Your leak insurance Your leak insurance solutionsolution

Water & Sewer Lines are not covered by most homeowners insurance or the utility provider.

This has always been a common exclusion that until now we could do nothing about.

PROTECT YOUR CLIENTS

Leak detection service $450Excavation $500 - $2000Repair $60/hr + partsBed, Back-fill, Compact$500 - $1000Replace Landscaping & Sod $500 - $1000Other Possible Costs

Driveway and/or Sidewalk PatchingPermits

Minor repairs can cost $1000 to $2000Major repairs typically run $3500 to $4500

Frank and Jackie ShammelOlympia, WA

Ten year old homePolicy was purchased in FebruaryOn site within 8 hoursRepairs completed within 24 hoursNo deductibleNo out of pocket expense for client

“We highly recommend the coverage and enjoyed the simple and efficient claim process. Initially we were a bit skeptical but at just $47.88 a year we decided to enroll anyway. As you can see from the photos, a very nice job and thousands of dollars saved, thank goodness.”

Recent Claim

Typical sewer line de-clogging rates for root intrusion cutting.

36 YEARS

Median Age of Homes

Broken Water or Sewer Lines vs A Leaky Roof

A leaky roof can be replaced when budget

allows.

Broken water or sewer lines MUST be replaced

immediately

24 hour claim response by our contractors.

NWC strives for 100% customer satisfaction

Fast - local contractors in your area Professional – licensed and bonded Quality – Landscape, hard or soft, and sod

replacement is all covered.

Water & Sewer policy, just $7.99 per month

General Exclusions Known Pre-existing conditions

Natural Disaster

Property Owner Negligence

Policy will pay when you have an

• ““Emergency BreakdownEmergency Breakdown” means the sudden failure to the ” means the sudden failure to the External Water/Well or Sewer/Septic Services due to External Water/Well or Sewer/Septic Services due to defects in workmanship and/or materials, breakdowns due defects in workmanship and/or materials, breakdowns due to normal wear and tear, or breakdowns arising in the to normal wear and tear, or breakdowns arising in the course of ordinary functioning and usage, which course of ordinary functioning and usage, which immediately: immediately:

• a) Exposes You to a risk to Your health. a) Exposes You to a risk to Your health.

• b) Creates a risk of or damage to Your property or any of b) Creates a risk of or damage to Your property or any of Your belongings normally contained within the property; Your belongings normally contained within the property; or or

• c) Makes Your home uninhabitable. c) Makes Your home uninhabitable.

• ENROLLMENT / WAITING PERIOD ENROLLMENT / WAITING PERIOD • This Policy continues for one (1) year, beginning This Policy continues for one (1) year, beginning

thirty (30) days from the Effective Date listed on the thirty (30) days from the Effective Date listed on the Declaration Page, and is billed on a monthly basis. Declaration Page, and is billed on a monthly basis. However, in the first year of coverage However, in the first year of coverage You You may not may not make a Service call within the thirty (30) days of the make a Service call within the thirty (30) days of the Effective Date listed on the Declaration Page. During Effective Date listed on the Declaration Page. During that period, if that period, if You You decide decide You You do not want the do not want the Policy, Policy, You You can notify can notify Us Us and and We We will provide a full will provide a full refund of Premium paid. refund of Premium paid.

• COVERAGE COVERAGE • During the Policy coverage term, in the event of a covered During the Policy coverage term, in the event of a covered Emergency BreakdownEmergency Breakdown, to , to Your Your

external Water/Well Service Line, for which external Water/Well Service Line, for which You You have sole responsibility, from the point at have sole responsibility, from the point at which it crosses the outer vertical wall of the building on which it crosses the outer vertical wall of the building on Your Your property to the point at which property to the point at which it reaches it reaches Your Your property boundary, property boundary, You You should call the Emergency Service Hotline and, should call the Emergency Service Hotline and, subject to the limits of liability set forth below, subject to the limits of liability set forth below, We We will: will:

• a) Arrange for a licensed plumber or licensed service provider to provide a diagnosis of the a) Arrange for a licensed plumber or licensed service provider to provide a diagnosis of the problem. problem.

