A TARNISHED REPUTATION
A lot of you Realtors offer home warranties to your clients, and I am certain that you do so innocently. But do you know that the credibilty of the home warranty industry is tarnished in the eye of the public ?
DO A BACKGROUND CHECK
Have any of you ever Googled a home warranty company's name and the word `complaints' or `fraud' with that name ? I challenge you to take your favorite home warranty company and do just that. Find out how many people feel like they got burned, turned down wrongfully, or got seriously rotten service..... here's one site that should keep you busy: www.my3cents.com. THERE ARE MANY OTHERS.....
CREDIBILITY GAP
There is a HUGE problem in the home warranty industry, and the public is becoming savvy to it. Information is just a click away.
The problem is inherent to the model on which most home warranties operate.
THE NO-DOC HOME WARRANTY and the PRE-EXISTING CONDITIONS clause
If you (as a homeowner) call up a home warranty company, and ask them how they can warranty a house they have never seen, they glibly tell you they take your word for it. At least that's what they told me.
How nice............................if only the real world operated this way.
How many health insurance companies will insure you without a physical exam ?
The fact is, most home warranty companies do not ask for or even accept documentationas to the serviceability of anyone's home, which leaves the warranty company the option of rejecting the claim based on the convenient ' PRE-EXISTING CONDITONS' clause.
The naive homeowner tells them his house and all its systems are in good operating condition, is told that his word is all that is required, but will find it is his word against a service technician in the end.
And the warranty company always goes with the word of their technician!
KEEPING IT CONVENIENTLY VAGUE
Some home warranty companies even boast that an inspection is not required ! But isn't that just what is needed ?
Documentation would show that there were no pre-existing conditions, there were no improperly installed or sized systems. But the warranty companies really don't want that. Why would they, unless they were intending to honor their promises.
WHO GETS HURT IN THE LONG RUN ?
Obviously the homeowner is the primary victim. However, who do you think they might blame for selling them the rotten warranty product ? Who do you think they will never call again or refer ?
Thats right folks. ITS YOU !
THERE IS A BETTER WAY !
There is onehome warranty company that does buisness differently. One that
requires an inspection first.
has no Pre-Existing Clause.
that you will not find any complaints about
you can trust with your reputation
That company is Advantage Home Warranty and their 'No Denied Claims' Home Warranty. Check it out. Any questions ?
Philip LaMachio, Advantage Inspection Clear View, Greensboro, NC. 27403
Here is an example of an agent getting burned by the home warranty industry !
Home Warranties - A Rip Off Or Is It Just Home Security of America? By Bob Mitchell
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In case anyone cares here are a few complaints typical of what you will find on a site such as my3cents:
American Home Shield Complaint
Air conditioning repair - Home warranty
Location: Atlanta, GA
On August 9 I reported an A/C outage. It's now late September and the repair has yet to be completed. No reason has been given, only promise after promise to get back to me as soon as possible.
This is a vendor to avoid.
First American Complaint
Home Warranty Scam - Home Warranty
Location: Westminster, CA
helpful votes
Moving into my new home I was assured that if anything went wrong, the First American home warranty would cover it. Immediately upon moving in in August, I discovered that the cook top did not work. That was in August 2007. Now it is October 25, 2007, and nothing has been done. This company has stalled, stalled, stalled on doing the needed repairs.
In my opinion, I would NEVER trust this comp
Don't Use Alliance Home- First American Home Warranty! - Home Warranty Insurance
Location: Salt Lake City, UT
helpful votes
Hi,
We own a number of rental homes and used Alliance Home Warranty- First American Home Warranty for a number of years. However, the company is now attempting to avoid every claim possible. We have had a few claims, and whenever we do, they are all denied for various reasons. Why have a policy that never covers anything? Recently the repair person they sent out told us we need a whole air conditioning system ( which they would be happy to put in for us for $5000) and that it is not covered under the Alliance warranty.
We got it fixed privately by a certified AC repair person for $125. Then we had a minor furnace problem, again the repair company said it wasn't covered because there was no ground wire, code issues, and that we needed a whole new furnace system because it was not to code- offered to fix it for $2800.00. Claim denied by Alliance, again. We called another furnace company that fixed the problem for $75.00 and told us that everything was up to code ( it was 3 year old system). Bit suspicious??? When we have tried to cancel our policies with them, which are obviously worthless, we have told they have not received our repeated letters, faxes, phone calls to cancel our policies etc. I have left messages with everyone in the cancellation department from staff member to management.
I have filed a complaint with the California Department of Insurance- www.insurance.ca.gov and suggest you do as well. Their staff refuse to return messages as well. This company has gone down hill and is obviously doing everything they can to avoid paying out on claims! Be warned!
(Actually, this is not evidence of a company that has gone down hill, it is par for the course ! )
Total Protect Home Warranty = Total Consumer Ripoff - Home Warranty
Location: MD
helpful votes
Total Protect is an absolute rip off. I will be reporting them to the BBB and to County, State and Federal officials as well as asking my Maryland Congressional offices to look in to what is clearly a "Total" unmitigated consumer fraud. I will be happy to join a class action lawsuit against them at any time.
By the way, when they answer the phone they do not say Total Protect, they say HMS Real Estate Support Solutions so I assume HMS is hiding behind the name Total Protect to shield it from these numerous abysmal consumer complaints. The HMS website says it sells new home warranties through real estate offices but I could find no mention of Total Protect Home Warranties whatever on their website and the Total Protect website does not mention HMS at all. I will ask regulators to look into that as well.
My heat pump broke down in June 2007, during an extreme heat spell, and Total Protect could not have cared less. After 11 telephone calls over six months with not a single one returned, and after being outright lied to by several of their always-different yet always-incompetent representatives, I still have not been offered anything even resembling a fair settlement. I just spoke to the "floor supervisor" who with the most obnoxious passive/aggressive "I am sorry you are not satisfied" routine, refused to let me speak to the head of the customer complaint unit. He ignored every request I made for reasonable followup on my previous 10 phone calls, gleefully repeating his mantra that they had made their offer (in other words take it or leave it, we refuse to negotiate at all), and then instead of attempting to help in any way insisted on giving me the address for the "disputes department" where I have to send in a lengthy written request. I can just imagine how much "Total" attention that will get! I asked for a telephone number for the disputes department and was told I could not have it.
My sad story follows: after sending several totally incompetent people out to look at my 15 year old heat pump (one of Total Protect's "expert technicians" stole the company truck and disappeared -- I couldn't make this up if I wanted too), and after several ridiculous arguments about whether the unit was repairable, Total Protect agreed to replace the unit, but only with a lower than builder grade model of their choice costing $2,100 (and labor was $700 of that price) when the exactly comparable Trane heat pump model cost $7,440. Total Protect then helpfully pointed out that I would be responsible for a number of "additional fees" that would be charged by their "expert" installer, such as extensive rewiring that allegedly would be required. When I on my own had a reputable local dealer (with high grades from Consumer CheckBook), put in a Trane heat pump (since my other unit was a Trane model), I was informed that no rewiring was required. It appears that Total Protect was simply trying to get as much of their $2,100 back as possible. Even after the installation was completed and when the company that did my installation had no need to comment at all they noted that Total Protect's replacement "offer" was totally ridiculous and in no way a good faith attempt to do a comparable replacement.
Don't ever have anything to do with Total Protect. It warrants nothing but what it wishes to warrant, and It protects nothing but its own pocketbook, and its service is the absolute worst I have ever run into anywhere. I will check with the Maryland Attorney General's Office to determine whether it is possible to bring criminal fraud charges against Total Protect.
And it goes on and on and on and on.............................................