A Good Home Warranty Plan OffersRisk Reduction For Home Sellers And Agents

Some 60 percent of litigation following residential home sales could be avoided if home sellers had purchased a home warranty plan, according to David Medley, National Account Manager for First American Home Buyers Protection Corp. Additionally, two out of three lawsuits involving real estate agents might also be prevented, since these claims involve failed mechanical systems, he added.

Home Warranty Factoids:

A home warranty company offers home warranty products to repair or replace appliances, electrical, plumbing, heating, and air conditioning systems on residential properties. If a home develops a mechanical problem during the first year of ownership, a home warranty will likely cover the cost of correcting covered problems, preventing lawsuits against the seller and/or agent.

Failure of mechanical systems must be the result of normal wear and tear, and not abuse or misuse.

Optional coverage may include pool equipment, water softening systems, and well mechanicals.

Comments

[Robert]

Before you post "advertisements" for First American perhaps you should check out what their customers have to say about them on this web site: http://www.ripoffreport.com/

They have HUNDREDS of unhappy customer comments. Most companies only have a half dozen or so.

I'm personally experienced the bad customer service and fraud practices of this company and I'm currently in the process of taking action against them under the Texas Deceptive Trade Practice Act. My lawyer also suggested that I file against my realtor as well, but I chose not to do so because I believe he acted in good faith recommending the company.

My point is...just because you talk your client into the home warranty doesn't absolve you of legal responsibility. If the home warranty company is accused of fraud and YOU recommended the policy then you are liable too.

Robert:
I have visited this web site and found only ONE complaint about this home warranty from a disgruntled consumer. My experience with First American Home Warranty Plan and my knowledge is quite contrary to that. There were other complaints having to do with the title insurance end of the business, which is quite a different case than the Home Warranty. At any rate, it is important to understand plan limitations before signing that dotted line in all cases. -- Fran

[Bob]

Well Fran, why don't you look up First American on epinions.com. I think you'll find your experience unique. I am currently pursuing legal action against First American for fraud and endangerment. The contractors they use are underpaid, and frequently have to "figure out" an uncovered charge so they can be paid directly by the homeowner. My lawyer and I ahve gone rounds for four months with First American, and they are starting to contradict their previous statements. Research heavily into the background of the warranty company themselves...they're simply out to make a quick buck.

[Dawn]

Bob just curious about the success of filing a lawsuit? I too have been scammed by First American. They have been avoiding our blown A/C unit for the last month. We are confined to sleeping in our living room on the floor since it's too hot to use our upstairs. I myself have health issues and this has been creating havoc on me. I figure at this point I should cut my losses and buy a new unit myself but what kind of recourse can I take against them?

[C Car]

First American Home Warranty is a scam. The rudest customer abuse I have ever had on the phone. When reporting a plumbing issue where leaky drain pipes in an upstairs bath caused ceiling damage in the room below, the customer abuse rep said they could send out rotorooter to unclog a toilet, but that pipes would not be repaired and any "secondary damage" would most certainly not be repaired by this 'warranty scam" company. It may sound like a good idea, but home buyers would come out better repairing problems themselves. My money spent at the purchase of my home on this program was completely wasted.

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[Evan Tobin]

First American Home Buyers Protection is a total ripoff and a scam. I bought a 20 year old house and paid for a home warranty with them. Both of my furnaces were acting up so I placed a claim. They dispatched a rinky dink hvac company who said my furnace needed to be cleaned and maintenance wasn't covered but were more than willing to collect my $55. They also said First American only listed one furnace on the work order and they couldn't work on the 2nd one. I had another company come in and do the maintenance and they cleaned the unit and told me the CO levels indicated a cracked heat exchanger and should warrant a repair or replacement furnace. I had FAHBP re-dispatch to look at both furnaces and again the service company said only one furnace was listed. They agreed my furnace had high CO levels and would need to be replaced and they turned it off and left. Now first american claims that I will need to pay over $1000 to get a new furnace installed because ducting, plumbing and electrical upgrades are required. They say if I want a payout, they will pay me only $479! They want me to pay over $1000 and they're only kicking in $479! Total ripoff. They still haven't gotten someone to look at my second furnace! They are the pits! Biggest Scam I've ever seen! Do not use FAHBP.

[mary]

I've tried both First American and American Home Shield. Unfortunately, I notice its a hit or miss, depending on where you live. Sometimes the contractors are knowledgeable and good, sometimes not. (i.e the plumber may not be good,the electrician is great). What I do now is once they give a name of a contractor I check first thru BBB.org (better business bureau) if they have a lot of complaints I would call back and request for another contractor. You probably don't need one if your home is fairly new and appliances are still under warranty, but just one replacement does cover up your annual fee. Also if you show courtesy to the customer rep, (this is like yelling at the flight attendant for a cancelled or delayed flight, do you think he/she caused it and will be more likely to help you if you yell?). I had an issue when the first plumber said there was no mechanical defect but I knew there was something wrong. She said she can send a 2nd opinion free of charge (the 2nd plumber found the leak).

[Wendy F]

Everything Residential is absolutely awful! I have been without a dishwasher for over 5 weeks. I swear it is a stand off to see when I will get fed up and buy myself a new dishwasher. Very sad! I had major surgery on my neck and have a family of 4 take care of. Not that they care!

[condo for sale philippines]

I've just read the comment by C car about the First American Home Warranty and i just realize that even Home warranty can be used in these crimes.. I hope everybody will be cautious about this..

-david

[Home Inspection Tampa]

I guess that now days there are a lot of real estate agent companies which are not paying proper attention to the interest of their customers in order to earn their profit. I am sure many people would get warned now.

[New York Mold Inspection]

Sounds good to have a warranty cover for the home and the appliances.

[Mold Removal]

Reduction of risk sounds good.It is a very difficult thing to buy a home and make a god deal out of it.

[Air Conditioner Repair St. Pete]

Good service on a certain company is important to me.

[used computers]

I think small machines are more powerful than large ones perhaps a million times more powerful, and 100 times stronger. Also, precise surfaces can have extremely low friction and wear. these products could include large numbers of small, high performance machines.

[land for sale Philippines]

I agree with his point is it just because you talk your client into the home warranty doesn't absolve you of legal responsibility. If the home warranty company is accused of fraud and you recommended the policy then you are liable too. Thanks for the post very interesting.

Mitch

[NYC HVAC Contractors]

This is a really great article. We need to be able to inform people of what they can do on their own to help them save money. Many people do not know of all of the little tiny adjustments that they can make to their lives to help save them millions in the long run.

[Manhattan Air Conditioners AC Units]

Services are more important than other factors, in fact it comes first.

[Torrent Download]

I swear it is a stand off to see when I will get fed up and buy myself a new dishwasher. Very sad! I had major surgery on my neck and have a family of 4 take care of. Not that they care!

[charleston defense lawyer]

Make sure that you get the right lawyer that can help you when the time comes. You will have much confidence when you know you're in good hands.