• b) Pay for covered b) Pay for covered Emergency BreakdownEmergency Breakdown. . • c) Repairs will normally be commenced within 24 hours of c) Repairs will normally be commenced within 24 hours of Your Your telephone request for telephone request for

servicing, subject to Exclusions. servicing, subject to Exclusions. • d) Provide all parts, materials, and labor to repair or replace a leaking or broken Water/Well d) Provide all parts, materials, and labor to repair or replace a leaking or broken Water/Well

Service Line between Service Line between Your Your Water/Well provider’s meter, or connection to Water/Well provider’s meter, or connection to Your Your Water/Well Water/Well Service Line and Service Line and Your Your residential dwelling located on the Property. residential dwelling located on the Property.

• We We will determine whether to repair or replace any covered parts. will determine whether to repair or replace any covered parts. We We reserve the right to reserve the right to select the materials and/or parts to be used in the repair or replacement; however, all such 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, materials and/or parts will comply with all relevant and applicable laws, regulations, codes, and standards. and standards.

• We We will perform all work related to the repair or replacement of the Water/Well Service Line. will perform all work related to the repair or replacement of the Water/Well Service Line. Repair or replacement under this Policy includes all excavation, backfill, and removal of Repair or replacement under this Policy includes all excavation, backfill, and removal of spoils in the area of the repair or replacement. spoils in the area of the repair or replacement.

• EXCLUSIONS EXCLUSIONS • We are not responsible for any of the following:We are not responsible for any of the following: • a) THAWING OF TEMPORARILY FROZEN PIPES, WHICH HAVEa) THAWING OF TEMPORARILY FROZEN PIPES, WHICH HAVE NOT RESULTED IN NOT RESULTED IN

AN EMERGENCY BREAKDOWN; AN EMERGENCY BREAKDOWN; • b) BREAKAGES AND LEAKS YOU ARE AWARE OF PRIOR TO ENROLLMENT b) BREAKAGES AND LEAKS YOU ARE AWARE OF PRIOR TO ENROLLMENT • c) SWIMMING POOLS OR DECORATIVE FEATURES (SUCH AS PONDS, FOUNTAINS c) SWIMMING POOLS OR DECORATIVE FEATURES (SUCH AS PONDS, FOUNTAINS

AND ANY ASSOCIATED EQUIPMENT), SPA, SPRINKLER AND FIRE LINE SYSTEMS; AND ANY ASSOCIATED EQUIPMENT), SPA, SPRINKLER AND FIRE LINE SYSTEMS; EXTERNAL GUTTERING, STORM DRAINS AND DOWNSPOUTS OR ANY DAMAGE EXTERNAL GUTTERING, STORM DRAINS AND DOWNSPOUTS OR ANY DAMAGE RESULTING FROM THEIR OVERFLOW; RESULTING FROM THEIR OVERFLOW;

• d) REPAIR OR REPLACEMENT OR UNBLOCKING OF COVERED PARTS, d) REPAIR OR REPLACEMENT OR UNBLOCKING OF COVERED PARTS, EQUIPMENT AND/OR SYSTEMS DUE TO THE GRADUAL REDUCTION IN EQUIPMENT AND/OR SYSTEMS DUE TO THE GRADUAL REDUCTION IN PERFORMANCE CAUSED BY NORMAL WEAR AND TEARPERFORMANCE CAUSED BY NORMAL WEAR AND TEAR WHERE AN EMERGENCY WHERE AN EMERGENCY BREAKDOWN HAS NOT OCCURREDBREAKDOWN HAS NOT OCCURRED; ;

