Sarasota Realtor openly discloses home warranty “small print” and gotchas you must understand before dropping $375.00+ for home “protection”.
Buyers & Sellers MUST research carefully BEFORE spending $$$$$!
Louise, a friend of mine, thought she was protected with a home warranty and its $45.00 co-pay.
She absolutely swore by the home warranty’s $45.00 co-pay if her a/c, water heater, refrigerator or some other COSTLY covered item broke or otherwise stopped working.
On the surface, that sounded great…to me too!
For peace of mind, Louise continued renewing the warranty with Globe Home Warranty. For 3 years, she paid the annual premium…$375.00.
It was then Louise discovers the “dark” side of home warranties.
Click Read More below now to discover the dark secrets home warranty companies (not just Globe Home Warranty) do NOT want you to discover.
LOUISE’S BIG ADVENTURE
On a hot, humid Florida summer day, Louise’s AC went out. She called Globe Home Warranty as required.
Note: You don’t just call any a/c contractor. You call the home warranty company’s number at which time they dispatch from their network of contracted providers.
The A/C service tech diagnosed the problem, claiming he could NOT repair the unit…apparently, unit was beyond repair.
“Too old of a unit,” he told Louise. Apparently, the unit had been “duck-taped” together.
Louise breathed a sigh of relief, believing her Globe Home Warranty would REPLACE the unit with “like kind” if it could not repair it.
Of course, it was this belief that convinced Louise each year to budget the annual $375.00 expense.
Turns out, Louise’s experience opened my eyes to a “gotcha” with Globe Home Warranty…and with all other home warranty companies with which I’ve dealt over the years.
Service Tech requested a copy of Louise’s service plan on her a/c. Turns out, one gotcha buried in the small print is a requirement the policy holder hire a licensed contractor to service regularly the a/c unit. Louise had NO service plan! Because Louise had NO service plan on her AC, Globe Home Warranty refused her claim.
Louise was devastated…feeling betrayed. What she thought would be a $45.00 repair (replacement) turned into a $1542.00 replacement (a/c compressor).
It’s Not The Home Warranty;
It’s The Home Warranty “Company”
To Blame!
At this time, you might think I detest home warranties.
Actually, I believe in home warranties, provided you understand the small print. I detest how Globe Home Warranty treated Louise, someone who had paid an annual premium for a few years.
It was clear to the service technician Louise had maintained the unit by frequently changing filters.
I detest the “small print” gotchas.
I HATE small print.
Globe Home Warranty and all other home warranty companies with which I’ve dealt include small print. Some elect to EXPLAIN the small print upfront.
For instance, I clearly understand the NEED for rejecting SOME repairs. Some people do absolutely ZERO maintenance. They never change the filter…regularly. Their air handler’s coil fills up and overloads the handler and compressor, thereby causing premature failure.
Why should the home warranty company be on the hook for home owner neglect?
They shouldn’t…hence, the exception.
Louise WAS The Exception!
However, in Louise’s case the service tech confirmed the condition of the coil…filter…and unit in general. He knew Louise had maintained the unit.
Policy is policy and Globe Home Warranty chose not to give exception to Louise.
A few important notes about a home warranty include:
- Most home warranty companies allow you (a buyer) to purchase ONLY at time of escrow or shortly after purchase.
- Most home warranty companies allow you (a seller) to purchase ONLY during time of sale. If you (buyers and sellers) don’t purchase during these times, you cannot purchase a home warranty. Check conditions carefully before trying to buy.
- Buy only from a big-name home warranty company that’s been around for years.
- Check Better Business Bureau and your State’s Insurance Commissioner for complaints before buying.
- Carefully review various companies’ service plans (what’s included vs what’s not included) before buying. Don’t just lock in on price.
- Try to get your questions answered in writing by the home warranty company’s local rep.
- What is the co-pay and is that the ONLY fee you’re expected to pay in event a system or appliance fails.
- Is this REPLACEMENT cost protection?
- How does Home Warranty Company determine replacement versus repair?
- How much are the add-ons such as roof, pool, pool & spa, etc? Are those coverages worth the cost? If you have a pool or pool & spa, yes (I believe it’s worth it).
To help you see the benefit of a home warranty with the above questions answered to your satisfaction, here’s a good ending.
On one rental, the water heater went bad. My gosh, the water heater was 21 years old. It had far exceeded its life expectancy. At first I had forgotten we had a home warranty on the house. I called a local plumber who quoted me $636.00 to replace the water heater.
