It's A Scam

Have you received one of those letters offering you water line protection? I have and lots of folks in our area have. Throw it away. It's a scam according to news reports. They've been busted in several states.
Billy Shannon-Hudson-Catskill Newspapers-Greenport officials are telling citizens to beware after letters urging them to buy water-line insurance — which town officials say they don’t need — arrived in residents’ mailboxes on Monday and Tuesday.

Attorney general warns of water service line protection It comes neatly packaged in a business envelope, complete with an acceptance form and a handy business reply envelope. But Arkansas Attorney General Dustin McDaniel says “buyer beware.” The AG says a warranty being offered to many Arkansas consumers to provide protection for water service lines may be literally tossing their money down the drain. -

Warnings sounded over offer of water line insurance

Better Business Bureau has fielded complaints

As for HomeServe, it has a "D" rating with the BBB and consumers in several states have filed complaints with their Attorney General's regarding the company's marketing. HomeServe has reached settlements with those states with no admittance of wrongdoing. The settlements required them to make it clear in their marketing materials that they were not affiliated with local water companies in those states.

So if you get one of these letters, toss it.