• e) COSTS TO CORRECT OR UPGRADE ANY PART, EQUIPMENT AND/OR SYSTEM IN e) COSTS TO CORRECT OR UPGRADE ANY PART, EQUIPMENT AND/OR SYSTEM IN ORDER TO COMPLY WITH ANY FEDERAL, STATE, OR LOCAL LAWS, ORDER TO COMPLY WITH ANY FEDERAL, STATE, OR LOCAL LAWS, REGULATIONS, ORDINANCE OR UTILITY REGULATIONS; FOR EXAMPLE, WE ARE REGULATIONS, ORDINANCE OR UTILITY REGULATIONS; FOR EXAMPLE, WE ARE NOT RESPONSIBLE IF YOUR CITY MANDATES CHANGES TO EXISTING CODE, NOT RESPONSIBLE IF YOUR CITY MANDATES CHANGES TO EXISTING CODE, RESULTING IN THE NECESSITY OF MOVING YOUR LINES; RESULTING IN THE NECESSITY OF MOVING YOUR LINES;

• f) COSTS ASSOCIATED WITH TREATMENT, REMOVAL, RECOVERY, OR DISPOSAL f) COSTS ASSOCIATED WITH TREATMENT, REMOVAL, RECOVERY, OR DISPOSAL OF HAZARDOUS MATERIAL; OF HAZARDOUS MATERIAL;

• g) g) PAYMENT FOR REPAIR OR REPLACEMENTS OR UNBLOCKING PAYMENT FOR REPAIR OR REPLACEMENTS OR UNBLOCKING WITHOUT OUR WITHOUT OUR PRIOR AUTHORIZATIONPRIOR AUTHORIZATION; ;

• h) REPAIR OR REPLACEMENTS OR UNBLOCKING ARISING FROM h) REPAIR OR REPLACEMENTS OR UNBLOCKING ARISING FROM MANUFACTURER’S RECALLS, DEFECTS OR CLASS ACTION SUITS; MANUFACTURER’S RECALLS, DEFECTS OR CLASS ACTION SUITS;

• i) CONSEQUENTIAL OR INCIDENTAL DAMAGES; • j) INJURY, ILLNESS, DAMAGE, INCONVENIENCE OR LOSS OF USAGE CAUSED BY

DELAYS, NON-AVAILABILITY OF PARTS, LABOR DIFFICULTIES OR OTHER CONDITIONS BEYOND OUR CONTROL;

• k) ANY AND ALL COSTS ASSOCIATED WITH A REPAIR VISIT, IF IT IS DETERMINED THAT COVERAGE UNDER THIS POLICY DOES NOT APPLY, OR NO COVERED EMERGENCY BREAKDOWN IS DISCOVERED;

• l) COVERAGE ON MOBILE HOMES, RECREATIONAL VEHICLES AND COMMERCIAL BUILDINGS; MULTIPLE-UNIT DWELLINGS WHERE ONE WATER/WELL SERVICE LINE SERVES MORE THAN ONE UNIT;

• m) EMERGENCY BREAKDOWN CAUSED BY OR RESULTING FROM ANY NATURAL OR MANMADE DISASTER, INCLUDING BUT NOT LIMITED TO: INSECTS, ANIMALS, MISUSE, ABUSE, NEGLIGENCE, VANDALISM, THEFT, WAR, RIOT, MILITARY UNREST, NUCLEAR ACCIDENT, FLOODING, WATER FLUCTUATIONS, FIRE, HAIL, WIND, LIGHTNING, EARTHQUAKES, LANDSLIDE, CHEMICALS;

• n) CIRCUMSTANCES OUTSIDE OUR REASONABLE CONTROL SUCH AS EXTREME WEATHER CONDITIONS, POWER AND/OR SYSTEM FAILURE, INDUSTRIAL ACTION OR STATE OR FEDERAL AUTHORITIES EMERGENCY DIRECTIVES, DELAYS IN OBTAINING OR ISSUING PERMITS. FOR EXAMPLE, WE CANNOT BE HELD RESPONSIBLE IF OUR CONTRACTOR IS UNABLE TO REACH YOUR PROPERTY DUE TO EXTREME WEATHER CONDITIONS OR IS DENIED ACCESS BY A GOVERNMENT BODY;

