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Is it Worth Suing a Home Warranty Company?

Every year, thousands of companies get sued. This is due to a number of reasons such as defective products, poor service, harm that it could cause to you or your properties and others.

Sue a Home WarrantyIn case your home came with miserable surprises like broken mechanical systems, dishwasher, air conditioner or other defects, the financial liability may not be yours alone.

Such problems may come to light days, weeks or years later, leaving you speculating whether you have to shoulder entire financial burden. Indeed in such cases, you may be able to ask the responsible home warranty company to pitch in. Home Warranty Protection Policy is designed to protect you from unforeseen repairs and if something happens to any of the items during the warranty period, the cost should be covered. Ideally, you will be able to resolve matters without filing suit in court. But this article will start by examining whether a lawsuit is possible, so that you can work your way up to one, if need be.

Dealing with a company that proves unreliable in its business practices can be irritating and stressful. If you have bought services or products that include a warranty and the company will not honor the warranty when necessary, a consumer has way out through support from the Better Business Bureau and with the law. Learn whether it is worth suing appliance service companies and protect yourself from dishonorable companies.

 

How to deal with a Warranty Company for Non Coverage on a Stated Covered Part in a Legal Contract?

Don’t get emotional about the issue. You should file a suit only if you exhaust all other options explained below.

  1. You will have to threaten to report them about filing lawsuit and going to the media. You will actually have to get tough with these people.
  2. Contact State Attorney General: If no response comes, talk to a local attorney with your particular facts.
  3. Contact State Insurance Agency: If your attempts to settle the dispute are ineffective, you should determine whether your case is one that should be handled by a state insurance agency or you want to pursue other alternatives.
  4. Contact BBB: After your complaint is forwarded to the Better Business Bureau, it will be reviewed, and assistance will be provided to help you receive the warranty benefits you were promised.
  5. Small Claims Court: In small claims court, the amount you seek to recover cannot exceed $10,000. In case the seller refuses to honor the warranty, you can file a claim in small claims court only if you are over 18 years old.

How to File a Lawsuit Against Home Warranty?

Suing a Home Warranty CompanyFor filing a lawsuit against home warranty company, you have to first hire a lawyer. Before you spend thousands of dollars over a few hundred bucks in AC repairs, you likely need to read your warranty, and see why the warranty company denied coverage. You must find out the basis of denial. Have them send you the reason for denial in writing along with a copy of your policy. In case the denial is legit – it’s a waste of time to file a suit because you would lose.

If you still want to file a lawsuit, you have two options.

  1. Go to your local magistrate court and file there. That’s “small claims” or People’s Court where you don’t need an attorney but have to represent yourself.
  2. If you are looking for more than the maximum amount allowed by small claims court you will need to hire an attorney. Get the policy and the letter from the insurance company with you. In case you find that no attorney will take your case then that’s a sign you don’t have a case.

If you actually read your policy you will see what your options are. Suing is not the option. If it isn’t covered, it isn’t covered!

 


