You probably received a letter, not that long ago, on “official” FPL letterhead, encouraging you to sign up for “Exterior Water Line Coverage” or a “Water Heater Repair and Replacement Plan” from HomeServe for just $3.99 to $6.99 per month, which is conveniently added to your FPL bill.

The letter claims that it costs $2,587 to repair an exterior water line and you probably already know how much you paid for your water heater but, for a small monthly fee, you can rest assured that, if anything happens, it will be fixed at no cost to you. Sounds like a good deal, right?

Not so fast…

HomeServe is not an insurance company. It’s a privately-held company, owned by billionaire brothers George and Michael Karfunkel, and their products aren’t affiliated with, or officially endorsed by any utility provider. HomeServe contracts with local water and power companies to provide services that are financially beneficial to the utility company and HomeServe – not you.

HomeServe USA, HomeServe’s parent company, has attracted a lot of bad press over the years because of their controversial marketing practices. Homeowners across the country have alccused the company of engaging in deception by sending out mailers that appear