• o) FACILITIES, EQUIPMENT, AND APPURTENANCES, SUCH AS PRESSURE-REDUCING VALVES, HOUSE VALVES, BACKFLOW DEVICES, WATER SOFTENERS, BOOSTER PUMPS, IRRIGATION AND SEPARATE FIRE SPRINKLER SYSTEMS, HOSE BIBS, AND OTHER SIMILAR ITEMS;

• p) REPAIRS OR REPLACEMENT DUE TO DAMAGE 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/WELL SERVICE LINE OR INSIDE PLUMBING OR RELATED FACILITIES;

• q) WATER/WELL PUMP HOUSING AND COMPONENTS, OTHER THAN THE LINE CONNECTING THE WELL TO THE DWELLING.

• LIMITS OF LIABILITY • Our obligations for a covered Emergency Breakdown are limited to: • a) $5,000.00 per occurrence $5,000.00 aggregate (maximum) per year. • b) The Policy will pay $500 per annum to repair or replace

sidewalks/pavement located in a public easement that are damaged due to Water/Well Service Line repair work by Us. The $500.00 is within Your limit of $5,000.00. Should sidewalk/pavement repair expenses exceed $500, it is Your responsibility to pay any additional costs.

• c) We will cover all occurrences in each year of membership, up to the $5,000.00 aggregate limit

• d) We will not be liable for any incidental or consequential damage, including damage caused by leaks or by water service interruption.

• e) We will not be liable for any damage to Your property or any other property unless such damage is the direct result of Our negligence while providing services.

• f) All work in relation to covered services must be performed by Us with Our authorization. We will not pay for any unauthorized repair or replacement of a covered item, including labor and/or materials.

• CUSTOMER’S DUTIES • We will not pay for any Services performed without Our prior approval.

Notice of any Emergency Breakdown must be given to Us upon discovery and during the coverage term.

• In the event of an Emergency Breakdown under this Policy, You must: • a) Call the 24 hour Emergency Service Hotline immediately at [800-790-

3201]. • b) Cooperate and assist Us in any matter concerning a covered Emergency

Breakdown. • c) Provide the licensed plumber or licensed service provider with access to

Your property. • d) You must take every reasonable precaution to protect the property until the

necessary repair or replacement or unblocking is authorized by Us and the work is completed.

• e) You will not have to complete any claim forms. You will need to sign a form to confirm that repairs have been completed. We will make payment directly to the licensed plumber or licensed service provider after the work is completed. In some cases, it may be necessary for You to pay for the Service call, in which case, We will reimburse You when We receive Your paid invoice(s) and process Your payment.

• RESPONSE TIME • We will respond to requests for service 24 hours per day, 7

days per week. Within the constraints of weather, emergency conditions, workload, and staffing levels, We will make every attempt to perform repairs on or replacement of Your Water/Well Service Line within 24 hours of notification of a leaking or broken Water/Well Service Line.

• However, We will not be responsible for delays beyond Our reasonable control. In the case of an unsafe condition, which will be determined solely by Us, We will not be required to provide service under this Policy for Your Water/Well Service Line until the unsafe condition is corrected.

• WARRANTY WARRANTY

• We We will repair or replace will repair or replace Your Your Water/Well Water/Well Service Line so that it will be suitable for Service Line so that it will be suitable for residential water service. All repairs or residential water service. All repairs or replacements will have a warranty of one replacements will have a warranty of one year. During the warranty period, if the year. During the warranty period, if the repair or replacement does not conform to repair or replacement does not conform to this warranty, this warranty, We We will make the necessary will make the necessary correction. All corrected repairs will be correction. All corrected repairs will be similarly warranted. similarly warranted.

Getting information to the client• ““Water and sewer lines that run from your house to the street have always Water and sewer lines that run from your house to the street have always

been a common exclusion on homeowners policies and we just recently been a common exclusion on homeowners policies and we just recently contracted with a company to cover the exclusion. This new policy gives you contracted with a company to cover the exclusion. This new policy gives you

$5000 in annual coverage for water and $5000 annually for sewer $5000 in annual coverage for water and $5000 annually for sewer line repairs with no deductible.”line repairs with no deductible.”

