Do not be taken in by insurance for water leaks

Utilities giant Veolia and several others such as Lyonnaise des Eaux, Doméo and Aquazen have been criticised for sending customers official-looking letters saying they are obliged to have insurance against water leaks.

The letters contain a number of errors, starting with the fact that such insurance is not obligatory, and ignoring the fact that most people are already covered under their household insurance and have no need of another €100 a year policy.

The letters have been going out for some time but, apart from checking the cover you have on your multi-risques policy, you need do nothing.

The water companies’ letters claim that homeowners must be covered for the costs of searching for a leak outside the home but domestic policies will generally cover such tracing work, including digging up the garden and then reinstating it to original condition.

Another point suggested by the companies is that water use caused by a leak must be paid for by the customer. However, a 2011 law says the supplier must warn clients of excess usage and it cannot bill them if it fails to do so. In addition, the firm cannot charge more than double the usual bill.

Lastly, the letters are being sent out to all customers but only concern those whose water meter is outside their property.

It is big business for the insurers: consumer watchdog Que Choisir said one firm took in €76million in premiums but only paid out €12m.

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if you have taken out insurance from one of these firms