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American Home Shield Informative - How to Beat Home Warranty Companies at Their Own Game - Part II - American Home Shield Home Warranty
American Home Shield Home Warranty
(The following information and advice applies to American Home Shield. Whether or not the advice applies to any other home warranty company is unknown.)
I recently observed a trial in which AHS was being sued for denying a claim. After the trial, I had an opportunity to talk with the attorney who had represented AHS. The attorney advised me that AHS always settles the lawsuits or pays the claims when sued. Regarding class action lawsuits, whether the person remains part of the class or opts out is not relevant to the outcome of the case; AHS does not use a pending class action as a defense to settling the case. What this means is that if you sue AHS, you will get your money back. The only losers are the aggrieved homeowners who do not sue.
Although I had long suspected that AHS made little or no effort to contest lawsuits filed against the company, my advice to anyone who has a claim denied is not to waste time trying to make AHS either repair or replace an appliance. Have the appliance repaired or replaced at your own expense and then sue for reimbursement. This same advice applies to what you consider to be an emergency situation or an unreasonable delay by either AHS or the service contractor in repairing or replacing an appliance or approving a claim.
You are also likely to be more satisfied with the service contractor and the appliance you have selected as a replacement than the below builder’s grade of appliance provided by AHS. You will be able to hire the repair company of your choice and choose the color, make, and model of the new appliance. In the few instances I have read about when AHS has replaced appliances such as A/C units, furnaces, refrigerators, and stoves, the replacement item has always been substandard. In one instance, the A/C unit AHS used to replace the old unit was so noisy that the homeowner could not hear the TV over the noise.
When a claim is denied, if the homeowner sues, the homeowner wins. If the homeowner does not sue, AHS wins. I am encouraging everyone reading this who has had a claim denied to sue AHS for reimbursement. I also suggest anyone who sues AHS to attach copies of your receipts to the complaint because that is what AHS will want to see before making an offer to settle. Also, sue only for your out-of-pocket expenses; do not expect to be compensated for loss of time from work or for punitive damages. Do not let AHS win; beat them at their own game. LegalCohen@aol.com
I recently observed a trial in which AHS was being sued for denying a claim. After the trial, I had an opportunity to talk with the attorney who had represented AHS. The attorney advised me that AHS always settles the lawsuits or pays the claims when sued. Regarding class action lawsuits, whether the person remains part of the class or opts out is not relevant to the outcome of the case; AHS does not use a pending class action as a defense to settling the case. What this means is that if you sue AHS, you will get your money back. The only losers are the aggrieved homeowners who do not sue.
Although I had long suspected that AHS made little or no effort to contest lawsuits filed against the company, my advice to anyone who has a claim denied is not to waste time trying to make AHS either repair or replace an appliance. Have the appliance repaired or replaced at your own expense and then sue for reimbursement. This same advice applies to what you consider to be an emergency situation or an unreasonable delay by either AHS or the service contractor in repairing or replacing an appliance or approving a claim.
You are also likely to be more satisfied with the service contractor and the appliance you have selected as a replacement than the below builder’s grade of appliance provided by AHS. You will be able to hire the repair company of your choice and choose the color, make, and model of the new appliance. In the few instances I have read about when AHS has replaced appliances such as A/C units, furnaces, refrigerators, and stoves, the replacement item has always been substandard. In one instance, the A/C unit AHS used to replace the old unit was so noisy that the homeowner could not hear the TV over the noise.
When a claim is denied, if the homeowner sues, the homeowner wins. If the homeowner does not sue, AHS wins. I am encouraging everyone reading this who has had a claim denied to sue AHS for reimbursement. I also suggest anyone who sues AHS to attach copies of your receipts to the complaint because that is what AHS will want to see before making an offer to settle. Also, sue only for your out-of-pocket expenses; do not expect to be compensated for loss of time from work or for punitive damages. Do not let AHS win; beat them at their own game. LegalCohen@aol.com
Comments:
Posted by UncleH on 2010-05-26:
I respectfully question the author's true motives, I see from the email signature that they are probably an attorney......
Posted by Soldbydon on 2013-03-20:
I was an AHS Sales Rep - direct employee - and I generally agree. I was asked to attend a pre-trial hearing on an A/C unit that had been covered by AHS for years but when it failed, AHS initially refused to pay because the A/C unit's exterior casing was rusted, rendering the unit inoperative. "Rust" and other "pre-existing conditions" are not covered by the warranty. AHS settled rather than go to court. BUT! The offer from AHS was a return of premium paid (about $400) rather than replacement of the A/C unit. Read the fine print - depending on the policy terms they can likely make that offer and it will stick. I rarely ever saw them pay a claim that was more than 3 times the amount of the premium paid in because they have limited their liability by stating limits of repair/replacement costs they'll expend under the warranty.
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