Okla. Commissioner Suspends Home Warranty Company's License
Texas / South Central News • June 30, 2005
The Oklahoma Insurance Department reported that Insurance Commissioner Kim Holland has suspended the license of Covenant Home Warranty Corporation.
The action will stop the Tulsa company from ...
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Subject: More like this need same action
Posted On: July 1, 2005, 9:52 am CDT
Posted By: TC1
Comment:
There are numerous home warranty co's operating in OK and other states that routinely deny valid claims or force homeowners, who are often a 3rd party to the contract, into mandatory and often rigged arbitration. As a 3rd party the homeowner didn't have the opportunity to demand the arbitration clause be stricken, and in many states the homeowner has no standing to sue because of the 3rd party status.
These warranty policies offer only illusory coverage in many instances, and are mainly a sales tool of real estate agents and home builders.
The two types of home warranty--for resale homes and for new--operate similarly. One difference seems to be that the new home warranties are less regulated. Buyers are led to believe a new home will be built right, (even if not perfect), and have great warranty coverage and great legal recourse...NOT. New homes are often defective, sometimes seriously, and the new home warranty policy is mostly a complication to their case, not a benefit.
I am one of the few who got a major claim paid on a defective new house, and I was able to do this mainly because of info from networking with other homeowners who operate the HADD site, hadd.com Had the warranty co been successful at forcing me into their biased arbitration procedure, I would have been up a creek.
These co's are IMO mostly a scam, and MORE insurance dept's should suspend their activity. People will fare better if their case is simple and not hindered by arbitration clauses and "warranties" that don't intend to pay claims.
Subject: More like this need same action
These warranty policies offer only illusory coverage in many instances, and are mainly a sales tool of real estate agents and home builders.
The two types of home warranty--for resale homes and for new--operate similarly. One difference seems to be that the new home warranties are less regulated. Buyers are led to believe a new home will be built right, (even if not perfect), and have great warranty coverage and great legal recourse...NOT. New homes are often defective, sometimes seriously, and the new home warranty policy is mostly a complication to their case, not a benefit.
I am one of the few who got a major claim paid on a defective new house, and I was able to do this mainly because of info from networking with other homeowners who operate the HADD site, hadd.com Had the warranty co been successful at forcing me into their biased arbitration procedure, I would have been up a creek.
These co's are IMO mostly a scam, and MORE insurance dept's should suspend their activity. People will fare better if their case is simple and not hindered by arbitration clauses and "warranties" that don't intend to pay claims.