First American Home Buyers Protection Corporation Free Money for Nothing in Return Nationwide

I closed on my new home on 17OCT2016. The seller purchased a home warranty from First American Home Buyers Protection Corporation (FAHW) to transfer to me at closing. After moving into the home that day, I noticed the Master Bathroom toilet leaking so I turned off the water cutoff for that toilet. On Sunday, 23OCT2016, I went to check about the leak with the toilet tank. I turned on the valve and the CPVC line snapped behind the wall at the toilet. I looked inside the house for the house cutoff and went under the crawlspace to find it. In the dark, I lightly touched the line at a second expansion tank and that water line snapped also. I had to turn the water off at the street. The bathroom upstairs and carpeting in the bedroom got wet as well as the ceiling downstairs, light fixtures, and fan downstairs in the foyer area. I called the FAHW to file a claim due to the brochure I was given at closing because it clearly states on the front bottom of the cover that "COVERAGE OF UNKNOWN CONDITIONS which can include rust, corrosion, sediment and problems due to lack of maintenance " as well as "Plumbing System includes polybutylene piping" but was told then I could not file a claim since payment hadn't been received from my closing attorney. My agent contacted my closing attorney and their office contacted FAHW and only then was I able to get online to file a claim. The site info said that "Coverages Ordered, Eagle Premier + Sellers Coverage, Your contract includes coverage for the following items: Seller/Buyer Plumbing System". A plumber was sent from FAHW and the plumber assessed and submitted to them photos as well as info about the state of the CPVC and water damage. My claim was denied 25OCT2016 because it was stated by FAHW that "this was not usual wear and tear and that I broke the water line and therefore it wouldn't be covered in my contract." I told them that the two pieces of information I had says that it is covered. Then I was told that the service contract that they had (which I couldn't get access to due to the "awaiting funds" situation) says that in a certain section that it wouldn't be covered.

I felt that this company had misrepresented themselves in what they say they cover and has used information to deny my claim that I am not privy to have. I filed a complaint with the NCDOJ on 01NOV2016. Dawn Loper (800.992.3400, x2606) at FAHW contacted me via their website and by phone 02NOV2016. She informed me that they had re-opened the claim and wanted the following information from me: "First American, Wednesday, Nov 2, 2016 @ 9:13AM Good Morning: You will need to fax in a written report from a licensed contractor that states that this is normal wear and tear and/or proof that this PVC piping is defective. Then it will be reviewed by my supervisor before a decision is made. You can fax that information to 800-700-4457 and reference your claim number 306016057. Thank You for choosing First American. Have a good day." I received the information they wanted 07NOV2016 from a licensed contractor. It said: "We recently visited the address to handle misc. plumbing issues for the owner. Two of the issues we addressed were cracked CPVC fittings, both caused leaks, one in the wall on the 2nd floor and the other in the crawlspace. The leaks were from the normal wear and tear of CPVC and its nature to become brittle over time. This is very common of CPVC, so much that we have a waiver that we require our customers to sign before we will work on a plumbing system containing the material. CPVC is not deemed a defective material, but has a history of causing issues where it has been plumbed." On 16NOV2016, I happened to see on FAHW's site that my claim was denied again. I talked with Alexandria Hoston (800.992.3400, x6387) and she told me so many conflicting reasons as to why my claim was denied again. Not only does FAHW give misinformation, but found every loophole they could to keep from honoring their warranty and fixing my plumbing system issue in my newly acquired home. I feel that this is a flagrant abuse of truth in advertising and that every homeowner should be aware of FAHW's "scamtastic" ways as well as with other home warranty companies out there.