Problem Solver: Home Warranty Complaint

By Dianne Derby
Anchor
Published: December 2, 2008

Home warranties…are they worth the investment or just a waste of time and money?  7 On Your Side took that question to our legal expert after we continued to get complaints about American Home Shield. What we found out may surprise you. Dianne Derby has more in this 7 On Your Side Problem Solver.

Every few days Jenny Chhim packs a bag of her family’s belongings to take to her mother’s house where she’s lived for the past 6 weeks. She says her house is too cold inside to bear with a newborn and 4-year-old little girl.
“It’s so cold that our thermostat is reading 50 degrees,“ said Chhim.

Jenny and her husband, Bakna, blame it all on their home warranty company American Home Shield.

“We paid them, they took money out of our pockets, so we expected them to take care of us and they’re not doing that,“ said Chhim. “They’re just leaving us out in the cold.“

They say AHS told them they had to order a part to fix their heating problem but it could take up to 10 weeks to get it!

“We were just like why so long and they couldn’t give us an answer,“ said Chhim.

We took their contract to News Channel 7’s legal expert attorney Ken Anthony.

“There’s no limitation on how long these folks can take to fix something,“ Anthony said. “It excludes what we call consequential damages meaning if these folks happen to move out of their house for an extended period of time there’s no way to be compensated for the hotel, for food, or other things they have to buy to be out of a home.“

Anthony says home warranties are useless.
“I would not spend my money on a home warranty because the odds are you’re going to wind up paying another contractor to do the work,“ said Anthony.

In this case, Jenny and Bakna won’t have to hire someone else. AHS told us they’ll be covering the cost to replace their gas-pack unit including items not covered under the warranty. Plus they’ll get reimbursed for space heaters they’ve purchased.

AHS issued this statement to WSPA-TV via e-mail:

“American Home Shield is committed to providing a positive customer experience.  Ms. Chhim’s recent experience was not representative of the normal AHS customer experience and we sincerely regret the delays in service she has experienced.  Because of the extreme part delays and complications experienced in attempting to order the replacement part, AHS has chosen to replace her entire gas-pack unit.  Working with Restoration Heat and Air, AHS will cover 100% of the expense related to the replacement and installation of her new gas-pack unit, including $350 toward items that would not normally be covered under the terms of her warranty.  As gestures of goodwill, the company will also reimburse Ms. Chhim for her trade service fee and space heaters used to heat the home in the interim.

Restoration Heat and Air has scheduled to install the new gas-pack unit tomorrow morning.  American Home Shield will continue to work with Ms. Chhim and her family to ensure this matter is resolved.“

“I just want them to get their things straight,“ said Chhim. “There are people out there that are depending on them. Do your job.“

If you do have to make a warranty claim here’s what the FTC says you should do:
-Put your request for repair in writing and request a return receipt even if the company provides a hotline to call.
-Keep a record of your correspondence and conversations with the company.
-If you have trouble contact the FTC at 1-877-FTC-HELP (1-877-382-4357).