American Home Shield current and past policy holders may have already received a letter informing them that they may qualify to be a part of a class action lawsuit brought against the home warranty company. The Abney Class Action Settlement website has all of the documents associated with the case. While both parties vigorously maintain their side of the case, it has been agreed that a settlement is better than a protracted court battle. The crux of the case is whether AHS’s payment to Realtors was a RESPA violation or not? If the settlement goes through the payment will be $45.11 and not to exceed $60.
Regardless of the outcome I like the home warranty concept and think that AHS is the best of the ones we have had dealings with. Home warranties don’t cover everything and like most insurance policies you really hope you never need them but for the cost of the warranty and associated deductible we have seen AHS pay out many times the cost of the product. In the case of properties with air conditioners it is a great idea because those units cannot be inspected if it is too cold.
If you have a home warranty the key is to call the warranty company first when there is an issue. Don’t have it fixed and then call hoping to be reimbursed.