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Warranty Companies on Most Complained List Again

The leading real estate portal Angie's List has released its 2010 annual list of best and worst rated companies based
on member surveys. For the sixth consecutive year, home warranty companies topped the worst-graded categories
list compiled by Angie’s List! Fifty-four percent of the consumer reviews submitted by Angie’s List members who’d
bought a home warranty and reported on their experience in 2010 gave their company D or F grades. Property
managers maintained the dubious distinction of being the second most often complained about service, and four other
services repeated their appearance on the highest complaints list. Here is the list.

Visit Angie Hicks Blog to read the complete article

Angie’s List 2010 Most Complained About Companies

1. Home warranty companies
2. Property management companies
3. Internet service providers
4. TV cable & satellite providers
5. Wedding professionals – bridal and tuxedo shops, planners
6. Dry cleaners
7. Phone services
8. Auto sales
9. Car services – limos and taxi services
10. Florists

Do not rely on home warranties to cover problems after you buy the house. Many of these warranties are written so
the problems will be denied, you will give up dealing with the company because of poor customer service, or you will
have to pay additional money for the repairs. Some of these companies deny your claim because the product was not
serviced regularly, correctly, or you may not have proof that it was serviced at all. An item may have to be brought
up to current building or plumbing codes before the warranty repair people can address the warranty portion of the
problem. You, the homwoner, are responsible for paying to get it up to currrent code in order to faciliate repairs.
Many warranty companies hire local sub-contractors to do the work. They dictate what they will pay contractors for a
particular job or item so the incentive is very great for the contractor to sell "add on" items or services at far above
current local market prices to the homeowner in order to make up for the shortages the warranty companies force on
them. Remember the "bring it up to code" issue?

There may be some good companies but many sources say that this is the most complained about service of
homeowners. Have an inspection before you buy the house. There are many places on the internet to get
information and reviews on these companies.

Here are some links or you can Google; "home warranties good or bad";
my3cents.com
Home Warranty Pros and Cons

Just some of the companies Home Owners have complained about:
American Home Shield
Old Republic Home Protection
America's Preferred

Home warranties have become a popular sales tool in the real estate industry, touted by sales agents as a low-cost
way to make a house stand out in a crowded market. American Home Shield said in documents filed with the
Securities and Exchange Commission it serves 1.3 million homeowners, amounting for more than 35 percent of a $1.3
billion market. But interviews with consumers, real estate agents, attorneys and consumer advocates across the
country show the largely unregulated industry is clouded by complaints of poor service, questionable practices and
in some cases, alleged fraud. Many consumers are finding home warranties are often a bad deal.

* $225m in home warranty premiums were collected, but only $16m paid out in claims
* The premium-to-claim pay out ratio is well below normal

Dawn Inserra thought she had all the bases covered when she purchased her first home in July. She said she hired a
home inspector to survey the 35-year-old, three-bedroom ranch in Toms River for any hidden deficiencies and
followed him around for four hours. Then, there was a one-year home warranty the seller threw in as a closing gift,
just in case anything major broke. Sure enough, two months after she moved in, Inserra said her furnace stopped
working. A local contractor concluded the furnace was on its last leg and could potentially leak hazardous carbon
monoxide through the ductwork in her home. She said she expected the warranty company, American Home Shield,
to pick up the tab. Instead, she said American Home Shield, the nation's largest warrant company, initially refused
to foot the $4,000 bill to replace her furnace because, a service representative told her, the heating system had not
been maintained properly. The company declined to comment on this specific case and eventually paid a portion of
the cost after she complained to her Realtor. But it still rankles the 29-year-old Inserra. "When I bought the house it
came with the warranty, and I was reassured that I wouldn't be stuck with any huge unexpected bills and it turns out
to be the opposite," she said.