Home Buyers Warranty deceptive, fraudulent operation that will not honor a written contract Aurora Colorado

Almost no one gets a claim accepted, let alone paid, on a defective new home, by a home warranty company. I am not sure if the warranties on resale homes are as bad, but I can speak from personal experience about the policies on new homes.

Some states claim to regulate them but the law is not enforced. If you ever do get the legal documentation to accept a claim that may rarely be offered, it is full of loopholes that essentially make it impossible to agree to. Warranty companies protect the builder, even when they know it's a BAD builder.

Don't ever assume you have warranty coverage just because your builder sells homes with these policies. You are smarter to waive the extra warranty and make sure your builder's contract spells out the builder's own warranty in compliance with state laws.

If you have to go after a warranty comapny AND a builder to get compensation for defects, it only makes a big mess of things and neither of them will pay.

Warranty companies deny most claims outright. The policies have so many exclusions that they might as well say, "you actually have no coverage." If you want to dispute it, they will try to force you into binding arbitration with an arbitration service THEY choose and do business with.

Most home owners never see the actual policy they'll be bound by before they agree to have a warranty policy at all. New home builders typically sell new homes with these policies and the home owner is a third party, but still obligated to arbitrate in the warranty co's kangaroo court. (Unless you have an FHA loan in which case you MIGHT be able to get FHA to abide by Title 24, 203.204(g) of the Code of Federal Regulations which lists many options for dispute resolution. The home builders are trying to get FHA to stop using this regulation by the way.)

In the book "Your New House" by Fields, it is stated that they learned this warranty co denies something like 86% of claims. If a home owner goes to arbitration, they typically will lose. To keep consumers from talking about it there is often a gag order. Arbitration is a private record so no other consumers can effectively research the company before being fooled into thinking they have a "warranty" from this or any other warranty company.

Even if you did get an offer from a warranty company good luck ever collecting it!