May 20, 2014: A fast growing home service contract company, Sensible Home Warranty has announced that the company has closed down its operations once and for all. The company, reported to have its main office in New York made the declaration through their website announcing that they were shuttering their services.
“To our loyal customers and dear friends:
It is with great regret that we must notify you that Sensible Home Warranty has shuttered its operations. We wish you all the best of luck and thank you for your years of support.” – read the announcement on the official website of the veteran warranty company.
For the past several months, customers of Sensible Home Warranty have been reporting instances of displeasure and dissatisfaction with the services they received from the company. Despite the fact that the company has been functioning for more than a half decade, Sensible Home Warranty failed to build a sustainable business.
According to customers, the company repeatedly failed to process claims and provide adequate service. The latest reviews about the company revealed that the company frequently denied claims on vague grounds. It is worth noting that the company had mostly positive reviews in its early years. It is not clear what caused the downfall.
The Better Business Bureau (BBB) shows that over 1811 complaints were filed against them during the last 3 years of which 1037 complaints were filed during the last three months. Furthermore, it was revealed that the company had been banned in three states.
Following the announcement of their closing, customers of Sensible Home Warranty have expressed shock and betrayal through various review sites and social media. One irate customer expressed her disappointment and stated that she felt cheated as she had purchased a long term plan from the company. The customer had been trying to contact the company regarding a claim for several weeks when the announcement of the company’s closing came through.
Despite some bad PR around, the company did have a loyal base of satisfied customers who vehemently said that their services were exceptional. Some even expressed their sadness at the news of them closing down. This makes us want to believe that in spite of what the reviews on the internet say about such companies, home warranty is one industry were misunderstandings are common leading to an unpleasant interaction between the companies and their customers. Like many, a company which succumbed to infamy, Sensible too may have been judged badly.
As customers all over the nation reel in shock from the news, the company has requested that customers direct inquiries to [email protected] until further announcements are made. The company has been unavailable for a statement.
UPDATE June 26, 2014: ABC News covered a news story on this topic. According to them, you can collect refunds from the State Dept. of Insurance if you are in Arizona. Other states may or may not have such a provision.
It is not easy to recover your losses since home warranty companies are loosely regulated. Here are your choices:
Here’s an update on this news. The Nevada Division of Insurance is trying to reach out to customers of Sensible Home Warranty in Nevada who have unpaid claims against the company. All customers who fall into this category are requested to file a Proof of Claim form to the organization on or before 26 March, 2014. The Commissioner for Insurance will be evaluating the forms received for granting approval. The Division does not guarantee that a fixed percentage of claims will be paid, they have also stated that the funds available for the program are limited.