Home Warranty - selected user comments #3

Review filed under: National Home Protection
Author: Donald Walker
HWR2Copyrighted

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On Aug 11, 2008 I contacted someone named Jeffrey at national home protection located in the city of New York City, NY: 42 West 38th Street 8th floor suite 800 New York, NY 10018. I have two properties in the State of California that I was considering home warranties for. I wanted to know if there were discounts for multiple properties. Jeffrey told me he had special pricing for multiple homes called the “realtor pack “which was 15% off quoted prices with a 45.00 Dollar service call deduction. He told me in order to receive these discounts I had to purchase a minimum three year policy. My main concern was what the policy exclusions were. I call it a policy because that’s how national home protection advertised their service on the internet as an insurance policy. I asked if I could review the policy first and Jeffrey told me that once I purchased the policy he would immediately e-mail me a copy of the policy to review and also send me a copy through the U.S. mail that I would receive in about three days, along with 300.00 Dollars in Home Depot gift cards (50.00 per property per year) that were part of a promotional link to their web site and that I had 30 days to review the policy before it went into effect and that I could cancel at any time and keep the gilt cards, and after 30 days I could cancel with a pro-rated refund .I then gave Jeffrey my credit card number over the phone to complete the purchase. On Aug 13, 2008 I checked my e-mail and had not received the policy from Jeffrey, I did receive an e-mail from someone named Victor Hakim Sales Manager at national home protection (nhp) who offered me the same so-called “realtor pack” deal (see attachment #B) that I had just purchased from jeffrey but without the requirements that I was subjected to earlier. I now realized I had been the victim of false and misleading business practices at nhp. On Aug 18, 2008 I finally received the (2) insurance policies. In the mail from nhp and after further review found that Jeffrey misrepresented the facts about their cancellation policies and promotions (I received no home Depot card nor could I cancel the policy at anytime). He clearly committed fraud over the phone. I immediately contacted nhp and spoke to someone who refused to give her name, about cancelling the policies. I was told my request was being forwarded to a manager for review and a decision would take 72 hours then someone would call me. On Aug 20, 2008 I sent two e-mails as a reply to victor hakim about dissatisfaction with nhp and demanded a full refund. I explained that Jeffrey had not explained the terms or conditions to me as stated in their policy, and that as I looked further into their company I found out that it was common for his employees to deceive the public. Further nhp does not make assurances that the public understands their cancellation policies, nor do they provide reasonable time to review or an opportunity sign their policies. My e-mails were never answered.
On Aug 20, 2008 I faxed to nhp a formal notice to cancel all policies and continued to call. All faxes were verified as received. On Aug 22, 2008 I called nhp and again spoke to someone who told me that my cancellation request was still being processed and my final call to nhp was on Aug 25, 2008 when I was told nhp will not accept my request to cancel the policies. It’s very clear based on the sampling of hundreds of complaints which I have enclosed with this letter that National home Protection engages in deceptive business practices to obtain their customers. Consider that fact that a policy that takes seven days to reach a customer via U.S. mail would be impossible to review with three day (72 hour) clause or the fact that nhp employees do not inform their customers of the importance of these conditions and assures that they fully understand them.
Nhp has an extensive history of deception and fraud and has an unsatisfactory rating with every known consumer protection agency, and was doing business under the name of United Home Warranty, and are currently under criminal investigation in the state of New Jersey for consumer fraud. They have now changed their name to National Home warranty and are currently doing business in the state of New York.
Their customers are being denied service for no reason, hundreds of customers never receiving their (Home Depot) promotions and cancellation requests denied.
I hope this information will encourage you to do what’s necessary to protect thousands of Americans from consumer fraud and deception by National home Protection as witnessed at:
1. Complaints.com 6.Abclocal.go.com
2. Scams.com 7.The squeakwheel.com
3. My3cents.com 8.Consumeraffairs.com
4. Complaintboard.com 9.thestuccocompany.com
5. Ripoffreport.com 10.viewpoint.com

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Home Warranty Advice - selected user comments #2

Review filed under: HSA Home Warranty
Author: Paul Dalton

Call me a homeowner with realistic expectations. It seems that some others expect 1 hr service; but for the price we pay that is unrealistic, that speed of service would come with a steep price. Heat and cold can be uncomfortable; but they are not considered “emergency” items until they become life-threatening.

