Rocky Top leak insurance for businesses to begin June
Insurance coverage for water- and sewer-line breakage for commercial utility customers in Rocky Top will begin in June, City Manager Mike Ellis said during last Thursday evening’s City Council meeting.
The City Council approved extension of the leak insurance to commercial properties during its Feb. 20 meeting. This same service began for single-family residential properties in February.
Fees for commercial leak insurance will be $6.50 each for water and $6.50 for sewer for smaller properties, including restaurants, for a total of $13 a month.
Under the plan, larger properties – which includes hotels – will pay $13 each for water and sewer leak coverage, for a total of $26 a month added to their utility bills.
As with residential customers, the leak insurance will be added automatically unless the customer goes to City Hall and opts out of the program.
On Feb. 1, residential utility customers began paying a monthly fee of $2.35 for water leak coverage, and an additional $2.35 for sewer coverage, unless they had chosen to opt out.
Opting out of the insurance means that utility customers will no longer be allowed to have leak adjustments made to their bills by the City Council, as they have been in the past.
City Manager Mike Ellis contacted the insurance carrier at the council’s request after the residential coverage was given final approval by the councilmembers in January, after he told them only residential customers were included in the original plan.
Ellis said at the time that he didn’t know whether the coverage was even available for commercial utility customers.
After checking with the carrier, he brought the commercial coverage plan to the council for approval during the February meeting.
For residential customers, the insurance will pay up to two claims a year – for a total of $2,500 – per customer for high water and sewer bills caused by leaks.
