Centerpoint Energy “Pipe Protection Plan”

Never mind my almost 17(!) years as a Realtor.

I’ve been a Minnesota homeowner now stretching back over three decades.

During all that time, I’d never been pitched a monthly “(gas) pipe protection plan” — until last week.

Here is Centerpoint Energy’s marketing spiel:

“As your natural gas utility, CenterPoint Energy is responsible for maintaining a safe, reliable natural gas distribution system that serves your home, up to and including the meter that measures your natural gas use. As the homeowner, your responsibility begins from the meter on. You are responsible for the maintenance, repair, and replacement of the gas pipes, connectors, and valves that run from the meter to each of your home’s gas appliances. Any damage or breakage may be your responsibility.”

–CenterPoint Energy letter to homeowners.

Optional Coverage

In practice, the most common gas appliances in a home are the forced air furnace, the hot water heater, and the clothes dryer.

While I’ve certainly seen those fail (primarily due to age), I can’t recall an instance where the gas pipes were the culprit.

My advice to area homeowners:  save the $3.95 monthly premium.

P.S.: By contrast, I’m a BIG fan of home warranties, which offer much broader coverage including the actual appliances.

See also, “Why Home Warranties Are More Popular With Listing Agents Than Home Sellers“; “Selling Home Warranties . . . to Whom Exactly?“; and “Home Warranty Coverage Confusion.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.
1 Response
  1. Darlene Dosio

    Why all of sudden are utility companies like CenterPoint Energy requesting their customers to buy insurance on the sewer/septic lines to their homes. (Electricity companies have providers have done the same). What’s next water lines to our homes, neighborhood light posts, telephone pole lines, cable TV lines, etc.,) Your companies are providing services through these lines & it shouldn’t be the responsibility of the customer to buy insurance on them. If natural gas is discovered on my property, it’s questionable if I am allowed to own it but I must pay insurance regarding pipes supplied by utility companies that are on my property or I must pay thousands of dollars if they’re defective.

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