ORLANDO, Fla. — The Orlando Utilities Commission is trying to sell its customers a new home warranty plan created to protect them from expensive plumbing problems and electrical failures.
But Channel 9's Steve Barrett asked why customers would need the service if they already have homeowners insurance.
Late last month, OUC began pitching the insurance product to its 200,000 customers. The warranty program is through American Water Resources.
"It's something our customers want, and they tell us they want it," said Tim Trudell of OUC.
Take your water lines as an example; OUC is not responsible for repairs past a certain point in your yard. Any problems that crop up underground or throughout the home is the homeowner's responsibility.
Channel 9 learned the plans can cover problems that homeowners insurance may not. Full protection comes out to about $1 a day and includes warranties for the water line, sewer line and main electric line, as well as power surge protection and in-home plumbing systems.
But University of Central Florida insurance expert Joshua Harris is not convinced homeowners need the extra coverage.
"When you pay for any kind of warranty, it's rarely a good financial deal," he said. "But some people really like that peace of mind."
Harris suggests an emergency savings account as a better option, but the warranties seem to be taking off. Enrollment is approaching 500 residents in just two weeks.
Add to that American Water Resources paid about $800,000 to OUC lock down the exclusive partnership.
"We did our homework and we made sure they're a reputable company, and we're trying to offer our customers another service," said Trudell.
WFTV
