American Water Resources Insurance is a company that provides a legitimate service, in response to a need which exists as they claim it. American property owners are responsible for water and sewer lines under their own property, and many homeowners' insurance policies do not cover those repairs.
American Water Resource Insurance is registered with the Better Business Bureau and maintains an A+ rating. There are no known legal issues with their advertising, and there are no known open government investigations into their practices. The number of complaints they have fielded must be taken into context with the number of people they have serviced, and it merits noting that they tend to resolve those complaints successfully. As of May 2015, there are no negative reviews on BBB.org that were written by anyone who actually used AWRI's services.