Quantcast

Ark-la-tex resident scammed by Home Warranty Company - KTBS.com - Shreveport, LA News, Weather and Sports

Ark-la-tex resident scammed by Home Warranty Company

Posted: Updated:

Buying and selling a home are no small tasks.  And unfortunately, there are scammers out there looking to cash in on the often complicated process.  First time home buyers Michelle Bogan and her husband thought they'd found a good deal when they bought a house with a home warranty included for the first year.  But right after moving in, Bogan found the company behind the warranty wasn't following through - and as it turns out - the company isn't even supposed to selling policies in the state of Louisiana.

During one of our warmer days in December, the Bogan's A/C unit went out.  She knew it was covered, so she called "Sensible Home Warranty." "They sent someone out, he looked at it, said it was one problem, turns out it wasn't that it was the compressor, and he would have to get with underwriting at Sensible to get it fixed. Well, they went back and forth with us for a few months saying they needed maintenance records or else they wouldn't fix it."

The warranty contract specifically says "in the event one of the major systems...requires replacement...Maintenance records are required.  In the event no maintenance can be had (ie. New home purchase) a copy of the home inspection must be furnished to sensible home warranty."  Bogan says she gave them the inspection report right away.  And she even had the previous owner provide some earlier maintenance reports. 

"I've contacted them several times," she says, "they just keep saying they want maintenance records, and the past couple times I've contacted them saying we reported them to the Better Business Bureau, they haven't even responded."  Bogan said according to her correspondence with the BBB, "Sensible Home Warranty" hasn't responded to the BBB either, once her formal complaint was filed.

Unfortunately, the Bogan's aren't the only people fed up with this company. There are over 1,300 complaints filed against them on the BBB's web site.  "Sensible Home Warranty" has an "F" letter grade with the BBB.  In Oklahoma, the Insurance Commissioner revoked their license.  And, "Cease and Desist" orders have been sent by Utah, Washington, and Louisiana.

"They are not licensed in our state," says Louisiana Insurance Commissioner James Donelon, "They're authorized in other states...to do home warranty business but they're not authorized in Louisiana, even though they were selling such contracts in our state.  We issued a "Cease and Desist" order to them and told them to stop doing business in our state."  That "Cease and Desist" order was sent back in January of 2013, almost a year before Bogan's policy went into effect. 

So ultimately, you the consumer need to make sure you don't wind up like the Bogan's.  "Do your research, do you due diligence, look at it from every angle, check with other people, look at reviews online," says Bogan.  And you can't take the companies word for it since "Sensible Home Warranty" claims it's a provider that "truly cares for its policy holders" and is "guaranteed to save you money and give you a peace of mind."  In a letter sent to the Bogan's when their policy started "Sensible Home Warranty" thanked them for their business, assuring them their choice was a solid one.

"I feel like we were really betrayed and lied to by the insurance company," says Bogan, "We're going to have to get our whole unit replaced because our air conditioner is old...we're going to go in debt about $8,000."

The local contractor sent out is "V Force Repairs."  We spoke with them about the bogan's situation.   They say they told "Sensible Home Warranty" what needed to be fixed at the bogan's house.  But they can't perform the repairs because they've never heard back from the company has yet to authorize the repair. And "V Force Repairs" claims they're still waiting to be paid by Sensible for work they've done for other warranty clients.  

When choosing a home warranty company, both the Department of Insurance and Better Business Bureau are good resources.However, if you have a complaint with an insurance company, make sure you file a complaint with the insurance commissioner.   They can fine, reprimand, and regulate the insurance industry, unlike the BBB.

If you want to file a complaint with the DOI, Donelon says this is how it is handled: "We submit it to the company, and we take complaints either verbally, online or even over the phone...And they under statue have X number of days to reply to the complaint. They typically ask for an extension of time in which to investigate the matter and submit their answer.  Sometimes we grant that extension, I'd even say most times we grant it for an additional 30 days, maybe 15, and when the response comes in we evaluate that and make a determination as to whether or not the company was at fault.  We keep a tally by company, by agent, by adjustor, whoever we regulate, of complaints against that particular individual or company." 

If you need to report insurance fraud click here

If you need to file an insurance complaint click here.

  • ArkLaTex SlideshowsMore>>

  • ArkLaTex Adoptable Pets

    ArkLaTex Adoptable Pets

    Friday, August 29 2014 6:12 PM EDT2014-08-29 22:12:16 GMT
    There are lots of animals in the Ark-La-Tex who are looking for that perfect home.
    There are lots of animals in the Ark-La-Tex who are looking for that perfect home.
  • KTBS 3 Viewer's Pets

    KTBS 3 Viewer's Pets

    Thursday, August 28 2014 7:00 PM EDT2014-08-28 23:00:16 GMT
    Viewer's petsViewer's pets
    Viewer's pets
    Viewer's pets
  • Louisiana Department of Children and Family Services Adoptable Children

    Louisiana Department of Children and Family Services Adoptable Children

    Thursday, August 28 2014 6:44 PM EDT2014-08-28 22:44:11 GMT
    DJanaeDJanae
    Foster/Adoption Parenting Minimum Qualifications and Steps to Certification Minimum Qualifications for Certification.
    Foster/Adoption Parenting Minimum Qualifications and Steps to Certification Minimum Qualifications for Certification.
  • NationalMore>>

  • School starts in Chicago with more safety guards

    School starts in Chicago with more safety guards

    Tuesday, September 2 2014 2:53 PM EDT2014-09-02 18:53:03 GMT
    Chicago children will walk past even more guards on their first day of school than last year, when concerns about safety prompted the city to line the streets with 1,200 adults every day.
    School opened in Chicago on Tuesday, with children and parents making their way past security guards whose bright neon vests served as a reminder of the city's efforts to protect students from the violence that plagues...
  • Coroner: Indiana teen killed by asphyxiation

    Coroner: Indiana teen killed by asphyxiation

    Tuesday, September 2 2014 2:44 PM EDT2014-09-02 18:44:05 GMT
    Relatives of an Indianapolis teenager whose badly burned body was found in a yard say they believe she was abducted and killed by a stranger.
    Relatives of an Indianapolis teenager whose badly burned body was found in a yard say they believe she was abducted and killed by a stranger.
  • Justice Department: Texas voter ID discriminatory

    Justice Department: Texas voter ID discriminatory

    Tuesday, September 2 2014 2:44 PM EDT2014-09-02 18:44:02 GMT
    A Justice Department lawyer has told a federal judge that a tough new Texas voter ID law was motivated by racial discrimination and should be struck down.
    A federal judge on Tuesday began reviewing tough new Texas voter ID rules challenged by the Obama administration in a trial that could threaten the polarizing law, although a decision isn't expected before the November...
  • KTBS 3 News Tips

    Send your news tip or story idea to the KTBS 3 Newsroom.  Enter your email address below to get started.

    * denotes required fields
    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thank you for your submission to KTBS 3 News.  A member of our staff may contact you for more information.

Share Your Images
Powered by WorldNow
    Powered by WorldNow
    All content © Copyright 2000 - 2014 Worldnow and KTBS. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
    Advertising | EEO Public File | KTBS 3 Public File | KPXJ 21 Public File