#20
Sat, December 08, 2001
They filed the following to the above Rip-Off Report: Their email: [email protected] Their name: CS Their relationship to the company: Consumer Suggestion Rebuttal: Home warranties sound great til you have to use them. Then most people find out they're as bad or worse than insurance companies as far as trying to get a claim paid. For starters, they pretty much have free reign because they call themselves "risk retention groups" and many state's Dept's of Insurance don't regulate RRG's. Even if the word "insurance company" is in their name they still deny they are insurance companies. Many are backed by such bogus insurance co's/RRG's which some states still refuse to recognize and regulate as the insurance companies they mimic. Another thing home warranty companies are good at is having arbitration clauses that take away your right to sue, and your right to appeal the decision. The arbitrator is usually chosen by the warranty company itself, too. And, when they decide against you, you may not be allowed to even talk about your case. That, coupled with the fact that arbitration is not public record like court cases are, makes it super easy for warranty companies to hide true numbers of denied claims or unhappy customers. Another thing about arbitration is that it does not just cost the few hundred dollars for the filing fee like they tell you; it can cost many thousands as the hourly rate for experts and arbitrators adds up. And you probably will still have to hire an attorney. They will have an attorney. Many fees are not recoverable in arbitration as they are in court, either, (should a mirical occur and you win). Stonewalling, buck-passing, denying, etc...this is all you'll get most of the time from home warranty companies.