Complaint Review: First American Home Buyer Protection

Worst home warranty of all, period.  If you are thinking about  buying from this company, read all these reviews and believe it.  If you already had this company as your warranty company, change it as soon as possible.  You are depending on parachute that WILL NOT open when needs.  This company just wants to take in the money with no intention to pay claim.  Look at their website, they have email, phone number and fax for consumer to BUY their product but they don't have any phone number, email or fax for claim.  Basically, all claim conducts via snail mail.  They just hope that you can not wait and will repair without authorization so they don't have to pay claim.  In addition, they deny claim citing preexisting condition even though we have several  inspectors, contractors and visitors to proof otherwise. They offer arbitration on their policy but did not specify detail.  We requested the detail of this more than 2 weeks ago but they ignore our request.  Very deceptive selling and claiming process.

My friend  closes on her  house in June  2014.  She closes at First American title  and First American title company sells her a First American Home Warranty.  The closing agent says as long as we have an inspection to show that the unit is in working condition, it will cover. Policy says it will cover if the "items are in safe working order at the start of coverage."

The house has been inspected twice  by 2 different professional inspectors; one by the sellers' inspector and one by our inspector.  Our inspector states that the A/C unit produces a supply of 54 degree air.  Will a defective A/C system produces that kind of air?  On top of that we have letters from visitors and contractors who work on house stating that the A/C was working when we moves in.

 About 3 weeks after we move in, the A/C does not working.  Without any pertinent information such as where or not A/C had been inspected,  their A/C guy who comes to our house spends 10 minutes to reject the claim citing preexisting condition - leak at coil.  He is more interesting in upselling the new A/C system to us at our expense rather than actually finding out what problem is.  We wait almost a month for letter from First American Home Buyers Protection to officially deny the claim.  The letter never comes so we  contact them. 

The agent on phone ask us to send an inspection report.  I just wonder how their A/C guy know whether or not it is a preexisting condition without the benefit of inspection. The agent on phone deny claim because of  air leak, we argue that it is an air leak not a Freon leak.  Suggested resolution in the report is to seal the duct with tape.  She then denies because damage to insulation to refrigerant line.  We  argue that it is damage to insulation not to the line itself.  Eventually she denies it anyway with no specific reason other than "preexisting condition."

We already protest the decision and asking for arbitration but did not hear from them yet.  That was more than 2 weeks ago.  We believe their technique is to delay claim as long as possible without considering it in good faith.  If we repair it without authorization then they can claim we breach the contract.  It has been more than 2 months now that the A/C is not repaired.

We already filed complaint with Texas Real Estate Commission who oversees warranty company. We are looking into filing complaint with California government agency and BBB also.    We are looking into the possibility of any lawyer who will take the case as a class action on our behalf.  If it does not work, we are to take them to small claim court under Deceptive Trade Practice Act in Texas which will allow us to be compensated 3 times the damaged.