Home Warranty Claim Denied

Discussion in 'P&C Insurance Forum' started by capnjim01, Aug 29, 2017.

  1. capnjim01
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    capnjim01 Super Genius

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    Hi, I don't know if this is the right place to post this but this forum always has good information and ideas.

    We have a home warranty on a house in North Carolina and the air condition has gone out. We own the house there however we are living in Texas. Anyway the warranty company is deny the claim saying it is an act of God, the guy who inspected it said it was dirt in the compressor, I haven't talked to anyone yet this is from my wife who has talked to the guy who inspected the unit. I'm going to call the warranty soon and am looking for advice on how to handle this.


    Thanks
     
  2. adjusterjack
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    adjusterjack Guru

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    This is as good a place as any so let's keep it here. I am a retired property claims adjuster and might be able to provide helpful comments.

    "Act of God" is a meaningless phrase (apologies to God). Lightning is an act of God yet many insurance policies cover damage from lightning. Wind is an act of God yet many insurance policies cover damage from wind.

    Start by taking out your warranty policy and READING. Read it several times if you have to and make notes about what is covered and what is excluded.

    Note that you can attach documents to your post. If you'd like me to take a look at the policy, scan it as a .pdf and post it with your next reply.

    Then insist that the claim rep put his declination in writing with specific reasons and references to the policy provisions.

    Then you need to get an AC tech who knows what he's talking about. The AC compressor is a sealed unit. Did he actually say how the dirt got INTO the compressor and how the dirt resulted in the damage? Did he OPEN the compressor? Did he take pictures of the dirt? You are going to need a lot more comprehensive written and well-documented evaluation of the condition and damage of the AC or you will get nowhere with this claim.

    With all due respect to your wife I suggest you call the AC guy and get the specifics in writing.

    You can start by following my suggestions then coming back to this thread and report the results.
     
  3. xrac
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    xrac Guru

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    Some extended warranties are nearly worthless.
     
  4. b61mack
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    b61mack Guru

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    most likely they are saying the unit failed due to lack of maintenance. that is how they get you. If you have maintenance records. call them and problem solved, what warranty company is it, some are good most aren't.
     
  5. capnjim01
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    capnjim01 Super Genius

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    HomeChoiceWarranty
     
  6. insurancevet
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    insurancevet New Member

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    did you buy this warranty as part of the process of purchasing the home or as an add on years later?
     
  7. adjusterjack
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    adjusterjack Guru

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  8. insurancevet
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    insurancevet New Member

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    If it is sold to you when the home is just purchased then they already had the AC unit inspected by an inspector and most warranty programs only last a year and people very rarely renew them. The homes AC is not something that goes out in the first year of ownership usually. The value of a home warranty is mostly in the ability to avoid major expense in that first year of home ownership. Most warranty programs are not renewed a 2nd year and a real estate agent will offer to pay for a home warranty just to help people get over the fear of getting hit with a huge bill.
     
  9. stevegonzales
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    stevegonzales New Member

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    I believe this is a home warranty, not an insurance policy. I think your best bet is to escalate it with their managers. Success or not, make this your last year of paying for home warranty. 95% of the time, it's cheaper to just pay the contractors when something break.

    By the way, AC compressor is designed to be outdoor & can handle dust. You can just wash those dust away with a garden hose.
     
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