Home Warranty Scams

[paulburgin]

I recently bought a home warranty which covers all the appliances in your home which includes heating and air conditioners. My HVAC unit went out and they stated in the web-site that they would repair or replace unit=after several phone calls and lots of e-mails they refused to follow all the statements made by them...so I filed a complaint with the State Insurance Commission,they could not do anything because the warranty company was in another state,so I filed a complaint with the consumer fraud division of my state and they referred it to the insurance commission,so I called the Insurance Commission and they stated that all Home Warranty Plans are nothing but a SCAM...So I looked up some home warranty info on the BBB Website and just on one company found over 1500 complaints....These companies are not regulated and are really not insurance but a warranty...and they get plenty of sass in their mouths when they talk to you as they think there s noting you can do,so be careful and READ THE TERMS AND CONDITIONS and you will see they really don't pay for anything and will just rip you off.....

[CarolA600430]

I also had a bad experience with Choice Home Warranty. My mini split air conditioner quit working. No where in the paperwork did it state mini splits were not covered. I emailed a request for them to work on it- my only choice was “air conditioning system” which I listed. An appointment was set up and when the company assigned called, I explained that it was a mini split and the representative for the air conditioning company said they did not work on them. They asked me to call Choice back and have them reassign the job. I called back and spoke with someone 3 different times explaining that it was a mini split and we were without air in the bedroom. There is a system that they can call back because no one is answering the phone, I put in a request and did not get call backs several times, but kept calling. They sent someone out who showed up and said that they did not work on mini split systems but that I had to pay the $75 fee to have them show up. I was told that when they did send someone out to fix the system that I would not have to pay an additional $75. I called again and was told that the system was not covered and that they would not be able to cover it. They referred me to John Lawful the Appeals Case Manager assigned to my appeal. He informed me that it was not covered and I was out my $75. I told him that I thought it was unconscionable to charge me for a call out that they were not going to cover. He was adamant that I would not receive a $75 refund. I told him to just cancel the account- I have paid $ 61.24 a month for 2 years and they could not even be a civil company that did right by their customers. CHOICE HOME WARRANTY is a SCAM!!!!!!!

[KeishsK316013]

I had the same issue with Choice Home Warranty. I spoke to a sales rep Kelly Jackson on the phone and specifically asked her if my mini split A/C was covered. She assured me that it was. then two years later it started having problems and I called in to get it fixed. A technician was sent out and then I was told it was not covered under the warranty. It was excalated to a Case Manager John Lawful who informed me that regardless of what the sales person tells me the contract says that it is not covered. He did however offer to credit my account the $65 that I paid for the technician to come out. I also had an issue with my central air a year earlier and the technician did a horrible work and it broke again in 2 months later which at that time I decided to just call a someone outside of the warranty company and get it fixed myself. Dealing with these people is just not worth the hassle of getting a home warranty. Their service is horrible in just getting a technician out and worse because of the bare inimum to get it fixed. I will not cancel my warranty because I still have 1 year left on my policy and I refuse to accept $211 back but I do hope that something goes out that they will be compelled to fix that I feel justified in the money and time spend running after this company. 

[mitchmorales]

I'm disappointed there are so many nay sayers about Home Warranties. As a Managing Broker for a Real Estate Firm, I have always personally kept a home warranty on all of my homes over the years. There are many great companies and when you need to save a lot of money for something that has failed, you'll be happy you have one. The average deductible is about $60. True story in 2016 my water softener, hot water heater, washer, garage door spring, and dishwasher ALL failed in a 6 month period and at different times. I paid only $60 for each claim and ALL the items mentioned were replaced!!! No goofing around, no having to pay for it myself, no having to take it somewhere else to be fixed. There were without any issue REPLACED. Add it up. Approximately $3300.00 would have come out of my pocket to replace these items. I paid $300.00. That's $60 for each claim. HOME WARRANTIES are not scams. And they the cover so much more. How about A/C and Furnace? Yep.. Covered. Use a reputable company and you won't go wrong. It's a shame that AARP hasn't stepped in to provide better insight to this than to let a great service be bashed by skeptics that have probably never had a warranty coverage. 

[r582687p]

Yep all home warranty companies are nothing but a scam!!! I do not understand why the Feds have not come down on these jokers and shut everyone of them down. They are nothing but PREDATORS just like a predatory lender who preys on low income people with high interest rates with all kinds of promises!!! Thats why the housing boom went KABOOM and its going to happen again if REGULATIONS are not in place!!!!

[ks83]

So agree that these "products" are nothing but fraud and a scam.  Warranty companies get realtors (who are paid a healthy commission) to sellers to offer warranty's as a sales incentive.  Home buyers quickly find out these insurance policies are worthless. Home buyer will have to pay $100 to have the warranty company send out its adjustor ( designated plumber, etc) to find a reason to deny coverage.  You are out the $100 dollars and have to go out and pay for the repair anyway. They have no significant remedy or appeal process and any attempts to seek redress or contest the fees will be met with punitive measure.  My advice to home owners. SAVE YOUR MONEY. do not fall for adds. Put a the hundreds you would spen on this in a repair fund. 

If you are a home buyer that has one of these fraud included  either ask for a price reduction of a similar amount and forget the scam.  

If you closed with one of these things in the deal call as soosn as you getthe contract and cancel to get your money back. 

[dj146]

Just a passing note reguarding your thread, I have had AHS for the last 10 years & they have done an outstanding job. Sorry for your problem.

It's like all things in life, there are good & there are bad, buyer beware.

[ks83]

Buyer Beware is right. Run Buyer Run is even better advice.  AHS is just as bad if not worse than others. This whole industry is corrupt.  they have a website entry "Worst Home warranty companies and Is home warranty a scam  runs by homewarrantyrviews.com.  if you look at the terms and conditions on htis site they acknowledge that Home Warranty Review "may be affitliated with any companies reviewd on this site"  site is nothing but a marketing front of HW companies  .high approval mark found on the site contrast drastically from abysmal marks found on independent sites.  AARP should be putting out warnings.

[Epster]

@paulburgin  Tough lesson learned, I guess, but at least now you know. Thanks for being so kind as to warn others.

[retiredtraveler]

Did you review the literature about these types of companies. If you had some some research, you would have easily found that everything that happened to you seems to be the rule, rather than the exception.

   I'm 'picking' on you as a general warning for everyone who puts down money for some kind of contractual obligation. It's up to you to arm yourself with knowledge before you enter a contract. Fifteen minutes online would scare the bajeebas out of you when you would read virtually nothing but horror stories about these companies.