March 30, 2008
Dear ConsumerAffairs.com,
Your slogan is Knowledge is Power. Thats a great slogan and one that applies everywhere in life. Understanding a Home Warranty Plans coverage is no exception.
For an average premium of $300, a home warranty provides one full year of coverage against the breakdown of a homes systems and appliances. Thats probably the cheapest type of insurance you can get! And when a breakdown occurs, you simply have to call an 800 number at any time, day or night, to obtain service.
And we have a real simple contract for your reading pleasure. Its not that 20 page, fine print, Auto Policy either. Its two pages, and clearly defines whats covered and whats not.
In the situation used in your article, Steve in Land O Lakes, FL advised ConsumerAffairs.com that he had his air conditioner replaced for over $4000 and Old Republic would only reimburse him for $500 (which he claims was never sent). Unfortunately, Steve did not provide all the facts of his claim. According to our records, Steve called his own contractor out, had the air conditioner replaced and then sent the invoice to Old Republic Home Protection for reimbursement.
His home warranty contract was clear in the coverage provided:
We require you to contact us so we may have the opportunity to select a contractor to perform the service. We will not reimburse you for services performed by your own contractor without prior authorization.
According to the terms of the Plan, Steves request could have been denied in full. Instead, we determined that there had been a malfunction (which did not require a total system replacement) and as a goodwill gesture reimbursed Steve for what our cost would have been for the necessary repairs. A check was sent to Steve for $1,360 - our cost of service had he called us directly to resolve his service issue.
Steves situation is a great example of how Old Republic Home Protection looks for ways to provide coverage, even when the Home Warranty Plan specifically states that we do not provide reimbursement without prior approval.
Like Consumer Affairs, we also have a slogan. This slogan was not created by some marketerit came from our sincere belief in what were here to accomplish as an Organization. At Old Republic Home Protection, we are People Helping People. We look for ways and make decisions that allow us to provide the best service in the industry.
Thank you for allowing us the opportunity to share our views,
Gwen Gallagher
President
