American Home Shield - AHS Covered Item Denied on Claim Internet

September 12, 2009, a water-filled 10" A/C duct came crashing through my ceiling in the foyer of my home causing damage to my ceiling, walls, and hardwood floor.  We called American Home Shield (AHS) for the HVAC piece only.  My account is current and I have an inspection of my HVAC at least annually - so we figured that, at least, the system will be repaired.  According to my contract, it should have been.

On Friday, October 16, 2009 a service man came out from K & W Heating and Air  (Danny) representing AHS and determined that the system was pumping water into the duct caused the collapse.  AHS denied my claim and refuses my claim for replacement of the ductwork that became ripped as it came through the ceiling or to replace the water level sensor that stops AC system when the water in the condensate drip pan reaches a certain level.  AHS also refused to repair for the shielded insulation bottom on the unit itself that became a soaked from absorbing water from the condensation drip pan.

I was told that the ductwork was not covered:  The contract reads:

Duct Work:  "COVERED:  Ducts from heating and or cooling unit to the point of attachment at registers or grills and flex ductwork."

The customer service representative stated to me that we were not covered based an exclusion under "Section G, Limitations of Liability, and paragraph 5" which reads:

"AHS is not responsible or liable for secondary, incidental and/or consequential loss or damage resulting from the malfunction of any covered item including but not limited to food spoilage, loss of income, utility bills, additional living expenses, personal, and or property damage, or authorized contractor's service or delay in service."

The damage to my HVAC regularly maintained system is a direct result of the system failure and my claim is for the repairs to the system and the ductwork only.  I called AHS thinking I would get a fair deal, get my system restored to working order, and what I got was the AC plumbing lines blown out and a full course of the denials, backpedaling, rudeness, and the classic runaround.  I am not happy.   I was told that the ductwork damage was considered secondary damage and therefore not covered.   How could that be when the primary system causes the ductwork damage?  Have you ever seen a an AC system with ducts?  I pay $600 a year for this so-called coverage.  We also pay $60 per visit by persons who may or may not be qualified.  I have done this for 4 years.  I am done with AHS.

To add insult to injury, a person calls from AHS to check on my satisfaction and I am advised that if I am not happy with the diagnosis, they will send out another ("independent") HVAC firm for second opinion to diagnose the problem and if they still deny the claim, then I would pay another $60 fee.  I refuse to be screwed.

The denial of my claim is wrong, unfair and I advise anyone who considers AHS to think again.