Home Warranty companies have poor customer ratings.

Home Warranty Companies have poor customer ratings.

Posted on 2013-03-16 09:37:18

Home warranty companies are not darlings to home owners. Many realators offer Home warranty as a lure to closing home purchases but beware; these companies not bare any responsibility for your home or appliance defects and have the power to choose the covered components they care to accept. Below is a link to compliants filed around the country regarding Home Warranty concerns.

http://www.ripoffreport.com/Home--Garden/Home-Warranty-Companies/Search.aspx?p=3

Off course the Warranty Companies are not at fault for every complaint. But the industry is plagued with bad reputation. I understand the high rate of consumer dissatisfaction due to the following observations:

The Warranty company sells the home owner a maintenance contract without inspecting the home and appliances.

1. The Warranty company depends on repair personnel competing heavily with the prices of other contractors for service jobs.
3. Warranty companie rate service contractors by cost.
5. Warranty companies determine the time required to complete repairs and structure their pay accordingly.
7. Home Warranty compaines discourage replacement to favor repairs.
9. Home Warranty companies favor after market components instead of manufacturers replacements.
11. Home warranty companies pay well below market costs to contractors.
13. Many home warranty companies delay payments to contractors 30 to 45 days after the service is complete.

Summary: Home Warranty companies nickle and dime both the customer and the contractor. The sad thing is these companies are located out of State or far from the reach of the customers. Hostilities from affected customers are borne by the service provider who has spent is resources to aid the home owner not knowing when or if he or she will be paid.

 

Be sure to accertain service providers are licensed by your State and are members of a monitoring institution like Better Business Bureau. You can full around with refering companies at your peril. In Texas I depend on TDLR and BBB in my city only for company references. Some companies go to BBB outside the areas where they conduct business. This should be a red flag to beware.