Home warranty company in hot water with the state

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by JESSE JONES / KING 5 News

Bio | Email | Follow: @getjesse

KING5.com

Posted on October 7, 2010 at 11:32 PM

Updated Thursday, Oct 7 at 11:32 PM

I first told you about Tim Cook last summer. He paid $200 for a home warranty with a company called Capital Home Shield.

"They gave me a good price. Said they were a new company and we're breaking into this market. Give us a chance," said Tim.

Problem is, the company refused to approve the repairs to his cooktop stove until we got involved. At the time, he was pleased.
But guess who was watching the story? Washington state Insurance Commissioner Mike Kreidler. His office opened an investigation into Capital Home Shield.

"In the case of this particular warranty company, they were not authorized to do business in the State of Washington," said Kreidler.

Kreidler's office is sending a cease and desist letter to the company. Capital Home Shield can either get registered or get out of Washington.

"Our investigation is ongoing at this point, but every indication is this is a problem company and we clearly want to make sure they are not writing any business in the State of Washington," said Kreidler.

The company also sold Cook a policy for a home in Arizona. The company isn't registered there, either. Based on our report and the work of Kreidler's office, even more states are now looking into Capital Home Shield.

"If they don't want to do business the right way, they should stop," said Tim. He would be happy about the actions taken against the company, but his washing machine just quit. This time, the company is making sure it gets fixed. In fact, it may be the last claim they ever approve in our state.

An executive from the company says he will give refunds to anyone in the state who wants one. If you have a policy with Capital Home Shield, please contact the Insurance Commissioner's Office and me.

Related:

File a complaint with the Office of the Insurance Commissioner

List of registered service contract providers in Washington State

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