I have been a loyal customer to AHS (American Home Shield) home insurance company for 7 years. I have promptly paid them $38.00 per month and have had very few claims (possibly 3 at the most over all these years).
In my insurance policy it clearly states the items that are covered and items that are not. Under items covered is my water heater. However, when I called AHS and they had a plumber come out to check my water heater, although he said I definitely need a new one, he also said it was loud and there was probably lots of sediment in it. He said since it was an old water heater, that was not uncommon but what happens is the heating element starts going out and then the water heater cannot sustain the heated water. Which is exactly what is happening.
There are loud popping noises coming from it (which is why, one year ago, we flushed it out, but it still made the popping noises) but the water is hot for only awhile then it turns cool. It doesn't even have enough hot water to last through one short shower.
When the plumber contacted AHS saying I needed a new water heater, all the AHS representative didn't even listen to the entire problem from the plumber. All he heard the plumber say was that there was sediment -- the next thing he was going to tell them is that the heating element is probably going out and recommended that they replace it. They denied coverage IMMEDIATELY.
I called and talked to two supervisors -- I was SO frustrated. My policy states clearly that Water Heaters are covered -- all components, etc. When I told the supervisors this, they said that since there is probably sediment in the water heater (which happens to any older water heater) they would not cover it. Whether it is not working properly and heating the water properly or not, they will not cover it. The supervisor told me that although it states it is covered under the "Water Heater" section, if I look in the back of the policy, there are exceptions which state they will not cover anything if it has sediment. It doesn't even actually mention the water heater in that section -- it's just the exception section.
The supervisor said I could have another plumber come out for another opinion but that I would have to pay another $55.00 for them to come out and since I already paid this one $55.00 for nothing, that would mean $110.00 out of my own pocket even if they still denied the claim. I do not want to do that. I don't have that kind of money.
Since they will not cover it and would not cover a couple of other items I have called about in the past, I asked if I could just cancel my policy now. I pay $38.00 a month for nothing. The supervisor said that no, I could not cancel it because my policy term is not over until May 2008.
All I want to do is cancel my policy, save myself $38.00 per month so I can pay for my own repairs. This is SO ridiculous. I am so angry that I have to continue paying this company $38.00 per month when they do NOT stand behind their contract.
When I asked for their corporate number or legal department, the supervisor would not give that to me. They said they will not give that out. Well, no wonder!
Anyway, is there anyway I can cancel this policy now and quit paying for nothing?