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Paulding County staff propose higher leak-insurance charge after surge in claims
Summary
County staff proposed raising the unified leak-insurance charge that appears on water and sewer bills after the insurer paid out $1,711,925 for 2,868 claims; the new combined charge would be $3.55 per billing cycle — $2.30 for water and $1.25 for sewer — and would be included in the base rate, according to staff remarks in the meeting transcript.
Paulding County staff told commissioners they are proposing an increase to the county’s leak-insurance charge after the private vendor reported payouts exceeded collected premiums.
The county implemented a leak-insurance program with ServLine two years ago to cover unexpected water- and sewer-related losses. County staff said the program has paid 2,868 claims and ServLine reported paying $1,711,925 back to Paulding County since the program began. ServLine informed the county it experienced a 112 percent loss ratio in the most recent period, prompting a proposal to raise the charge that appears on customer bills.
Under the proposed change discussed at the meeting, the combined charge for customers with both water and sewer service would be $3.55 per billing cycle. Staff explained that corresponds to $2.30 for water-only coverage and $1.25 for sewer-only coverage; the combined $3.55 would be incorporated into customers’ base water-and-sewer bill. Staff said policy limits remain the same: the program covers up to $2,500 for water and $2,500 for sewer per claim.
Staff emphasized the program’s value for customers who face unexpectedly large bills from undetected leaks. Wooten, a county official handling billing matters, said many customers “don’t even know they have a leak” and that the coverage has provided meaningful relief when a customer’s bill spikes. Staff said they plan to evaluate the program again next year and will continue communication efforts, including customer testimonials and a short video for county channels.
The transcript records discussion and clarifying questions from commissioners and staff about the timing and breakdown of the proposed increase; no formal vote or final adoption of the new charge is recorded in the provided transcript.
