Exterior electrical system insurance?

[lizzzi]

I just received a letter from the electric company offering  the "Exterior Electrical Line Protection Plan" from HomeServe. For $4.99 per month there is a $3,000 annual benefit, which includes multiple service calls per year. It covers the weather head, insulator, riser, meter base, and service entrance conductor. As far as I know, all of this is in good shape here, as the house was just inspected 10 months ago, and outside electrical components were actually upgraded to code by a licensed outfit before we would purchase the house. And I would have no trouble paying out of pocket for repairs with my FU money. Any thoughts? My tendency is not to buy this insurance.

[Frankies Girl]

I personally wouldn't buy it.

I think that sort of thing would be covered under home insurance if it was something damaged that you are (as opposed to the electric company) responsible to pay for. So in the event that you have an epic storm that does 10K worth of damage to your exterior electrical lines... you pay your homeowners deductible, which you would probably be paying any way.

And the chances of having something like that happen are usually pretty slim unless one lives in an area that has higher risk - like along the coast (hurricane/flood) or in tornado country - I wouldn't see the need to add extra insurance. I do live in a high risk area, and I still wouldn't buy it myself.

Sounds like a "hey, how can we bilk more money out of people?" type situation.

[exranger06]

Not worth it. The only time those components will get damaged is if a tree falls on your service drop and rips the conduit off the house. (The service drop is the wires that go from the utility pole to your house) You will NEVER need multiple service calls per year. How many times have you needed those components serviced in past years? Never? That's what I thought. Even if a tree DID fall on your service drop, well, a tree can only fall once. And fixing it should cost way less than $3k. Keep tree branches trimmed back away from the wires and you'll never have a problem with any of those components.

[Milspecstache]

Insurance is only offered, particularly without you asking, if the seller can make money off of it.  So statistically, it is not in your benefit to purchase it.

Only if you know of impending failure would it pay off and you already said you are in good shape (wonder if these two events are tied...) as that would really increase the chance of profitability for the seller.

Insurances I believe in: house, medical, car
The rest are only being offered because there is money to be made by the seller.

[lizzzi]

Thanks for the replies. I agree, and threw away the offer.