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First American / How the Scam works

1 CA, United States

This Home warranty company never pays for its customer repairs. They have a way to avoid payments or take more back from the customers. With my recent experince, here is the way it works:
If any appliance breaks down, a technician (approved by them) will come and inspect the appliance and then he will send the company a report. In the report, they always include few things, which they consider modifications or not covered items. They charge about $400 to $500 for these "modifications" or "not covered items" and this we have to pay from our pocket and not covered by First American. So when we contact
First American, they will say that they will repair the appliance but you have to pay $400 to $500 for these "modifications" or "not covered items" for their approved repair company. Iy you go directly to any other local appliance repair company, they may charge about $250 to $300 for the complete repair.
So now you have no other choice but to go for a cash-out option with First American. Now the company will say that we will pay to $100 (if you are lucky) and nothing more because they have a contract price with their vendor and that is $100 only. So you end up paying the other $200 from your pocket for the repair from a local company.
I have been with this company for more than 3 years but this is my first experience and will be my last year with them...

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