Sacramento, CAWhen home owners make important purchases, they rely on home warranty insurance to protect them from outrageous costs that can arise when those purchases fail to work as promised. Home warranty lawsuits, which allege customers have had valid insurance claims denied, have been filed against multiple home warranty companies, seeking to force these companies to honor their contracts.
Some customers turn to consumer advocates to help them. That was the case when Michael Perez's hot water heater stopped working and the company they purchased a home warranty through refused to cover the repair costs (as reported by CBS Sacramento, 9/18/12). Kurtis Ming, who helps consumers with such situations, reports that Perez paid more than $400 for a warranty through Fidelity National Home Warranty to cover appliances, but Fidelity denied the claim stating the water heater must have been in good, safe working order when the contract was started.
But as Ming learned, a technician reported that the day the heater was turned on it was fine. According to Ming, Fidelity still refuses to pay for the water heater, so Perez bought a new one, but he is considering legal action against the warranty company.
Fidelity National is not the only warranty company to have complaints filed against it. American Home Shield has faced a lawsuit and American Fidelity was the subject of a CBS Las Vegas report (9/13/12). That situation involved Manny Curesma, whose air conditioning failed to work properly. When he contacted American Fidelity, he was reportedly told his policy did not exist.
American Fidelity reportedly closed shop on August 14, 2012. According to the Better Business Bureau of Greater Maryland (8/1/12), the bureau sent a pattern letter to American Fidelity Services after a sudden increase in customer complaints about the company. The bureau cited failure to respond to customer complaints, calls and emails and failure to uphold the terms of service contracts as reasons for issuing the letter. On June 27, 2012, the Florida Insurance Commissioner issued an order for American Fidelity to stop the unauthorized business of a home warranty association in the state of Florida.
The commissioner notes that American Fidelity offered a home warranty program without a license.
A statement on the American Fidelity website notes that the company closed due to "economic hardships and other factors." No word on what will happen for customers who recently paid for warranties through the company.
If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to an insurance lawyer who may evaluate your Home Warranty Insurance claim at no cost or obligation.