Complaint Review: First American Home Buyers Protection - Van Nuys California

 First American Home Buyers Protection promises coverage when needed and promises piece of mind in large appliance breakdowns. This is a complete scam. They will do whatever it takes to get out of paying for and replacing anything they say they cover. The contract reads "The appliance is covered as long as the appliance is in safe working order at the time of coverage. This is determined by visual inspection or simple mechanical test by the buyer, seller or agent. It covers lack of maintenance, rust, corrosion and mechanical breakdown due to age." It also states it covers "all appliances irregardless of make or age."

My furnace broke down after having the coverage for only three weeks. This breakdown happened in March, on a Saturday and it was 22 degrees outside. The contractor they wanted to send would not show up until Monday. They allowed me to find my own contractor, which I did, and they shut down the furnace and provided a quote. First American denied the first quote and required a second opinion after stating they only needed one. I had a second quote done and they denied this as well. We are now 2 weeks without heat. First American required their contractor to come out. He did and then First American charged me $60 for their request. First American required that I send in my Home Inspection report. The report indicated that the furnace was in working order but recommended service by a technician due to no service records. I provided a receipt of service by a technician to First American before my Inspector inspected my home as well. We are now three weeks without heat. I called First American and told them I needed heat due to having no heat for three weeks. My family of 5 was cold and tired of the run around. No answer from First American, so I had the second contractor replace my furnace. First American then called and left me a voicemail stating they would replace my furnace. I called them and told them it had already been done and they would be getting a bill. They then refused coverage based on the furnace not being in "safe, working condition at time of coverage." We were living in the house and it was inspected and serviced before we moved in. They claim I didn't have it serviced between time of inspection and breakdown. No where in the contract did it state any appliance had to be serviced before coverage would begin. It states "visual inspection and/or simple mechanical test by the buyer, seller or agent." I had letters sent by both real estate agents, my inspector and contractor. They still charged me the $60 for their requested contractor to come out an diagnose what was already diagnosed twice before. I sent them a copy of the voicemail and they didn't even respond to that. BBB was contacted but is a waste of time due to First American being reclassified with them. My attorney stated it an open and shut case but collecting would be even more of a nightmare. The Attorney General is now being contacted due to our belief that they have violated the consumer protection act. I would love to see a class action lawsuit be brought up on this company.

All I can say is do not use, buy or sell this companies false promises. It'll be a nightmare you don't want to go through.