Gas Line Repair Puts Homeowner at Risk of Economic Shock

Gas Line Repair Puts Homeowner at Risk of Economic Shock

Shannon, a Southern California Gas customer, was at risk of economic shock when learned she had a problem with her gas service line. Service was temporarily discontinued to her home after a leak was detected. 

“The gas company could detect that there was extra gas being used,” Shannon said.

An Unexpected Repair is an Unexpected Expense

Without gas service, Shannon was unable to enjoy many of her home’s basic necessities in the interest of health and safety. Returning service would cost thousands of dollars, putting her at risk of economic shock.

Economic Shock

Shannon’s situation isn’t unusual – more than 50 percent of American homeowners needed a home systems repair over a 12-month period, according to the Winter 2019 edition of HomeServe’s Biannual State of the Home survey. These situations can cause economic shock, a large and unexpected expense that negatively impacts a household.

Economic shock is even more common than emergency home repairs, with 60 percent of U.S. households having experienced economic shock, such as emergency home repairs, within a year, according to The Pew Trusts. Unfortunately, more than a third of homeowners have $500 or less set aside for home repairs.

A repair like the one Shannon needed could cost, on average, $20 to $30 per foot, but up to $75 per foot, depending on the work done. Luckily for Shannon, SoCal Gas had partnered with HomeServe, a leading provider of home repair solutions, and Shannon had enrolled in HomeServe’s service line protection program.

HomeServe Offers a Solution

“When we found out there was a problem and the gas was turned off, we called HomeServe,” Shannon said. “They contacted a plumbing company to come out and determine the problem.”

Economic shock

HomeServe dispatched a licensed and insured network plumber, Frassica Inc., to Shannon’s home. The line was old and deteriorated – dating to the late 1960s when the home was constructed – and needed replaced from house to meter.

“[HomeServe] does whatever they can to make sure the customer’s necessities are met,” John, a Frassica technician, said. “HomeServe goes above and beyond to do what needs to be done; the best warranty company that you could work for.”   

The job included extensive concrete work and 250 feet of trenching, which would have cost $10,000 to $15,000, a substantial economic shock.

Save Money and Worry With a Policy

“With HomeServe, they are saving a tremendous amount of money,” Ken McCarthy, Frassica owner, said. “We’ve had to cut multiple sections of concrete and dig trenches. Some people couldn’t afford to pay for this, but that’s the value of HomeServe. For a nominal monthly fee, they’re covered when projects like this come up, and they get good value.

“These types of plumbing failures happen. I own a plumbing company, and I also have a HomeServe policy. Anyone who is a homeowner has experienced plumbing failures or will.”

Shannon knew the job would be large but didn’t realize the extent of the work.

“It was a much bigger job than we anticipated, but there was no out-of-pocket [costs],” she said. “The entire repair is being covered by HomeServe.”

Shannon was happy to have service returned, free of the worry of economic shock.

“I’m very satisfied with HomeServe,” she said. “I would absolutely recommend this type of warranty because you truly don’t know when something is going to go wrong. They came through for us and saved us a lot of money.”

Gas Service Line Repair is a Financial Shock

“When I came home that evening, I smelled gas very strongly,” Dorothy said.

It’s every homeowner’s nightmare – a gas service line failure. Dorothy, a Houston resident and CenterPoint customer, learned that her gas service line, although only 15 years old, was leaking.  

An Unexpected Problem

Jose Carbajo of Texas Quality Plumbing and his crew were quickly onsite, where they assessed the problem. Jose realized the gas service line was PVC, which was no longer up to code in the area.

“We’ll dig, trench, about 50 feet and install new [gas service] line that’s up to code,” Jose said.

Not only had the gas service line not lasted long, but replacing it would cost $3,000. However, Dorothy couldn’t delay, because she would have no gas service to her home until the gas service line was repaired. Leaving it as it was, was unsafe and untenable.

Financial Shock Can Prove a Hardship

Dorothy had experienced a financial shock, or a large, unexpected expense. The effects of a financial shock, such as an unexpected home repair or a sudden loss of income, can be devastating, and the United Nations estimates 40 million Americans are living in poverty. Estimates range from three-in-four to three-in-five Americans who are living from paycheck to paycheck.

Many homeowners are not prepared for a financial shock. However, 60 percent of American households endured one in a calendar year, according to the Pew Trust. Among those who experienced a financial shock, 55 percent of households struggled to make ends meet afterwards.

The HomeServe State of the Home Fall 2019 survey found more than half of Americans had a home repair in the prior twelve months. Meanwhile, one in five has nothing set aside in a “rainy day fund.”

A Solution Emerges

Luckily for Dorothy, CenterPoint partnered with HomeServe, a leading provider of emergency home repair plans, including gas service lines, electric service lines, water heaters and HVAC systems. When Dorothy received educational materials about the possibility of gas service line failures through the partnership, she signed up for gas service line protection.

“I signed up [for gas service line coverage] in July, I believe, never thinking this would happen, but it did, and I’m very glad that I had it,” she said. “When I called, the agent was very helpful, answered any questions I might have, reassured me that I was covered, which made me very happy. The contractor that HomeServe sent out was very helpful and ready to fix whatever it was.”

Jose and his team installed a new, safe, code compliant gas service line for Dorothy. It didn’t cost her a penny, thanks to CenterPoint and HomeServe.