Recent Comments
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Susan W
22-08-2016
I have Global Home Warranty, who wrote me a warranty based on the home inspection done on my home. My home inspection has since been cancelled, voided, and is no longer accessible. My original question to them was whether they would still cover the warranty. After much talking by. I think his name was Charles something or other, the only thing of substance that he said was that they would no longer work with my inspector (who'd done a very terrible job). When I had to have air conditioner work, call out on weekends is at their discretion, despite NJ state law that states that it creates an emergency in summer months, they chose not to call anyone out (Alex was the rep's name - this is a two or three person company in Austin Texas), so I did the repairs myself. When the next payment came due, I withheld it, waiting to hear as to whether they would honor my warranty. I was also told by the Dept of Consumer Affairs that I needed to get them to state in writing that their warranty was still in force, something Charles would not state.
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Manoj . Thampan
16-08-2016
My issue is with Delta Home Protect. I have 2 AC unit at my home. I live in Dallas. One of my unit is not working. I have a 3 year old baby. This is more than 2 weeks I filled a claim. I call the customer service every single day 3 times. All they say is they going to find a contractor and they are working on it. They said their manager Tony is the one working to find a contractor for past 2 week. When they see my phone number, they wont answer my call. I have to use different phone numbers. I had choice and AHS before and they were excellent. I paid for next 2 years and now I am not with AC for past 2 weeks with a 3 year old baby in Texas.
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Tony abajian
06-08-2016
My issue is with choice home warranty, this company sucks they always find a way not to pay, I have them for years it's really waste of money hope the will go under, bunch of thieves. I'm going to try to sue them.
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Betty Vaughn
10-07-2016
My issue Is also with Choice Warranty. the broiler element burned out in our stove on the 4th Of July. I contacted Choice the same day. they did send out a technician the next day and he did a diagnosis which stated a new broiler element was needed. For this visit the fee was $45, which we paid by check and which the tech promptly cashed. The tech never contacted Choice nor us. I advised Choice and they indicated they would contact the tech. I called back to check numerous times. Finally Choice's reply said they would find another vendor to come out free of charge since we had already paid. I continued to contact Choice for the remainder of the week to no avail. Each time I called there was a wait time of 45 to 60 minutes. I finally called another company. The tech came out, talked to the tech and Choice determined we weren't covered as maintenance wasn't kept up. We've had the stove 16 years. That fee was $54.95 which we paid. Now we're out of pocket $99.95 with no resolution. I have been a member of Choice since Dec. 30, 2015 and never had filed a claim. The tech I called quoted a price of $622.93. Choice never called back about finding another vendor and we're quick to turn us down. I informed the report.
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Linda
07-07-2016
My issue is with Choice Home Warranty. They sent a Plumbing and Heating company out to look at my air conditioner. My compressor is gone and I have a letter from the Plumbing and Heating company saying it quit due to wear and tear and old age. The warranty company said "their technicians" have looked over the report and they have determined that it stopped working due to lack of maintenance and care. I said how can the couch technicians even give a diagnosis when they haven't even looked at it and why did you send the Plumbing company if you weren't going to go by their report. I told them if it was an inexpensive part they would have taken care of it. Unbelievable! The air conditioning system is over 20 years old and also as I told them, you can't do maintenance to a compressor, just change the filters and keep the coils clean. I'm going to the BBB and Attorney General. I will also go to a lawyer and go to small claims court. They are a true scam company, don't go to them. Wish me luck!
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Don
28-06-2016
My issue is with First American and it basically mirrors everything that is being said about other home warranty companies. Weeks go by before any resolution is reached and I'm usually out time and money when we get to that point. This time I am going to small claims court. I don't even care about the outcome. Just making them do something and appear in court is worth it at this point.
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Candace Riggs
15-06-2016
Currently trying to get my AC unit working properly. My home warranty is with American Home Shield and they keep sending out techs that say there is nothing wrong with the AC unit however with the air being on all day the temperature inside my home has only gotten hotter. Outside temperature is 86 degrees temperature in my home with A/C on is 77 - 78 degrees after the air has been running for 12 hours.
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Param
31-05-2016
My problem is with American Home Shield. There was a water leak in the garage coming from the A/C unit. I called AHS, they dispatched a contractor who cut open a sealed a/c compartment right above the furnace and told us that a connector pvc pipe is broken causing the leak. He said his boss will be working with the insurance company to get approval for the repair. We get a call from the insurance company (AHS) that contractor told them the pipe is broken and does not look to be normal wear and tear. The pipe is about 8 feet high and we know that nobody in the house touched or came near that pipe. We called AHS and they dispatched another contractor for second opionion. This new contractor seemed more smart and intelligent and said that there may be a possibility to get a metal connector installed to seal the broken pipe but he will need to talk to insurance for approval. After 3 days, we called to follow-up and were told that insurance will not cover and that we should follow-up with them. I will be talking to the insurance guys again tomorrow to understand the reason for the denial. If they continue to stick with their stance that damage is not due to normal wear and tear then what are my options ? How can a contractor determine whether it's normal wear and tear or not. the unit has been installed for 10 years and it's plastic which can break. I don't think there is any magical formula or view that can surely categorize the damage due to not normal wear and tear and how do I know whether the former tech not break the pipe when he was cutting the cover of th condensation unit to determine the problem. maybe he pressed hard and the pipe broke. Any feedback or suggestion would be appreciated. Thanks
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Karl Smalls
23-05-2016
I have a warranty with American home shield. I had someone they sent over to look at my airconditioner in summer of 2015. The tech told me I needed free on. I had to pay for sis pounds at 65.00 per pound. The following year I turned on my air conditioner in May 2016. The home warranty sent over air conditioner tech, he then say I need free on. 8 pounds at 65.90 per pounds. American home shield want to pay for the free on. This is not right. There's another problem and metro air should have taken care of the problem last year. I shouldn't have to oay for free on again. I need a lawyer. I will call the better business bureau.
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R. Williams
14-01-2016
I have Choice Home Warranty. This poor insurer decides based on two issues that had nothing to do with each other were not going to be covered. They decided to cover one part of the heating system's issue and not the other. I say putting them out of business would be a great plan of action if needed. They always come up with reasons not to cover.
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