Home Warranty denying coverage on HVAC

[Ben Kirchner]

I'm dealing with American Home Shield. The HVAC in my rental property has gone out. Long story short, American Home Shield was told by their subcontractor that there are missing parts - "some wires and the circuit board." Their subcontractor said it looked like someone had removed screws. Admittedly, I'm no HVAC expert, and didn't have the unit thoroughly inspected by an expert. Therefore, I cannot confirm or deny this. However, I have heard a handful of complaints of AHS trying to get out of covering appliances that go out. I cannot help but wonder if I'm falling victim of this, and what I should know, or do for this.

Other issues I've had with AHS throughout this entire process:

- Once the tenant told me the AC was out, I immediately contacted AHS (7/3/17)

- AHS set up someone to come out on 7/6/17

- My tenant said the technician sent out originally said "the unit needs to be replaced."

- I have since called AHS 5 times. Each time I've been on hold anywhere from 25-60mins. When I speak to a person, I had each time been told "we are waiting for the final quote of things that need to be done from Island Breeze (the subcontractor). We will call you back." Each time they assured me they would reach out to Island Breeze and call me back later that day, or one time they said they would call the next day. Not once did I receive a call back. I always had to call them again, just to be told they were still waiting on Island Breeze.

- With the above, I myself called Island Breeze and was able to speak to someone within 10 minutes, who told me they submitted the report to AHS on 7/9/17. I had spoke to AHS 4 times since 7/9/17, and each time told that they were still waiting on Island Breeze.

- Someone from AHS FINALLY calls me, as they were prompted by Island Breeze to call me. The AHS rep said they didn't have a report before, and were just notified of this. They say the HVAC unit is not completely put together, and they are denying the claim for coverage on it. To get a 2nd opinion would cost me another $125(which i paid for the 1st opinion). Given how awful they have been with time efficiency and communication, I do not really wish to pursue this.

- I'm suppose to get a call back from a supervisor, which I requested yesterday (7/11/17), but I am not optimistic I will receive this.

All this time, my tenant has had to find alternative housing, as it's summer in North Carolina. At this point, I need to get the AC back up and running ASAP. I've reached out to a HVAC company. I will likely schedule something with them this week.

I just want to know my options on how to go about things with AHS. Am I simply screwed here?  

[John Blackman]

Sounds like my experience with warranty companies as well.  

The best insurance is a regular checkup on your HVAC and water heaters every 6 months.  This is usually about $200 a year (I use ARS, but there are plenty others) depending on where you are.  They will catch all sorts of small issues before they become big ones and can extend the life of your mechanical systems for many  years.  It doesn't feel good to add it to your Schedule E, but I've found it to be worth while in the long run.