It was then I regained my senses and recalled the home warranty. A quick call to the home warranty company and I had the water heater replaced (brand spankin’ new water heater) for JUST $45.00.
You tell me, how can you beat that? One water heater easily paid for the entire year’s premium.
Got a question, comment or experience to share? Great, I want to hear from you. Go below to the box and share your question, comment or experience. Write as much as you want. I’ll read and respond. If you have other gotchas you want to share, of course others and I want to hear. If you want to buy a home or sell a house in or around Sarasota, call me now. Let’s talk. I want to be your realtor.
Sarasota Realtor (me) fully endorses home warranties, provided you do your research and completely understand their “gotchas”. Talk with your realtor about who he/she recommends. However, keep in mind, your realtor or your realtor’s broker might BENEFIT financially from an affiliate commission paid the realtor or broker from the sale of a policy. Make certain your realtor or realtor’s broker discloses any such affiliated business relationship.
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{ 10 comments… read them below or add one }
No, I didn’t need to ask you about attorneys. I already knew the answer. When tenants held a house I was trying to short sell hostage, the SELLERS and I began calling every single attorney in the phone book. We experienced exactly what you experienced –
Reality Check – attorneys NEVER work free. They ALWAYS get paid…upfront! Wouldn’t it be nice if we all could get paid for every nano-second we work – attorneys and their billable hour BS.
On this point, I understand & commiserate.
http://www.sarasotahomesforsalenow.com/sarasota-realtor-pellegrino/
Mike
Oh and I know you are going to ask so… after calling several lawyers they wanted 30K up front just to file for me. I found 1 named Andrew Mooney in Bradenton who took a 2K retainer and did nothing with the case almost costing me the lawsuit, after pleading with everyone I know I found a DCF lawyer in Tavares FL who said he would take my case for 2K retainer and I pay all expenses and 15% of anything I may win. Needless to say I have worked just to give my paychecks to this lawyer for his travel and expenses for the past almost 4 years. I am tired and broke but not broken.
WOW, your experience is horrible. I’m sorry for the effects on your health as well. We can survive foreclosure and bankruptcy, but health issues define a different challenge.
Please keep me updated. I don’t know what possibly could come from mediation…that could benefit you.
Mike
Mike, It has been hell for me. I was a first time home buyer, I worked for the herald tribune at the time. I saw the house at an open house the Roca’s held as FSBO and expressed interest in the house. The credit finance manager at the HT referred me to her husband Verne Phillips who worked for… Non other than Arthur R Seaborne, I am sure you have heard about him and his crimes. At any rate it was total collusion from there, the Roca’s and Seaborne got together and I was threatened with a 300K lawsuit if I didn’t close w/o inspection, I had no one to help me, I called several lawyers but no one returned my calls. Seaborne even went so far as to falsify my finances on the application after I filled them out and signed them. At closing I was placed in a room by myself in Attorney John Persse’s office the papers were tossed in front of me and I was told to sign or I would be sued and sent to jail. I was scared, I never received keys to the house and was told I could not have the house for an additional 2 weeks as the Roca’s were remaining there until their new house was done. I was called every derogatory name he could think of for me. When I was finally able to break into the house well you can see what I found. I filed a lawsuit and began pouring money into the money pit to no avail as it was far gone for far too long. I have am allergic to the mold so I had to move out 2 years ago. The Roca’s have their State Farm homeowners insurance attorney who just keeps the case running to run me out of funds, he has mostly succeeded.
Finally I do have a mediation this coming July 2nd of which I have been told by the Roca’s attorney that I had better take what ever they offer me because I will not get a dime from the Roca’s if I take it to trial.
I am sorry but I don’t think anyone in this world should be treated the way I have for the past 4 plus years. Sheri Roca worked for a company called Urineoff when I purchased the house and now she is hired by Neil to be a design consultant, I am shocked that she is going to get to stage others homes to scam more unsuspecting first time buyers, she has no design degree she was just really good at hiding material defects and colluding with a criminal mortgage broker. I was barred from the house from the first view till after closing to keep me from rescinding the offer. Roca’s lied about the condition of the house on the disclosure and it was all I had to go on. I was ignored every time I asked for an inspection. I now have to take a foreclosure on the house and file bankruptcy just to get by. The house has had a permanent effect on my respiratory system but I cannot afford the cost to fight that angle. I just want to save others from this happening to them. This has been a life time of savings lesson for me and I do not wish anyone else to have lose a lifetime of savings as I have.
