home Serve has been sending out letters to Memphis residents with the city’s logo on it, offering monthly home warranty plans for exterior water and sewer lines.

WREG first reported about this a couple of weeks ago and it’s not a scam.

Memphis is indeed partnering with this company, but that doesn’t mean it’s worth your money.

A second round of letters are going out and there’s now bold font at the top that reads “Important information for the city of Memphis customers”.

This can seem confusing because this is a private company the city is working with that’s offering optional coverage.

If you opt in, you would pay a monthly fee and if there’s a major problem with your exterior water, sewer or septic line this coverage should kick in to pay for repairs.

While this might be an option for some, it’s not something you are required to do. If you do plan to sign up do as much research as possible first.

Like any home warranty, Home Serve has customer complaints about its service.

By the way, the city gets 12 percent of the payments received from those who sign up and an initial set-up fee of $100,000. They say they plan to use part of that money to establish a fund for special cases where residents can’t pay for repairs.