Colonial Home Warranty Claim Denials for active policy Internet

I have a 3 year warranty contract with Colonial Home Warranty and called to have a garage door opener repaired.  After two days with no response for the company I called to find out the status and was told that due to issues with super storm Sandy they had to delay my service ( I don't see how they would delay things since those were warranty type claims but insurance claims).  I inquired what other possible choices they had and was told I could get my own contractor but it would require a phone authorization once the contractor was on site.  I did just that and when the contractor arrived I had them talk to the claim department about the diagnosis of the problem.  He told them the garage door opener was not functional (motor burnt up) and had to be replaced.  They said they would have to refer it to their corporate headquarters.  I was told I could go ahead with the repair.  The claims agent took all the relevant information such as new garage door opener model and serial number.  I was told to call back in on Friday to get the information I needed to file for the reimbursement.  When I called back in I was told they closed early and would have to wait until Monday.  When I called back in on Monday I was told the claim was denied but since "I was such a good customer" they would offer me $75.00 to cover my loss of course minus the $45.00 service call fee.  Their reason for denial of the claim was that the product (Genie 1/2 hp) was due to a manufacture's defect.  And, if I wanted to dispute the claim I would have to send in a written letter or e-mail to dispute it.