Leak Protection Insurance is being offered by Utility Management Service, Inc., (UMS), the non-regulated affiliate of Del Oro Water Company. The California Public Utilities Commission (CPUC) regulates all Del Oro Water Company tariff services. Since the LPI program is a non-tariff program operated by UMS, it is not regulated by the CPUC. The LPI program is an optional service, and you are not obligated to purchase this service in order to receive water service from Del Oro Water Company.
ELIGIBILITY You must own or have written authorization to provide maintenance for the customer-owned water service line and associated parts between the Del Oro Water meter and the residential dwelling served by Del Oro. A water service line can be no greater than 2 inches in diameter and must be in good condition on the day LPI takes effect. Water service lines longer than 200 feet must be inspected and approved by UMS or its agent before LPI becomes effective. UMS reserves the right to deny coverage for any reason, including but not limited to, compliance with this agreement, relevant rules, regulations, laws local codes or standards, or if your water line is otherwise nonconforming. Separate coverage is required for each water service line at a residence. LPI is nontransferable.
RESPONSE TIME UMS or its agent will respond to requests for service 24 hours a day, 7 days a week. Within the constraints of weather, emergency conditions, workload and staffing levels, we will make every attempt to perform repairs or replacement within 24 hours. However, we will not be responsible for delays beyond our reasonable control. In the case of an unsafe condition to be determined solely by UMS or its agent we reserve the right to delay service to your water line until you make the area safe. If you refuse to make the area safe, UMS reserves the right to terminate LPI.
COVERAGE LPI covers all parts, materials, and labor to repair or replace a leaking or broken water service line between Del Oro’s meter box and the residence. UMS or its agent will determine whether to repair or replace any covered parts. UMS reserves the right to select the materials and/or parts to be used in the repair or replacement; however, all such materials and/or parts will comply with all relevant and applicable laws, regulations, codes and standards. UMS or its agent will perform all work related to the repair or replacement of the water service line. Repair or replacement under LPI includes all excavation, backfill costs, and removal of spoils in the area of the repair or replacement. LPI also covers damage to the service line caused by earthquake and freezing.
EXCLUSIONS LPI does not include any parts not specifically identified as covered. Appurtenances such as pressure-reducing valves, backflow devices, water softeners, booster pumps, irrigation and separate fire sprinkler systems, hose bibs, etc., are not included. LPI does not cover pre-existing damage, new installations, relocation, or alterations of existing water service lines by others. LPI does not include repairs or replacement of parts damaged directly or indirectly as a result of you or any other party working or excavating on your property or in the vicinity of your water service line or inside plumbing or its associated parts. LPI does not cover damage caused by flooding, volcanic eruption, sinkholes, landslides, civil disobedience, riots, war, terrorism, or natural disasters other than earthquakes or freezing. LPI also excludes any property where the water service line branches off, or is tapped into, to serve multiple dwellings. LPI does not cover service lines improperly installed by others.
LIMITATIONS UMS will cover a maximum of $2,500 per year. UMS will not be liable for any incidental or consequential damage, including damage caused by leaks or by water service interruption. UMS will also not be liable for any damage to your property unless such damage is the direct result of negligence of UMS or its agent. All work in relation to LPI must be performed by UMS or its agent. UMS will not pay for any labor or materials for repair or replacement of any covered items performed by any unauthorized parties.
WARRANTY We will repair or replace your covered water service line so that it will be suitable for the use intended for a one-year period from the date of repair or replacement. During the warranty period, if the repair or replacement does not conform to this warranty, we will make the necessary correction. All corrected repairs will be similarly warranted.
ENROLLMENT LPI begins within 30 days of the application receipt. UMS reserves the right to make an on-site inspection of the customer’s water service line and associated parts to ensure they are in proper operating condition before accepting any responsibility under LPI. The customer shall grant UMS permission to fulfill our duties under LPI. Although most homeowners’ insurance policies do not cover the cost to repair or replace water service lines, it is the customers responsibility to verify coverage with his or her insurance carrier, prior to enrollment in this program, in order to avoid coverage overlap.
BILLING LPI requires an initial one-year commitment. LPI will be billed as a non-regulated charge on your monthly Del Oro Water bill. Participants will be billed in advance at a monthly rate. There will be no prorations of the last month’s billing. Non-payment and late payment will result in a lapse of coverage under LPI. Non-payment or late payment of LPI will not result in severance of the tariff water service. UMS reserves the right to adjust the coverage and price upon thirty (30) days written notice to you.
RENEWALS After the first year, you may cancel LPI at any time. LPI will be automatically renewed at the end of the first year.
CANCELLATION AND TERMINATION After the first year, you may cancel LPI at any time by mailing a request for cancellation to Utility Management Services, Drawer 5172, Chico CA 95927. UMS may also terminate LPI for nonpayment. Prompt payment will ensure continuing coverage. UMS also reserves the right to discontinue LPI at the end of the 12 month period at the complete discretion of UMS.
DISPUTE RESOLUTION All disputes shall be submitted in writing and addressed to the UMS LPI Plan Administrator. The LPI Plan Administrator shall, within fourteen (14) days of receipt, respond to a customer’s dispute. If the LPI Plan Administrator’s recommendation is not satisfactory to resolve a customer’s dispute, the parties agree to have the dispute heard by an independent mediator before initiating formal legal action. The losing party, as determined by the mediator, shall be responsible for all costs of mediation, including, but not limited to the prevailing party’s coasts and its own costs of mediation. In determining the losing party, the mediator shall consider the whether the LPI Plan Administrator’s recommendations were reasonable and adequate to resolve the dispute. The mediator’s recommendations shall not be legally binding on the parties.
*Please retain a copy of the Leak Protection Insurance Terms and Conditions for your records.