Thank you for your understanding. There really is no justice, the criminals win
I am smart and educated Mike but I am no challenge for accomplished criminals and Arthur R Seaborne and Sheri & Enrique Roca are just that, criminals. They take every penny you have so you cannot afford to fight them.
On a second note, Seaborne was given a mortgage brokers license just 4 years after having his RE license revoked by the OFR for mortgage fraud and just 1 year after a chapter 7 bankruptcy so the State OFR gave him a license to take me for everything, when I later turned him in, they started passing the buck and I have a letter from every State official from McCollum on down and sideways just passing the buck stating it’s not our fault nor our problem…sorry girl. I will barely get through this lawsuit with a red cent to my name, I cannot go after the State…
I lose but I won’t go without a fight.
Thank you for hearing me Mike.
Sheri & Enrique Roca staged their home to sell and fraudulently did not disclose foundation leaks, toxic mold all over the house and roofing leaks, they covered everything with paint and burned scented candles when ever they showed the house. They lied outright on the property disclosure statement.
The lawsuit has gone on for 4 years now and mediation will be soon. I am only warning others to this intentional scam to save them from falling prey to this same scam by the same person.
If just one person is spared the years of litigation and losing not only their home but all their money then my job is done.
Why has this gone on for 4 years? Was (were) licensed real estate agents involved? Was a home inspection involved? How did these SERIOUS issues pass scrutiny…or even suspicion? Did anyone talk with neighbors? I always want to know what neighbors have to say about a house in which prospective buyers are interested. Was it poor grading/draining or is it in a designated flood plane?
You’re right, NO ONE should have to experience what your photos (if accurate) depict.
Any seller knowingly omitting intentionally or unintentionally MUST BE prosecuted.
Further, ALL BUYERS MUST GET A PROPERTY INSPECTED. Home inspectors are not infallible as we all know, but for $400, a buyer will (SHOULD) know of the issues affecting the owner of the property you showed in photos.
Specific contractors also are recommended for ROOF (most inspectors do NOT go onto the roof to inspect – they use binoculars). I recommend an HVAC contractor and a Roofing contractor as well.
Ask neighbors about any flooding or low-lying areas where water builds up. You’d be surprised what neighbors will REVEAL about a property. Visit neighbors after 5:00 PM during the week or on Saturday (I prefer 9-10 AM).
I’m sorry for this horrible experience. Please keep us updated with court proceedings.
Mike
The photos show a horrible situation. Here’s what I don’t get: why are YOU defaming this person Sheri Roca on my website and other websites, I’m sure?
Why are you not providing details?
What have you done LEGALLY to present your case…if you have one?
I’m curious what happened? How did Sheri Roca (design consultant with Neil Communities) scam you?
I can understand anger and vengeance. PLEASE, when you go leave comments on other people’s websites, include details & as many facts as you can. I’m no attorney, but you open yourself to defamation suit.
I hope to hear what happened…. If there’s legitimacy, we want to prevent others from a flooded, mold-infected & water-soaked house.
Mike
Sheri Roca Design Consultant Neil Communities
Home Staging Scams, See Photos of her Filthy Crime Here
http://s246.photobucket.com/albums/gg107/kelliott001/Sheri%20Roca%20Neal%20Communities%20Design%20Consultant%20SCAM/
Globe Home Warranty has done something similiar to a very good friend of mine. Their ‘customer service’ reps are rude, they agreed to pay for something, agreed to prepay given they were broke and then after a few weeks never sent the check but kept lying and saying they did (I believe they kept telling her the check was mailed just to get her to wait until after her contract expired so that she didn’t have a leg to stand on when she filed complaints with BBB). The claim started in early May, their contract expired on May 26th, after that point Globe Home Warranty publically (on a home warranty review board) admitted to having made the agreement to prepay and then ‘changed their minds’. What a scam!
Thank you, Patience, for sharing your friend’s experience with Globe Home Warranty. Sadly, I’ve hear of similar experiences will all of the main home warranty companies.
I’m sorry to hear of your friend’s experience.
The key, in my mind, is to be the SQUEAKY wheel, not stopping with the BBB. File a complaint with the State Insurance Commissioner’s office and the Department of Business & Professional Services. The only way to force some of these home warranty companies to comply with the agreement is to be the squeaky wheel.
Please stop back again. I appreciate your comments.
Mike
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