889 Ridge Lake Blvd, Memphis, TN 38120, USA
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4 comments

I contacted AHW to replace my hot water heater. Before I did, I had a plumbing contractor quote $800 to replace it at my cost.

After AWH's contractor came out, AHW contacted me to say they would cover the replacement, but the contractor would charge $400 for reconfiguring the plumbing, $300 for reconfiguring the gas line and $100 to take the new heater up to the 3rd floor. Guess what?

$800 either way.

I went with the original contractor who did not reconfigure anything and took the heater up in our elevator. He said it was an easy job and was in and out in less than 2 hours.

Product or Service Mentioned: Plumbing Service.

Reason of review: Pricing issue.

Preferred solution: Let the company propose a solution.

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Anonymous
#1637128

The contractor takes the fall, if the attorney general steps in. AHS is doing what they say they will do: offer “coverage”, send a licensed contractor for a service fee, and apply the “coverage”.

So they aren’t in violation of their plans. Whenever money has to be spent, it comes out of the CONTRaCtOr’s pocket, not AHS. So the biggest problem is that nothing touches AHS. Even if the attorney general ordered them to replace some equipment , it is the CONTRaCTOR who has to pay for it.

Without reimbursement.

AHS is basically untouchable. The only way to get to them is for customers to refuse the warranty policy in the first place.

Anonymous
#1637062

That is what happens because AHS is only paying the plumber $150 flat rate whether he does the job or not. He has to make up the difference by charging you for anything extra that AHS will let him, like access issues, and modifications.

You might as well quit with the home warranties because they all do this. They only pay the contractors a small service fee whether they do the job or not—many times the contractor has to “eat” parts, labor and replacement equipment costs in order to remain on the service provider list. They get a ton of calls for very little money, and it’s up to the plumber how he wants to play the game. He can do the work for free, get a denial of your claim, or pass on the costs to the homeowner where he can.

If he’s doing the work for free, the service is SLOW, and there are many complaints about how long it takes for a simple part to come in. That’s because the contractor is having to eat that one.

AHS doesn’t care as long as they aren’t getting charged more than $150 for each plumbing call. This is the game, now, how to get homeowners to stop playing it????

TranquilSumatranRhinoceros311
to Anonymous #1637104

Thanks for the input. Our "warranty" came with the house when we bought it.

Certainly wouldn't buy or renew. Sounds like the AG needs to shut these companies down if what you say is true. I don't think many consumers realize the scam that's being perpetrated on them and reputable contractors. Our new hot water heater mounted-up exactly like to old one.

No changes were necessary to water or gas lines.

Trying to charge for modifications that are not necessary seems pretty shady too. Perhaps if contractors also refused to play the game the rules might change?

Anonymous
to TranquilSumatranRhinoceros311 #1637112

They can’t refuse to play. AHS takes over a small business with promises of a large volume of calls, and then they tighten the noose in price.

once they drive the price down, its over for that plumber. Then AHS throws that one away and gets another plumber. As long as there are customers willing to participate, there will be contractors to serve them. AHS abides by their policies, and the contractor is just as much a victim as the consumer.

Once the contractor figures out how to play the game, they can make some money but it is dirty. But once they get good at the game, the complaints stack up and it’s time for a new plumber. It’s an ugly business. Realtors hands are dirty too, because they use these warranties to satisfy the buyer and put an early end to the price negotiations on house sale contracts.

The plans are worthless, but it gets the job done. The realtors then sometimes pull some strings and the contractors have to eat some more repairs (not AHS) and then the next victims get hit even harder.

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