Ad for heating insurance may not be what it seems

National Grid customers have been the target of letters attempting to sell them an insurance plan for their heating equipment.

The letters, printed with the National Grid logo, actually comes from a company called HomeServe . The company, which sells insurance plans for furnaces, recently bought the small branch of National Grid that sells insurance. The company also bought the right to use the National Grid name. For around $140 dollars, HomeServe is offering up to $1,700 in coverage. The plan automatically renews each year.

Ellis Guiles, of Tag Heating and Cooling in Syracuse, says customers hoping to protect their furnaces with insurance from HomeServe need to look closely and exactly what the company does and does not cover. "If you have a problem and something fails and you call homeServe to come and and get it taken care of, they may come back and deny you if you can't demonstrate you had regular maintenance over the course of the last year." he says.

Guiles recommends those looking for insurance for their heating equipment shop around before making any decisions. "If you want to get through this winter and you want the certainty that if something breaks you are not going to have a major out of pocket expense, do your research and know what's covered and what's not covered first," he says.

In a statement to CNY Central, HomeServe Senior Vice President Myles Meehan says, "HomeServe TMs Heating System Repair Plan is designed to provide peace of mind for homeowners in New York state...Customers are encouraged to read the mailing materials carefully and consider the benefits before purchasing coverage."