Consumer Complaints and Reviews
Received offer from my energy co of a home warranty by a company under Allied Home Warranty for home central air conditioner paid monthly through my energy company. I called in a claim due to my AC leaking Freon through the evaporated coils. A mechanic came by and claimed home warranty covers the inside unit but not the outside ac unit. He provided an estimate with costs over 5000.00 that the warranty covered. Allied refused to repair the AC inside and outside.
I was told by a supervisor named GLORIA that the area manager would return my call. I spoke with this area manager on 5/31 as he claimed he would look into the issue and call back. Area manager Jeff ** never returned my calls. I contacted him 4 times as they continue to tell me he's unavailable and will return my call. This warranty does not exist, they will tell you they cannot repair or cover anything; however the contract clearly indicated the ac would be repaired. This warranty is BOGUS.
I had to contact the Better Business Bureau on this company since they do not deliver on that which they promise. As a member for the past four years with very few claims (possibly three in the entire time) the last attempt was the absolute worst. 4 attempts to get one issue with my refrigerator resolved and several months later, no viable solution was reached. All of the vendors in their network whom they claim have undergone a rigorous vetting process are anything but reputable.
One company assigned to my claim immediately stated they could not help me and informed me to contact the home warranty company for another vendor, then abruptly hung up. Another vendor assigned to work on the appliance is one that works out of the garage of a home who also had less than desirable customer service; especially after the manager/owner of this company yelled at me when I brought to his attention his lack of professionalism on the telephone.
The home warranty contacted yet another vendor who stated would be out on a Saturday to make the repairs. I waited and waited and waited - no phone call, no email and no one showed up. After many telephone conversations with Allied and exchanges which took place in the BBB forum in which they made slanderous remarks about me - a viable solution to this problem was never reached. It is unknown why this company has such a terrible YELP rating (one star - the absolute lowest) yet the BBB who has handled hundreds of complaints still rates them as an A+ member.
Terrible. My AC stopped working. I received my own estimates for around $1000 and was told I had to replace the whole outside unit. I then called Allied who sent someone out who also confirmed that you couldn't just replace the one broken part, you had to replace the whole outside unit but they were going to charge $2000. The kicker... Allied said they would only pay $700 to replace the one broken piece because the rest is a "modification". Never mind that both repair people said it's not even possible to only replace the one piece. Allied is a scam.
Allied Home Warranty "one-page warranty" is nothing but a one-page scam and a way to keep it vague and deny claims. AHW will send out the technician of their choosing and you have no option for a 2nd opinion. The price you will be quoted for any work will be double or triple what it would cost anywhere else. My call was for my A/C. The technician after THREE separate visits said my Air Handler needed to be replaced and Allied would only cover $600.00. The remaining amount $2000.00 would be my responsibility because it was considered "modifications" and those are not covered in their "one page contract." They gave me a ridiculous song and dance about what they covered and didn't cover. It seemed pretty straightforward to me that this was EXACTLY why I had a home warranty in the first place.
I called for a 2nd opinion and 3rd opinion. Both of the opinions came from HomeAdvisor.com referrals. And both of those certified techniques said my problem was NOT the Air Handler and replacing that would not solve my issue. What needs to be replaced is the Air Conditioning unit completely. And to add insult to injury Allied indicates they will not honor or pay for either of the 2 other opinions I have obtained and my ONLY option is to have the repairs that their company says I need or nothing at all. Even though 2 other certified companies say replacing the Air Handler will not fix the problem. How is that for logic?
As with a previous reviewer I am in the process of filing a complaint with the Texas Real Estate Commission Residential Service Program, and with the Texas Deceptive Trade Practices-Consumer Protection Act. I am also speaking to an attorney because of Allied's negligence and deceptive practices. They have placed the residents' health in danger as they have been without air-conditioning for over a month. We as consumers cannot take this kind of treatment lying down!
To follow up on my earlier review, I thought I would share with you how to file a proper complaint against Allied Home Warranty. They are licensed by the Texas Real Estate Commission and that is who everyone needs to file their complaints with. Search for "Texas Real Estate Commission Residential Service Program" then click the link for complaints. Allied is required by law to respond to complaints filed this way. I filed an open records request and obtained past complaint files. I found that in some instances Allied Home Warranty settled with people after they filed complaints.
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This "one-page warranty" is nothing but a one-page scam. AHW will send out the technician of their choosing and you have no option for a 2nd opinion. The price you will be quoted for any work will be upwards of double or triple what it would cost anywhere else. I am in the process of selling my home and there were items found that needed to be replaced. They were covered by the warranty according to the one-page warranty. When the bill arrived for the first job, I was charged $295 + $60 service call. The service call was not deducted from the job. They supposedly charged the warranty company $490. The total charge was $785 to replace the lines on my hot water heater. They did not replace the hot water heater itself.
