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Sensible Home Warranty Comes To A Screeching Halt

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.

Growing discontent among customers

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.

Sensible Home Warranty

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.

Did Sensible Home Warranty deserve this Fate?

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.

 

What Choices Consumers Have Now?

It is not easy to recover your losses since home warranty companies are loosely regulated. Here are your choices:

  1. Make Sure You Have Adequate Coverage – First and foremost, it is important to make sure your appliances and HVAC units are protected. Since you no longer have the coverage, you should find a reputable home warranty company on our site, request a quote and then buy a home protection plan. Make sure you are covered from day one, by showing them proof of coverage from the now defunct company.
  2. Recover Your Losses – Contact your State Insurance Department and find out if they can recover your costs from the company. Some States do require companies to put down deposits, so if you are lucky, you will be paid from those reserves. The other option you can pursue is to hire a lawyer and go after this company’s assets while the company is still going through the bankruptcy process.

UPDATE 09/26/14:

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.

For more information, check the Nevada DOI press release.

 



Recent Comments
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A Glance At The Home Warranty Industry In 2014
08-05-2015
[…] Warranty, a fast growing warranty provider made an announcement through their website stating that they were closing the shop for good. While reports of dissatisfaction among customers of the company was widespread, nobody was […]
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Lynn
16-04-2015
I purchased a 3-year plan for $669 on Dec 3, 2013. I used their service once and they denied the claim. Then today when I made a call to their company for a second service call, I found out they are no longer in service. What am I to do about the money I paid for the 3-year plan?
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Lucretia 1/15/15
15-01-2015
I'm in the same boat as Angela. I renewed my contract for 2 years in March of 2014 and they went out of business in May of 2014. They had to know this was on the horizon, and no warning or messages about any of it. This is absolute theft, who has $650 to just give away for nothing in return. I'm a retired veteran, living on a very fixed income!! Now here in the dead of winter when I need them for a service I have to come out of pocket for more money to hire a contractor. This really hurts and is despicable customer service to say the least. Can we at least get some clear guidance on whether any of our money can be refunded?
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Angela
12-11-2014
Oh boy was I had! My existing policy expired on May 21and so the new one with Sensible Home Warranty states it starts of that day. And they went bankrupt the day before. And one doesn't know this until need for a possible contact. I never received any notification and feel my money was taken under false pretenses.
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Aj P
25-07-2014
I have subscribed for 3 years plan and prepaid everything, after hearing the news I have sent an email and got a reply from company stating to dispute the transaction with my credit card company and they would honor the dispute, since transaction is more than a year old CC company denies for dispute, so don't know how to recover money for remaining years
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Loraine
30-05-2014
Sensible Home Warranty closed its doors with NO notification to its clients. My service contract was not to expire until July 1, 2014. There was also an open call that was not resolved. I contacted the company via the email address on the website & I have not received a response. While I have not needed them but twice in the 3 years I have been a client, I have found them to lack accountability as they fail to provide the proper follow up services. After my most recent experience, I already decided to not resign once my contract expired. But now I am out of 2 1/2 months of the coverage I paid for -- with NO sign that I will receive a prorated refund for the cover I am not going to receive. The way Sensible Home Warranty "shuttered" its operations was very much in line with how it ran its business -- unprofessional and little to no regard for its customers.
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