One of the mailers arriving at homes offering a “water line protection program.”

Property owners receiving mailers from companies offering coverage for water and sewer line protection should consider a few things before purchasing a plan:

The coverage is legitimate and optional, but it isn’t insurance, and the products aren’t affiliated with, or officially endorsed by, regional utility providers.

At least two outfits — American Water Resources of Oregon and HomeServe USA — have started sending unsolicited advertisements and enrollment forms to local residents.

“They kind of blanket the city a couple times a year and try to get people to sign up,” Jo Johnson, water-sewer clerk at the Astoria Water Department, said.

Homeowners might easily assume they’re buying an insurance policy; both companies offer “peace of mind” with external water-sewer line protection for $5.49 per month and $65.88 per year.

However, what they’re selling doesn’t qualify in Oregon as insurance or service contracts. Rather, the product falls under the category of home service agreements, which are not regulated by the state Department of Consumer and Business Services.

“If you look closely at it, they’re not using the word ‘insurance,’” said Jake Sunderland, public information officer for the state agency. “They’re not violating the insurance code in any way, but that doesn’t necessarily mean that we’re giving it the green stamp. We’re just saying it’s outside of our authority.”

What’s more, the companies are not working with regional utility providers, another common point of confusion.

“Customers call us asking if it’s something that the city promotes,” Sue Dohaniuk, operations supervisor in the Astoria Finance Department, said. “We have nothing to do with that.”

HomeServe USA, in particular, has a history of attracting bad press because of controversial marketing practices. Residents nationwide have alleged that the company has engaged in deception by sending out mailers that appeared to come from local governments or utility companies.

That said, the forms sent to North Coast communities this year haven’t crossed that line and make it clear that HomeServe USA is an independent company.

None of this suggests that the companies are peddling scams.

In addition to offering several thousand dollars’ worth of coverage, American Water Resources deploys its own trained contractors within service areas to do repair and replacement work, whereas HomeServe USA shops around for contractors on behalf of customers.

“It’s a product that some people might think is necessary and valuable to them, and that’s why it’s actually specifically defined in law — in case someone does feel that’s appropriate for them,” Sunderland said.

American Water Resources and HomeServe USA — both of which have an A-plus rating with the Better Business Bureau — correctly point out that homeowners are financially responsible for water and sewer lines that run from the house to the meter.

“The city stops all responsibility at the meter,” Terry Ager, a water-quality technician for the city of Warrenton, said. “So, basically, it’s the customer’s responsibility from the meter to the home and throughout the house.”

In some states, the two companies are classified as insurance and do partner with municipalities.

The Better Business Bureau lists 156 customer complaints closed against American Water Resources — a New Jersey-based company owned by American Water — within the last three years, and 59 complaints closed within the last 12 months.

But the company also has 1.6 million customer contracts, Denise Venuti Free, a company spokeswoman, said. Compared to the size and scope of the business, “I would say that that’s pretty good,” she said.

As for HomeServe USA — a Connecticut-based subsidiary of HomeServe PLC — the Better Business Bureau lists 221 complaints closed within the last three years, and 77 closed in last 12 months. That’s from a base of 2.3 million customers and 3 million service plans, according to Myles Meehan, HomeServe’s senior vice president of public relations.

“While we don’t like to have complaints from any of our customers, the number we have is relatively low,” he said.

Sunderland encourages potential customers to do their homework and proceed with caution before purchasing a plan. Homeowners should know exactly what the companies cover, what they don’t and what conditions would void a contract.

American Water Resources, for example, will not cover “pre-existing conditions,” like longstanding leaks, or claims arising from acts of nature like floods or hurricanes. The coverage is meant for the normal wear-and-tear associated with underground plumbing, such as tree-root invasion.

Property owners may also want to investigate whether their water and sewer lines need coverage at all, whether the piping is even likely to experience damage that will demand attention.

And, of course, it can be instructive to read through online user reviews and look into consumer complaints filed with the Oregon Department of Justice.

“I would just be ‘buyer beware’ on this,” Ager said. “I would definitely read the fine print.”

Barbara Aguirre, a Warrenton resident, read the mailers and thought it all sounded like a great idea. But something triggered her skepticism.

“There’s so many of us that could just sign on the dotted line and send money before we realize that we might have made a mistake,” she said.