Suit Says Warranty Program Encourages Shoddy Repairs

Law360, New York (March 15, 2012, 6:31 PM EDT) -- American Home Shield Corp. provides consumers with home appliance warranty plans that reward service contractors for claim denials and substandard repairs, a Florida homeowner alleged in a class action in federal court Thursday.

The company's home protection plans are supposed to cover the repair or replacement of home appliances that suffer "normal wear and tear," according to the complaint by plaintiff Jay Arnesen on behalf of a nationwide class.

However, AHS systematically denies coverage under exemptions in the policies for improper maintenance or misuse of the...
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