• ““Coverage is only $8 a month or $96 for the whole year and is separate Coverage is only $8 a month or $96 for the whole year and is separate from from your HO policy so claims on this policy have no impact on your your HO policy so claims on this policy have no impact on your HO claim status.”HO claim status.”

• ““It's excellent coverage and I highly recommend it especially on homes It's excellent coverage and I highly recommend it especially on homes where the service lines are older.”where the service lines are older.”

• ““We can get this done right now over the phone for you if you want.”We can get this done right now over the phone for you if you want.”

• * This is not really a “sales pitch” but information you are getting to your * This is not really a “sales pitch” but information you are getting to your clients.clients. Complete soft sell touch.Complete soft sell touch. You are letting them know of the You are letting them know of the exclusion and the solution.exclusion and the solution. What they decide to do with the information is What they decide to do with the information is completely on them.completely on them. We aren't working through the “NO”s or overcoming We aren't working through the “NO”s or overcoming objections. If they say “no” then you've still done your job and you can wish objections. If they say “no” then you've still done your job and you can wish them a good day.them a good day.

QUESTIONS AND ANSWERS What does this cover?

– Water and/or Sewer line from foundation to the property boundary– Septic line from foundation to the tank– Water line leaks– Sewer line clogs– Pipe repair or replacement– Landscape repair and sod replacement– All costs associated with repair/replacement with $0 deductible up to $5000 annual coverage for

water, up to $5000 annual coverage for sewer.

What is excluded?– Connecting devices to the water line such as pumps, backflow devices, etc…– Natural disasters such as flooding, earthquake, acts of war, etc…– Pre-existing leaks, clogs, or non functioning pipes that the customer was aware of prior to

enrollment.– Sump pumps

What if I don’t live there full time or on extended vacation?– Covered

Rental homes?– Covered (Billing address must include the property owner’s billing address)

Duplexes?

– If the duplex is serviced by on water line and one sewer line, customer is eligible with one policy.

– If duplex is serviced by more than one water line and/or sewer line, a separate policy is required for each serviced address.

Can coverage be purchased if I live in a mobile home?

– Mobile home can be covered if on a full, solid foundation and home owner is also the property owner (no parks).

My water/sewer lines cross my neighbor’s property. Where does coverage end?

– Your coverage continues because this is continuation of your property through legal easement Coverage is in effect until the point at which it crosses from your easement to public property or connects to neighboring service.

Shared private or community well?

– Refer the customer to NWC when there are three or more users.

What if customer has more than one water or sewer line?

– Policy will covers one water and one sewer line if purchased as a package. Additional lines require additional policy.

What contractors do you use?

– All contractors are local, licensed, bonded and in good standing. Contractors are vetted by NWC’s strict standards.

Is traveling time and mileage included in the policy limit?

– Yes.

What if the claim exceeds the coverage limit of the policy?– It is rare considering the volume and buying power of NWC and the low pre-contracted rates that

NWC has negotiated with approved contractors, but NWC is only responsible up to the policy coverage limit. Any amount over the limit would need to be paid to the contractor by the customer.

Will you reimburse me if I use my own plumber?– Policy requires the customer to contact NWC prior to any work being performed. All work

performed must be approved by NWC claims department. If the customer requests a particular plumber, NWC will consider the customer’s request pending the contractor meets NWC standards and rates can be agreed upon prior to work performed.

Does the policy reimburse for lost water charges on the water bill?– No, but be aware that most municipalities allow a 50% one time reimbursement for overages due to

water leaks.

Is the septic tank, drain field, or well covered?– No. The septic line from the foundation to the tank is covered. The water line from the well casing

to the foundation is covered excluding all tanks, switches, or other hardware controlling the performance of the pump.

What if I don’t want automatic billing?– NWC, at the customer’s request, can send an annual bill to allow a customer to send in annual

payments. Monthly premiums are not eligible for paper statements. This is due to the extra costs associated with paper billing. All transactions are processed electronically.