One such lawsuit was reportedly filed against Fidelity National Home Warranty in 2009, by Dan Kaplan and James Baker. The lawsuit, as reported by Home Warranty Wiz (11/21/11), alleges that Fidelity National Home Warranty sold home warranty plans but wrongfully denied legitimate customer claims on items included in the home warranty plans. Plaintiffs filed the lawsuit on behalf of customers who purchased a Fidelity warranty agreement on or since July 18, 2002.
According to the court documents, Fidelity National Home Warranty "failed to comply with its duty to properly adjust submitted claims under the home warranty plans, resulting in improperly rejected claims and damages to Plaintiffs and the class." The court documents note that Fidelity started business as Alliance Home Warranty in January 1995 and was founded by former employees of American Home Shield.
Plaintiff Dan Kaplan alleges in court documents that he made four claims with Fidelity, three of which were not properly adjusted and were improperly denied. His first claim involved a leaky toilet, which a third-party plumber determined was a construction defect and not covered by the warranty. According to court documents, the plumber refused to put the toilet back in place but still charged Kaplan a $50 service fee. A plumber for the developer was then sent out, who determined that the previous plumber was mistaken in his diagnosis of the leak.
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The plaintiffs allege that Fidelity third-party service providers are trained to deny legitimate claims. Furthermore, they allege that Fidelity refuses to authorize replacement of appliances and increases the number of service calls, which increases the money made from service fees ($50 per visit). Finally, they claim that Fidelity rewards contractors who deny claims by giving them more calls.
In addition to the lawsuit against Fidelity, lawsuits have been filed against other home warranty companies for allegedly improperly denying clients' claims.
They sent out solaris who reset the pressure switch and showed me where/how to reset if it blew again.
The initial call, I TOLD them that there was extensive damage due to dog urine to which they said "don't worry, it's covered".
So from 7/1/2015 to 7/8/2015 their coverage suddenly changed and they deny repairs.
I had to purchase a new unit that cost me just over $7000 bucks. I never ever has used fidelity again and anytime I heard a friend bring them up I made sure they went somewhere else they are an evil company that cares only about money and doesn't operate as a company should and doesn't live up to thier contracts.
Fines should given and laws should change to stop Bad Faith insurance