It is Saturday and I just called in a claim on my downstairs heating unit, which apparently just stopped working. The customer service agent, Sarah was polite, took my claim provided me the claim#, the name of the preferred provider and a phone number to contact them if I have not received a call by 10 am on Monday. (To me, that is next day service and I can live with that)

As a policy holder for 3 years, I can recall 4 claims (3 of which were honored without problem and 1 which we disagreed upon; but the unit is functioning).

I have never had a problem with HSA customer service (other than prolonged wait time). Each agent has been polite and tried to be helpful (they didn’t always have the answer I wanted but they tried to help).

It appears some people confuse HSA service with that of the sub-contractors that showed up to provide service. For the most part the contractors HSA sent to my house were polite and knowledgeable; with one exception (after my complaint and likely others, that contractor is no longer part of the HSA network) Yes HSA tries to find the lowest cost providers to make their business model work and those tend to be one or two man businesses; but that doesn’t mean they can’t be knowledgable. The contractors that have been to my residence diagnose the problem then convince the HSA rep that the service is covered because as one guy put it; “I make more money when I have work to do and unless they approve the claim, I can’t do much work.”

Without this policy, I never would have been able to replace the compressor on my HVAC unit for $75 (+50 to the contractor for a second man to help with carrying/instalation/disposal). Yes, it is a 10 seer unit, so it is not the latest and greatest, and yes it is a lower tier brand name so it may not last as long as top-tier unit; but I have AC that works just fine for a severely discounted price.

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Insurance Claims - Another way to pursue tough claims

Recently, there was an interesting review posted at AHS warranty discussions page about dealing with insurance claims. The legal option suggested by the reviewer might be useful to some homeowners, who have difficulties dealing with home warranty insurance claims.

It is not practical and cost effective to take legal route to pursue your insurance claims and you may want to read How to pursue insurance claims article before you go that path. However, if you are fighting an insurance claim on a big ticket item, and you have exhausted all other options, this is definitely an effective strategy. Author of this post himself was an attorney and he effectively used the legal threat to beat the home warranty company.

Here is the excerpt:

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American Home Shield - how to beat home warranty companies at their own game

I have discovered how aggrieved homeowners can turn the tables on home warranty companies and beat them at their own game. Please share this with everyone you know.

I’m an attorney and after having a problem with my home warranty company, American Home Shield, I decided to investigate whether other homeowners had experienced the same or a similar problem. What I found were web sites devoted to consumer complaints on which numerous homeowners had recounted incidents of fraud, deception, and rip-offs by their home warranty company. I also found a blog written by a former American Home Shield employee and another written by a former plumber for a home warranty company. Both recounted situations that would not pass the “smell test” in a court of law.

I also investigated lawsuits that had been filed against American Home Shield in Georgia, which is where I live. I found about 15 cases. The majority of cases had been filed in small claims court. As I reviewed the cases, I discovered that none of the cases had been litigated. In every instance, the case had been settled to the Plaintiff’s satisfaction although the details of each settlement were not part of the case file. With the knowledge that all cases had been settled to the homeowners’ satisfaction, I realized that American Home Shield would settle with an aggrieved homeowner before allowing a case to go to trial. My conclusion is that the only thing aggrieved homeowners need to do to beat home warranty companies at their own game is to file suit. The last thing American Home Shield wants to do is litigate a homeowner’s claim and the reasons are obvious to me.

The most obvious reason American Home Shield would not want to litigate a claim is that in most instances, the cost to American Home Shield to settle a claim would be less than the cost to litigate. The average amount of a claim in the cases I found was $3,800.00. Two were for less than $1,000.00 and only one was for more than $10,000.00. I’m sure far more than the 15 homeowners who have filed lawsuits in Georgia have had their claims denied. American Home Shield wins when a claim is denied and the homeowner does not sue, which is exactly what American Home Shield is counting on homeowners not doing.

