City of Ottawa ends endorsement deal with water line insurer

A copy of a letter informing residents about a service line protection program by a company partnered with the city of Ottawa. (CTV News Ottawa)

The City of Ottawa says it has terminated its agreement with a company that was offering water line warranties under the city's masthead over the last few years.

The city and Service Line Warranties of Canada (SLWC) entered into an agreement in 2020 to provide optional warranty plans for homeowners to cover potential costs for repairs to water and sewer lines on private property. These lines that connect to the city's infrastructure are the responsibility of the property owner and not the city, should something occur.

• Sign up now for daily CTV News Ottawa newsletters
• The information you need to know, sent directly to you: Download the CTV News App

The City of Ottawa said, at the time, there was little in the way of insurance plans that would cover these types of repairs. The city also said the goal of the agreement was to increase awareness about homeowners' responsibilities with regard to water and sewer lines.

Letters arriving in mailboxes in 2021 prompted some confusion and concern from residents, worried it was a scam. The letters were for warranty coverage with SLWC but had the City of Ottawa logo on them. The city confirmed it was part of a legitimate partnership.

In 2022, the program was extended to 2027. In 2023, city council voted to direct staff to renegotiate the contract to prohibit further direct mail to residents.

The City of Ottawa announced Monday it was ending its agreement with SLWC, effective Jan. 9, 2025, giving the company 30 days' notice of early termination, which was built into the agreement it had.

The city says any homeowners with SLWC plans will not be affected.

"Termination of the Agreement is not to be construed as a reflection of the services offered by SLWC. Termination of the Agreement will not impact existing policies, as the policy contracts remain solely between the resident and SLWC, meaning residents can continue to rely on the terms and conditions of their contract," the City of Ottawa says.

According to figures provided in 2023, around 4,000 residents had signed up for plans and more than $500,000 of work had been performed since the program began.

The city says a growth in warranty services and insurance coverage that is now available to homeowners to cover service line repairs on their properties is behind the decision to terminate the endorsement of this particular company.

"Residents can continue to rely on their contract terms and should direct any questions regarding enrollment, billing, or payment to SLWC," the city says.