The second call was for my A/C. The technician said my system was completely shot and was not working at all, despite the fact that it was freezing me out. He said I needed to replace BOTH box evaporator coils at a whopping $5,415 of which AHW was agreeing to pay less than $1,300. They gave me a ridiculous song and dance about what they covered and didn't cover. It seemed pretty straightforward to me that this was EXACTLY why I had a home warranty in the first place. I called for a 2nd opinion, which I had to pay for out of pocket after already paying $60 to the first guy, who was a price gouging NRG A/C guy and a good example of why A/C guys have a bad reputation. The 2nd opinion came from a referral from HomeAdvisor.com. He was fast and courteous and basically told me my system was working just fine and that there was nothing wrong with it or the evaporator coils.
I will be cancelling this warranty immediately. This service is garbage. The company rips people off and provides you with a false sense of security. I would definitely advise anyone interested in a home warranty to look elsewhere.
I have had Allied providing a home warranty for 3 years on my rental house. I haven't really used the warranty other than for maintenance (which was no real savings) is recently. I had a foundation problem at this house as it’s rampant in North Texas lately, and in having the foundation repaired one sewer pipe broke under the slab. I had a pressure test done and isolation test to determine the location of all leaks, there was thankfully only one leak. The cost to fix the leak is $2500 due to the necessity of tunneling under the slab. The actual repair was almost $500. I called Allied to see if the repair was covered and they told me that accessing the repair is not covered (then how can you fix it?) but the repair would be, however they had to have one of their NRG expert idiots out to assess the situation and run his own tests, which I had already done at a cost over $500.
They refused to accept the findings of a plumber who has been reputably in business for over 20 years. Effectively telling me to go screw myself because it made no sense to pay over $500 again to try to get these ** to pay what little they would be willing to pay. Additionally, I am selling the house and called to set up an AC check to make sure everything was fine well unless "the weather permits" they won't do that. It has to be above 70 degrees which is silly because it either runs properly or it doesn't. They can run the unit all day for all I care just make sure it running properly. This company is dead set on not doing anything if possible. I suggest you save the money you were going to pay any home warranty company unless your house is in really bad shape. Put your money in savings and keep it there for the eventual repair that comes up and tell these jerks to take a flying leap.
I will never pay any home warranty company again, it’s a scam and they know it better than you do.
Based on my recent experience I would not recommend the AHW service to anybody. My water heater had a gas leak and AHW has sent Troy **, the technician from their "preferred" service company, NRG, to check and estimate the cost of repairs. Troy provided me with three options ranging from $2,007 to $2,342 depending on the heater models. The cheapest model was quoted at $1,040 while I could get a similar unit for just $298 at Home Depot. Then he added these super-inflated charges: $210 for City Permit and Inspection fee (usually less than $30), $290 for pan drain line (should be $30 as the heater is only 2 feet away from the drain), $197 for the drip pan ($19.98 at Home Depot) and $300 for two-story roof access (should be $0 as the heater is on a first floor). Even with AHW coverage of $500 for the heater, I would've ended up with at least $1,507 for this job.
So, I asked for an independent contractor who did this job for $1,040 (so I saved $500 by not doing work with AHW!) but now AHW is trying any excuse for not covering any cost by citing that the contractor "does not have a website" as their main argument and Wade ** at AHW is not answering my emails. I see a very similar negative experience reported by another customer along with few others and wish I could've read all these reports before signing the contract with AHW.
I was using another home warranty company, American Home Shield, in my previous home but my last realtor suggested the AHW. I regret the switch and will cancel my current contract with AHW. I will also provide my feedback about this experience with AHW to the BBB. Consumers should unite and drive the thieves out of business by voting with their feet first followed by class action lawsuit.
Allied Home Warranty refused to honor its "One-page contract" and repair my plumbing problem. Why do they have a "One-page contract?" Because it is vague and allows them to refuse to honor repair requests at their discretion. Their affiliated contractor is NRG Home Services. NRG and Allied are owned by the same company. It even states so on their website. NRG said my plumbing repairs would not be covered by Allied, but that NRG would do them for $8,400 dollars and would even be so kind as to offer financing. He didn't even need to do an inspection of the house for that estimate. He never went into either bathroom, kitchen, or the utility room. He took no measurements. The two plumbers I called both took measurements and did a detailed inspection to give me estimates.
Allied said repairing or replacing pipes is a "modification" and their contract doesn't cover modifications. So, replacing or repairing anything can be considered a modification and is therefore not covered if it would cost Allied too much money to fix. Allied Home Warranty has an A+ rating with the Better Business Bureau. How do they manage that? They pay to be a member of the BBB and the BBB doesn't want to rate their members low. It hurts their business model. Here is the response I got to my complaint with the BBB for Allied Home Warranty failing to make the repairs required by their contract:
"There are some complaints the BBB cannot process due to our by-laws and national guidelines. The BBB cannot intervene with issues regarding store or company policy. Please understand policies are not required to be posted in the stores or on receipts in the State of Texas. It is very important that consumers ask a lot of questions prior to purchasing a product or use a service to ensure that they understand the company's refund/return/exchange policy clearly. You may wish to pursue your issue through the court system. The number for Small Claims Court information in Harris County is 713.755.5137. The BBB has not notified the other party in question but will keep your letter on file. We sincerely hope you can find another way to resolve your dispute."