Another reason American Home Shield does not want to litigate is because the company does not want to have to defend its craftily drafted contract or its questionable business practices, which is exactly what it would have to do if a case went to trial. American Home Shield also does not want such information to become public knowledge, which is also likely to happen. Additionally, a judge or a jury would also be hard pressed to return a verdict favorable to a company that engages in questionable business practices.

The final reason American Home Shield does not want to litigate is because a lawsuit actually places American Home Shield in a precarious situation. American Home Shield would have a difficult time defending any claim by a homeowner because the company has no first hand knowledge about the claim; it would need the testimony of the service contractor who, for its own reasons, may be less than eager to testify. The only knowledge American Home Shield has is what the company has been told by the service contractor. And any testimony from American Home Shield about what it was told by the service contractor is hearsay and not admissible in court.

To defend a claim, American Home Shield would need to subpoena the service contractor who actually made the diagnosis to testify about the claim. If the homeowner has done his/her homework, he/she would subpoena witnesses who could dispute the witnesses for American Home Shield. The homeowner should subpoena one or more service companies who had been called either for a second opinion or to make the actual repairs to dispute the testimony of the American Home Shield service contractor. The homeowner might also consider locating one or more other aggrieved homeowners to testify about their problem with American Home Shield. Another good witnesses for the homeowner to subpoena would be a former service contractor for the home warranty company or a former employee of a service contractor.

Since American Home Shield has at least three significant reasons why it does not want to litigate, the best and easiest way an aggrieved homeowner can beat American Home Shield at their own game (and most likely any other home warranty company) is to file suit. The one thing for an aggrieved homeowner to keep in mind is that if he/she does not sue, the home warranty company will win. But if he/she sues, the homeowner will most likely win. And that is how an aggrieved homeowner can beat American Home Shield at their own game.

My advice to aggrieved homeowners is not to stress over a denied claim, the denial of a situation as an emergency, repeated “band-aid repairs,” or a delay in authorization or in the repair of an item. I would also advise a homeowner not to waste time arguing with American Home Shield but to set a reasonable deadline for the appropriate action. Upon expiration of the deadline without receiving satisfaction from American Home Shield, the homeowner should then proceed as if they did not have a home warranty and then sue American Home Shield for reimbursement. The homeowner should also remember to document every action or inaction by both himself/herself and American Home Shield. Although the disadvantage to the homeowner is initially having to pay for the repairs, the advantage is that the homeowner can choose the service contractor and the brands and quality of products. I won’t guarantee all aggrieved homeowners will prevail every time but I have good reason to believe most aggrieved homeowners will prevail the majority of time.

For aggrieved homeowners whose claims were denied at sometime in the past, you may still be able to sue for reimbursement. To make that determination, the homeowner needs to research the statute of limitation for suing on a contract in their state. In any event, a homeowner should be safe filing suit for a claim that was denied during the past twelve (12) months.

Within the next six months, instead of reading homeowner’s stories about being scammed and ripped off by their home warranty company, I want to read stories about how homeowners turned the tables and beat their home warranty company at their own game.
If anyone has any questions, I can be contacted at LegalCohen@aol.com.

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Posted in Home Warranties, Home Warranty, Home Warranty Claims, Home Warranty Scam, Homeowners Warranty | No Comments »

Need a home warranty? Probably not

Gregory Karp | Spending Smart
November 18, 2007

Home warranties are a hot topic, as many home sellers offer the additional peace of mind to attract buyers. But many homeowners are asking, ”Should I buy a home warranty for myself?”

Home warranties, or service contracts, are different from homeowner’s insurance, which provides hazard and liability protection. A home warranty is a service contract for an existing home that covers the breakdown of its major operating systems, such as a furnace, and major built-in appliances, such as a dishwasher. The homeowner buys the one-year service contract for $300 to $500 and pays a service charge, often less than $100, for each call.

These warranties are most common in home-sale transactions. In general, it’s a good idea for home sellers to pay for a home warranty as a marketing tool to attract buyers in a slow market, said Ilyce Glink, author of ”100 Questions Every First-Time Home Buyer Should Ask” and editor of the real estate Web site ThinkGlink.com.

A service contract allays buyers’ fears that they’ll be stuck with a big repair bill as soon as they move in–if the stove and air-conditioning system break down, for example. In California, where it seems most real estate trends begin, home warranties are standard, with about 90 percent of existing-home sales including one, according to the Home Warranty Association of California.

