Report: #1096279

Complaint Review: Colonial Home Warranty Group, Inc.

  • Submitted: Fri, November 01, 2013
  • Updated: Fri, November 01, 2013
  • Reported By: JG in AZ — Peoria Arizona
  • Colonial Home Warranty Group, Inc.
    1000 North West Street, Suite 1200, #711
    Wilmington, Delaware

Colonial Home Warranty Group, Inc. Con Men Running a Business Out of Their Garage Wilmington Delaware

*Author of original report: Colonial Actually Cares About Their Reputation?

*General Comment: Yet again....

Show customers why they should trust your business over your competitors...

Add my name to the list of victims of the Colonial Homw Warranty scam. After purchasing 3 policies on 3 homes from Colonial, I first needed repairs to one home's AC unit last April. The problem turned out to be a worn out bearing. Colonial refused to pay the claim unless I provided "maintenance records" on the unit. First, there's no way to "maintain" a bearing located inside the housing of an air conditioner. One day, the bearing is fine; the next day, it's worn to the extent it fails.

This "show me your records" routine is simply a scam Colonial uses to justify denial of claims. When I argued with my Colonial "adjuster", he told me to "read the contract" which, of course, I hadn't received until after I'd already purchased "coverage" (and I use that term loosely). Had my Colonial sales weasel told me at the time of purchase that the only way Colonial would honor a claim was to produce maintenance records, I never would have bought the policies. My adjuster then told HE hadn't really denied the claim; rather, denials came "out of home office".

I asked for a number to "home office" and was told "they don't have a phone" (I'm not making this up--that's a direct quote). That statement then changed to "they don't accept incoming calls". Really?  What reputable company's "home office" doesn't "accept incoming calls"? I wrote to Colonial, outlined my position and told them I'd file suit if they continued to deny my claim. I've received no response since June. Today is lawsuit day--I'm filing in my local small claims court, with the intention of getting a judgment and transferring it to...ummm...let's see...where exactly IS Colonial?  Their website says Delaware.

However, neither the Delaware Corporation Commission, Department of Revenue or Prothonotory have any records of any company named "Colonial Home Warranty Group, Inc.". What reputable company does business with no corporate footprint?  Near as I can figure, their "home office" is a couple of mutts working out of a spare bedroom or garage.  STAY AWAY from this company--instead of sending them any premiums, you may as well start a "home repair" savings account (or if you just want to waste money, start tearing up hundred dollar bills--you'll get as much "coverage" out of doing that as you will out of dealing with Colonial).

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This report was posted on Ripoff Report on 11/01/2013 11:39 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Author of original report

Colonial Actually Cares About Their Reputation?

AUTHOR: JG in AZ - ()

Wow!  A rebuttal!  Who knew there were actually live people at your company capable of responding to (now former) customers?  Clearly, you work for, or are an owner of Colonial--Lord knows no one else would defend them. Nice touch referring to Colonial in the third person (as "them" and "they").  But sorry--no sale. Don't embarrass yourself further by trying to act like you're an objective third party. You are Colonial and you've apparently been stung enough by bad online press that you now actually care about your reputation. Here's a clue: if you want a good reputation, EARN IT by delivering what you promised and by treating customers fairly. 

As to your comments, I actually DID end up sending your company paperwork affirming I had maintained the subject AC unit in specific compliance with your request and with your contract after your verbal denial of my claim (you probably tossed it in the trash will the full intention of ignoring me--which you did quite well).  I service my air conditioner myself, and your contract says NOTHING about "maintenance records" needing to be from an outside service provider--you wrote the contract; you should know that. Rather, your contract says:  " are responsible for providing maitnenance and cleaning pursuant to manufacturer's specifications, such as periodic cleaning of heating and air conditioning systems, evaporator coils, and condensor coils as well as periodic filter replacement. Colonial reserves the right to request copies of your maintenance records".  I wrote to you to affirm the unit had been maintained. I STILL received no response from your company, so your words ring hollow.

Moreover, as I said in my original comments (and in the correspondence I sent you in June), there are no "maintenance records" that apply to an air conditioning bearing inside a sealed motor. Asking for "maintenance records" that have no relationship to the problem which needed repair is simply your way of weaseling out on your contractual obligations. Bearings inside a sealed AC motor can't be "maintained". Denying my claim based on a lack of maintenance records on a bearing is like Goodyear  telling me they won't warranty failure of my tire because I don't have records of getting the engine tuned up and the transmission serviced. 

Further, your shyster phone salesman--you know, the guy who promised me the world when he was trying to get my business and my money--NEVER told me anything about having to produce maintenance records in order for you to pay a claim. So don't "wah wah wah" about me not reading or living up to the contract between your company and me; I DIDN'T HAVE A COPY OF THE CONTRACT when I bought your product. If I'd have known payment of claims was contingent upon producing "maintenance records" that were satisfactory to you (even if they were totally unrelated to the problem that needed repair), I never would have purchased warranties from your company. Trying to now rely on terms in a contract I didn't have available for review at the time of purchase is trying to enforce an adhesion contract.  I explained that to you, and I explained why that is illegal in my state of residence (with applicable case law citations) when I wrote you in June. Still, you ignored me.

Finally, your statement that "...maintaining records is a prerequisite to any warranty" is total nonsense! If my TV breaks duriing a warranty period, no one says "let me see your 'maintenance records' before I can honor your warranty". Moreover, my prior warranty company NEVER asked for "maintenance records" before providing repairs. So don't portray yourself as simply abiding by some blue sky industry standard which you arbitrarily created from thin air.

At the proverbial "end of the day", your "show me your maintenance records" line is just a scam to allow you to commit consumer fraud, plain and simple.

Now, how about making things right and paying my claim?  A $450 check will save you a lot of headache and a lot more online posts like these on other consumer websites, not to mention Better Business Bureaus in Arizona and Delaware (where you purportedly do business).  What's that you say? Don't wanna do that? OK...then how about giving me the name/address of your statutory agent so I can be sure you're properly served with my lawsuit. Maybe you can do that from your "home office" that "doesn't accept incoming calls"...


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#2 General Comment

Yet again....

AUTHOR: Tyg - ()

 Yet again the American Consumer fights against what they agreed to. You do realize that maintaining records is almost a prerequisit for any warrenty. SO I ask, where is the rip off? If they are denying your claim then its either a preexisting condition or you could not/did not/would not supply them with the nessasary documentation. All they want to do is make sure that YOU are doing your part as outlined in your contract. You expect them to just take your word on this issue. Unfortunatly YOU are not trustworthy enough for them to do this. They have to fight fraud at every opportunity. You submitting your records shows that you have done the proper maintenece as required by the contract you signed

If you did not read and understand the terms of your contract then you can not turn around and bash them for asking you to deliver to them paperwork proving you are not attempting to commit fraud. You are asking them to do thier part of the contract, and thats to PAY. You have the easiest job of all, you just have to get them paperwork.

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