It should be noted that Allied Home Warranty's "One-page contract" prohibits you from filing a lawsuit against them (small claims court). It requires you to go through arbitration instead.
Please do not buy this insurance at all. I hope that all those that are shopping for a good home warranty company do not consider this one. They say they have a one page contract and then have their own set of rules. In fact, they are a marketing company for specialized home repair company so they can make money via kickbacks. My water heater was inspected by their company which was NRG Home Services, yes the parent company of Reliant Energy. Both these companies have an exclusivity agreement. That means the customer cannot do their repairs with anyone else.
Now the NRG services tech came to our house and inspected the water heater and said it would cost us $1500 to replace it. I was shocked. He then said there is a $500 credit from Allied Warranty that will be applied. Which means I have to pay $1000 for a basic builder's grade water heater. I checked the price at Lowe's and Home Depot and the cost to replace a water heater with a 6-year warranty for both parts and labor was below $650.
I called Allied Warranty and said that their vendor is charging a lot for something that can be fixed for less. But they insisted that we had to go with the same vendor, NRG. I said the credit they gave to NRG they can provide it to me and I will replace it and also take the liability of any future repairs. But they said no! Which clearly means that Allied Warranty is receiving a kickback for providing clients to NRG. In the process, customers are getting ripped off and both these companies are profiting.
What surprised me is when I provided the quote from Lowe's, the rep from Allied Warranty said we need a store front licensed plumber and not stores like Lowe's or Home Depot. This seems to be deceptive practice and I hope something is done about it. What was also interesting in the process was that I found out that these plumbing companies charge over $200 for a city permit. When I called the city, they said the cost was only $25-$30. When I complained to the city permit manager, he said he was aware of it, but that nothing can be done. But that he would report to Legal and see.
Amazing how the whole system is set up to rip of American consumers. It is time the Texas lawmakers take a note of this. And yes, never use this Allied Home Warranty company. It has so many negative comments on the web and so many complaints to the BBB, yet the BBB has given them A+ rating. A system failure at its core.
We closed on our new home June 2, 2009 and started moving in shortly after that. Our inspection was completed during the 7 days following placing our bid in for the home. The inspector who was recommended to us by RE/MAX Galleria stated on our inspection report, "All 3 air conditioning units were in working condition." Once we moved in, we noticed that one of our units was not working properly. Our seller bought the Allied Home Warranty to protect us, so we called them right away to get a technician out to check on it. The technician stated that it was a pre-existing condition. If it were a pre-existing condition, it would not have worked when the inspection was performed, but it did work then.
The seller also purchased an upgraded "no fault coverage" which states: "There is no denial of coverage (No Fault coverage) for: (a) malfunctions that existed on the effective date of the contract if, at that time, the malfunction was unknown and would not have been detectable by visual inspection or a simple mechanical test, (b) malfunctions caused by a lack of maintenance, (c) malfunctions caused by improperly installed equipment and (d) malfunctions caused by mismatched sized systems. Undersized or poorly designed systems relative to the square footage are not covered by the no fault coverage.”
The AC unit was working at the time we did the inspection on the home and up until June 10th. We closed on the home on June 3rd. The AC unit was working on the effective date of the warranty. My husband emailed Allied exactly what they asked for (an addendum to the inspection report stating individually that each AC unit was in working condition at the time of the inspection). My husband emailed Allied several times and called with no return phone calls. I also had to stay on top of the situation daily because we rarely got a call back when they said they would do so. Allied Home Warranty continues to say they will not cover this issue and they were extremely rude with my husband and me.
I have been in customer service for 10-plus years and I would never treat a customer the way they have treated us. This is not what I consider to be good customer service in any way. I'm not sure why Allied was rude to my husband because he maintained an upbeat and friendly attitude every time he spoke to them on the phone and through email. Thank you for your help and I hope this gives you a good idea of what has happened over the last month. This situation has not been resolved.
I called to file a claim the week before the hurricane (Ike - Sept 12th or 13th). I was told that someone would be to my house the next week. No one ever called me back. I called again the week after the hurricane and was told that the company who would handle our claim may have had damage and may not be available yet. I waited another week and called again and was told that someone should have called me by now....they did not. I called again the following week and gave the model number and serial number and was told that the part had to be ordered, it would be in within 10-14 days. I had not heard back (again) so I called on Monday October 13 (now a full month after the hurricane) and was told that we may not cover this item (after I had been told it was ordered and I was just waiting for it to come in).
The problem with the stove is that while we were cooking on the front left eye, we heard a popping noise and looked at it and saw that the front left corner had cracked off! We are new home buyers and our policy says no fault so I am incensed that Allied Home Warranty says that they will not cover the crack. I still have not had any satisfaction and am unable to use the front left eye on my stove.
Allied Home Warranty Company Profile
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