Consumer Alert: Cudahy man warns homeowners about deceiving letter he received in the mail

Consumer Alert: Cudahy man warns homeowners about deceiving letter he received in the mail

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CUDAHY, Wis. (CBS 58) --- A Cudahy man has a consumer alert for homeowners after he received a letter in the mail about purchasing insurance for his home water lines.

"What the letter is asking for is to protect your water line from the house out," said Richard Geske. For the second time, Geske says he has received a letter notifying him about the need for an insurance policy for his home water lines.

He says the letter doesn't make sense to him. It appears to be from an official agency, such as the city, and at first glance it looks like a bill.

"I called the city to see do they know anything about it," said Geske. The City of Cudahy confirmed that the letter was not from them and told Richard to ignore it. "The lady told me to rip it up and throw it in the trash. That's when it hit me, this was a scam," he said.

Geske reached out to the Better Business Bureau with his concerns. Lisa Schiller, Director of Investigations for BBB Wisconsin told CBS 58 that the letter is not a scam but something homeowners should be aware of. "This is definitely not a scam, however, it is not coming from the city, it is not coming from a plumber. The letter is coming from a private company. They are selling you an insurance policy," said Schiller.

The BBB says they receive similar reports about mail solicitation around this time each year.

"The letter talks about purchasing insurance to cover the water service lines generally going from point A, which is the street, to your home. It appears that there may be a gap in insurance policies that wouldn’t cover that area should something happen," Schiller explained.

Geske says the type of insurance being promoted in the letter is not something most people need. He says he's upset because the letter is presented in a way that could trick someone into believing it's required to purchase.

"They could be taking you for a lot of money. It just bothers me that someone is pushing this out…I don’t like it," said Geske.

The Wisconsin Office of the Commissioner of Insurance has previously released warnings about solicitation mail that could lead to potential scams. 

The BBB says if you receive a similar letter about purchasing insurance, don't assume it's legitimate. Do your research. Call your insurance agent or a local company that can answer your questions. If you do choose to purchase insurance for your water lines, find a locally trusted company to work with.

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