”Of all the perks you’re going to offer, this is a cheap one,” Glink said.

On the other side of the transaction, savvy home buyers should ask for a home warranty. An eager seller is likely to throw it in for free.

Read Complete Article …

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Home warranty and homeowners insurance

Wondering what is the difference between home warranty and home owner insurance ?

Homeowners insurance covers personal belongings and the entire house in case of burglary or natural disaster such as fire, lightning, tree fall etc., but it does not cover regular maintenance and replacement costs of appliances, and that is where home warranty coverage picks up. Home warranty is a wear and tear insurance against equipments and appliances such as heater, A.C. unit, plumbing and electrical systems.

What does homeowners insurance cover, and when?

• Personal property, furniture, clothing, jewelry etc. up to some value
• Structure and contents of the home
• Your living expenses if the home is not in a living condition due to natural disasters
• Appliances are covered as well, but only in the event of natural hazard or special circumstances.
• If someone visiting your house gets injured while in your property (slipping on the icy drive way for example) and if you are sued, you are covered by homeowners insurance.
• It protects you from a variety of events, including fire, lightning, tree-fall, burglary, storms.

What does home warranty cover, and when?

• Basic coverage includes the repair and replacement of major appliances such as Heating/Cooling system, Water Heater, refrigerator, Dishwasher, Range, Oven etc. Plumbing and electrical system are also covered
  Optional coverage varies across insurance companies. Some companies cover Clothes Washer, Drier, Microwave oven, and roof maintenance in the basic coverage, but other companies charge extra.
• Coverage is generally effective 30 days from the date of buying the policy. But please be aware that claims can be denied be insurance companies for various reasons, including what they “maintenance negligence”. Please read Thigns you must know before buying home warranty article for more details

Finally, homeowner insurance is required by your mortgage company, but home warranty is optional and may not be necessary for all home owners. Please read Do I Need Home Warranty article if you are considering it.

Posted in Home Warranties, Home Warranty, Homeowners Warranty | 1 Comment »

Do I need home warranty?

Many homeowners do not need home warranty at all. With some planning and learning about your sweet and neat home, you can save some money. Get your home inspected by a reputed home inspector and obtain a detailed report. It will help you decide whether you need home warranty. Feel free to ask home inspector’s opinion about the need to buy warranty.

You definitely need home warranty-

• if any of your big ticket appliances such as air conditioner, water heater etc. are about to reach the end of their life cycle and there is a fair chance that you will need to replace them.
• if you do not want to get your hands (and mind) dirty when something breaks down.

You may need to consider buying home warranty-

• if your house is older than 10 years and you have been spending some money on maintenance
• if you are financially not prepared to handle major expenses when a system break down
• if you do not have a trusted service contractor and do not want to go through the pains of calling contractors from Yellow Pages
• if the appliances are not maintained properly

I don’t want to buy home warranty. What next?
Okay, if you decide not to buy home warranty, then follow these steps

1. Look around, get references and settle with a good plumber in case of emergency. Shop around and negotiate the rates if you can. Have a backup plumber contact.
2. Learn a little more about major appliances and pay attention to their maintenance needs. Regular maintenance is a must if you want to live without home warranty. Visit the Maintenance Tips section of our website to learn more.
3. t is a good idea to get your major appliances such as heating/cooling systems inspected by a professional every 2-3 years, if those systems are old.
4. At the beginning of each year, re-assess your home warranty needs and you may decide to go with a home warranty policy if necessary
5. Every year, save what would have been your home warranty premium costs in a reserve fund, so that you don’t have to scramble when you need a major repair/replacement. This advice is for those who do not have adequate emergency cash reserves. Others, invest your hard-saved money elsewhere for better returns.

If you have decided to buy home warranty, we recommend that you get a price quote from Home Warranty Experts below -

Home Warranty Plans - Protect Your Home Appl. & Avoid Costly Repairs. Get Covered Today!

Posted in Home Warranties, Home Warranty, Home Warranty Advice, Home Warranty Plans, Homeowners Warranty | 2 Comments »