LEAK INSURANCE UPDATE

As most are aware, ServLine, the insurance provider that provides coverage to our customers for financial assurance against high water bills, is having to raise the rate for that coverage to our members. There are several points that each member needs to be aware of in this change, besides the price increase to $4.34 / month.

1. The coverage provided by ServLine is only for the billing. If you want insurance for your water lines, appliances, or anything else that may be associated with your plumbing or appurtenances or your private property, you should visit with YOUR insurance agent. Our district is not in the insurance business. We must be very careful of all the laws, rules and regulations placed upon us. We cannot use “public funds” (your money) to subsidize any one member or customer’s service. We DO NOT adjust bills. That is called FRAUD. If the meter readings indicate you consumed a large portion of service, that billing is factual. Any adjustment to that billing is not only fraudulent to the business but to every other member of our system. The “point of connection” is a legal statutory boundary where the districts responsibilities end and the customer’s responsibilities begin. We cannot dictate what size pipe you use, materials, or processes in which each customer may want to facilitate their usage of the service provided. Those responsibilities are the members. Therefore, in respect for our members private property rights, we define very clearly where the point of connection is. (See the Things-to-Know  article on our website)
2. The district does not profit from this insurance. That would be against the law. Every cent that a customer pays for this coverage goes to ServLine. For several years ServLine has continued to provide coverage to our customers at a loss for their business. Our customers have filed more claims and ServLine has paid their bills totaling more than our customers have paid for their insurance. It is fair and reasonable to not expect a company to operate at a loss. Hence the rate increase effective August 1, 2026 billing.
3. If you chose NOT to partake in the coverage ServLine is providing, we would ask that you sign a document which is available on our website, under the ALL FORMS AND REPORTS tab (Leak insurance OPT-OUT) or in the district office.
4. The details of the coverage and the rate increase have been mailed to each customer. Any questions or additional information requests can certainly be addressed by the staff at Hughes RWD #6. I would strongly encourage anyone who may have questions about anything regarding the water service provided by our district to reach out directly to us. Our district does not utilize “social media” accounts for legal reasons. Most any relevant information can be found on our website, and if you have questions, feel free to contact us directly through our website, via email (RWD6@hotmail.com), or by phone (580-892-3677)
5. Each of our customers are members, co-owners of arguably the best rural water system in Oklahoma. The Board and staff make every effort to provide the best possible service, not just in quantity and quality of water, but in every aspect of our business. We want everyone to be proud of YOUR water system.