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Question DetailsAsked on 5/26/2011

How can I sue my home warranty company?

I got burned by a home warranty company in New York. Does anyone know how to take legal action against them? Would it be small claims court?

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4 Answers

1
Vote

If the amount you believe they owe you is within the amount allowed in NY in small claims actions, that would be the appropriate venue.

Answered 6 years ago by KAT7

2
Votes

If NY home warranty companies are licensed by a local or state governmental agency, file a complaint with them in addition to your local area Better Business Bureau. Often public records are what other homeowners depend on until they join Angie'sList.

Answered 6 years ago by tessa89

0
Votes

Is this a Home Warranty for a resale or a new construction?

New Construction- you may have more leverage to get your money in the courts. They mostly look in the direction of the home buyer in that the home was purchased new.

If you got the warranty at closing (from your agents referral) of your resold home you may have an uphill climb. Most of the Home Warranty companies are license insurance companies in the state and their contracts are written on their behalf. I have been in court and viewed a few cases where the evidence on what they agree to fix and the existence of a preexisting condition caused the judge to view in favor of the Warranty company.

A lot of warranties are sold on resold homes here in Indianapolis. The biggest mystery here is that the buyers got the warranty pitch from their agent and didn’t know that the agent sold them a concept to “make money”. Yes that’s right most agents receive $50-$90 per transaction. At the present time those commission are not required to be identified on the HUD-1 statement at closing.

In the end I feel that most buy a warranty to feel warm and fuzzy at closing. There has been many cases I heard that the company doesn’t cover “this or that”, but then again I have had only a few people tell me they read the policy before closing.

Answered 6 years ago by JSlimak

0
Votes

"

In the end I feel that most buy a warranty to feel warm and fuzzy at closing. There has been many cases I heard that the company doesn’t cover “this or that”, but then again I have had only a few people tell me they read the policy before closing."

I'm with you. It sure sounds nice to have everything "under warranty," but if you read the warranty you'll find that very little is actually covered. In most cases major systems have to fail completely in order for the warranty to kick in, and even if that happens the homeowner is locked into using the company the warranty company sends. In a lot of cases the resulting repairs or replacements are not fully covered and in fact may only have a "$50 discount" or similar, which is highly suspect.

Of course every home warranty is different, but no company would make money if it provided 100% insurance on everything that might go wrong. And since most policies cost about $200. . .well, you might just end up getting the value of it back, but probably not much more. We turned down the home warranty offer when we bought our new house in lieu of $200 credit, and we are not offering one on the house we have for sale. My personal feeling is that they are a scam.

Answered 6 years ago by Commonsense




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