When we purchased our home, the mortgage company offered us an insurance protection plan issue by BHWC that would cover many of the appliances in the new house for one year, with a $50.00 deductible. Ten months after we purchased such insurance policy, our water heater broke. We called the insurance company to report the claim. The insurance company sent a technician to inspect the water heater, and sure enough the unit had broken down and needed to be replaced.
The adjuster from BHWC called us and told us that instead of the $50.00 deductible we had to pay 150.00 because the water heater was located in the attic, and this was more expensive to replace than a "conventionally located water heater." He named clause No. 4 of our contract and told us that such clause said that if the water heater or any other appliance was located in the attic the deductible was going to be more.
I read the entire contract and found nothing in regards to an additional charge if an appliance was located in the attic. I tried to reason with the adjuster and he just ignored what the contract read and told us that we had to pay the $150.00 if we wanted our water heater to be replaced.
So be careful when someone offers you Home Warranty Insurance Policy. When they want to sell you the policy they make sound like it is the best deal you can get, but when you need the protection they somehow twist things around and charge you from BHWC, also knows as LAND AMERICA HOME WARRANTY.
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