Residents of Ontario municipality question need for service line warranties

Some Brant County residents are questioning the validity of municipally branded letters they received from a third party advertising sewer and water line warranties, but the county says the mailers are legitimate.

Homeowners connected to municipal water and sewer systems began receiving the letters in early 2025, inviting them to sign up for exterior water and sewer/septic line protection through Service Line Warranty of Canada (SLWC).

“Scam?” One resident asked in a local Facebook group. Others questioned why the county would be promoting one specific warranty provider.

The county confirmed the letters are legitimate in a January news release.

The plan can help “shield residents from the financial shock of an unexpected repair,” which would fall to the homeowner, the release said.

The program is endorsed by the Associated Municipalities of Ontario and has been available to County of Brant homeowners since 2016.

The county receives a five per cent kickback of revenue from warranty products, according to a term sheet from May 2016.

It offers exterior water service line protection for around $50 plus tax annually, and exterior sewer/septic line coverage for around $60 plus tax annually, with no deductible, according to the county’s website.

 

Do homeowners need service line insurance?

“Homeowners are responsible for sewer lines leading away from their house,” according to a spokesperson for the Insurance Bureau of Canada (IBC), an association representing home, auto and business insurers in Canada.

Homeowners are also responsible for the water service line from inside the home to the property line, the county’s website says. Issues like clogging from grease fall to the homeowner, whereas structural issues found between the property line and the mainline sewer — like a pipe collapse — are the county’s responsibility.

Whether or not someone elects to get insurance coverage for them is “a financial decision,” Anne Marie Thomas, IBC’s director of consumer and industry relations, told The Spectator.

But if uninsured, homeowners should know they could face a cost “upwards of $5,000” if a service line breaks, depending on the circumstances, Thomas said.

She suggested calling an existing insurance broker or agent to ask if they offer service line coverage, what exactly it covers, and if it’s the coverage you need.

“Take that information and compare it against this service line coverage that you’re being offered elsewhere,” she said.

People can also use the IBC’s consumer information centre to ask professionals general insurance questions, Thomas said.

Hamilton residents raised concerns when the city partnered with SLWC in Aug. 2014.

Since then, Hamilton homeowners have received more than 8,200 home repairs (totalling around $3.5 million) through the program, according to an update received by Hamilton city council in January 2022.

As of February 2023, only around one per cent of “eligible homeowners” in Brant County had registered, according to an administration and operations committee presentation.

For more information, visit brant.ca/servicelinewarranty.

 

Celeste Percy-Beauregard’s reporting is funded by the Canadian government through its Local Journalism Initiative. The funding allows her to report on stories about Brant County. Reach her at cpercybeauregard@torstar.ca.

Feature image by iStock.com/Kurgu128