Some customers turn to consumer advocates to help them. That was the case when Michael Perez's hot water heater stopped working and the company they purchased a home warranty through refused to cover the repair costs (as reported by CBS Sacramento, 9/18/12). Kurtis Ming, who helps consumers with such situations, reports that Perez paid more than $400 for a warranty through Fidelity National Home Warranty to cover appliances, but Fidelity denied the claim stating the water heater must have been in good, safe working order when the contract was started.
But as Ming learned, a technician reported that the day the heater was turned on it was fine. According to Ming, Fidelity still refuses to pay for the water heater, so Perez bought a new one, but he is considering legal action against the warranty company.
Fidelity National is not the only warranty company to have complaints filed against it. American Home Shield has faced a lawsuit and American Fidelity was the subject of a CBS Las Vegas report (9/13/12). That situation involved Manny Curesma, whose air conditioning failed to work properly. When he contacted American Fidelity, he was reportedly told his policy did not exist.
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The commissioner notes that American Fidelity offered a home warranty program without a license.
A statement on the American Fidelity website notes that the company closed due to "economic hardships and other factors." No word on what will happen for customers who recently paid for warranties through the company.