Columbia SC Home Warranty: Why Avoid Them

If you're considering getting a Columbia SC home warranty, you might want to think again.

You may have bought your share of home warranties—service contracts that promise to cover appliances and other items that break down in your home—whether they were a Columbia SC home warranty, or one you purchased in another area. The fact is, you probably should not have. A recent complaint consumer officials in New Jersey filed against one home warranty company illustrates why.

Reasons to Avoid a Columbia SC Home Warranty

The New Jersey complaint says that far too often, warranty claims are denied because the company says the problem was pre-existing. Or, the claim is denied because the consumer can't prove that a broken item was properly maintained.

In this particular case, New Jersey officials say this Home Warranty Company "repeatedly made it difficult if not impossible for consumers to realize the benefits of their so-called warranties," the New Jersey Division of Consumer Affairs said in a statement announcing the complaint, which was filed in state superior court.

The state said the company, which sold coverage in at least 25 states, including selling many Columbia SC home warranty agreements, denied claims even when technicians said covered products had been property maintained or that a problem wasn't pre-existing or caused by a lack of maintenance. For some claims, the state said, the company demanded that customers provide years of maintenance records.

While the coverage required the company to replace products that couldn't be repaired, the state said the company offered consumers cash "buyouts" for hundreds of dollars less than it would cost to replace the item. And in some cases, local technicians dispatched to handle claims refused to respond, saying the company failed to pay them for their previous service.

In a statement, Choice Home Warranty said that it denies the allegations and will "vigorously" defend itself against them. The company also said it has paid "tens of millions of dollars" in claims for repairs and replacements and that the consumers who complained represent are small fraction of its customers.

According to Consumer Reports, Choice Home Warranty has an "F" rating  from the Better Business Bureau because of 957 complaints, the time it took the company to resolve the issues, and the New Jersey complaint.

Even the best service contracts typically aren't worth the cost. One suggestion Consumer Reports makes is, put your money in the bank instead and save up. A couple of years worth of Columbia SC home warranty premiums may be enough to pay for a repair when it's needed.