Home warranty wars: homeowners, attorney general fight for stricter practices within industry

HOUSTON – Many homeowners have discovered home warranties are fraudulent.

Jena Goetz understands this firsthand. Her air conditioner went out last summer and she said things got even hotter when the repairman selected by her warranty company showed up at the front door.

“In order to replace (the) coil that is covered under your home warranty, we have to do all this extra work adding up to $1,800,” she said.

Fed up, Goetz hired her own repairman who exposed the unnecessary charges and told her she didn’t need any of the extra work completed.

The bottom line for Goetz surrounding home warranties is simple, “scam."

Home warranties is big business nationwide with millions relying on them. The pitch by companies is that they have the policy holder’s back when things break down.

"The biggest concern I have about this is that people are purchasing this product with an expectation it’s going to be there when they need it and that actually ends up not being the case,” said Rep. Tom Oliverson in an interview with Channel 2 Investigates.

Oliverson oversees insurance in Texas as Vice Chair of the House Insurance Committee.

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