Home Warrenty Co. Bankrupt! What Recourse?

[nchnted]

What is the name of your state (only U.S. law)? New Mexico
We bought our house 6 months ago and split the fee for a one year home warranty plan which was chosen by the seller. The warranty company also did the home inspection and it warranted the radiant heating system and boiler. It broke on a cold weekend day (of course ) and when we called them for help we discovered they'd gone into bancruptcy. Our repair bill was $800 and the plumber said a new system was needed and quoted $3500 to replace it. The sellers daughter was the listing agent and we had an agent from a different co. What recourse do we have for compensation and for continued coverage?

[tranquility]

The only real "recourse" I see is to join the insurance company's list of creditors in the BK. While we could play issue spotting and imagine other causes of actions, that's your only real option. Sorry. You will, at best, get pennies on the dollar. You can try to purchase a new insuance policy if you wish.

[nextwife]

Know what? The parent company of the oldest Title Insurer in the nation also went bankrupt last month. LOTS of companies are going bankrupt, and many appeared financially sound and NOBODY could have anticipated it.

[Cedrus]

Call your state insurance commissioner and find out if another home warranty company is taking over your busted one.

Read your contract carefully and look for names of re-insurers who will be other, distinct insurance companies and start calling them.

[HomeGuru]

Originally Posted by nchnted

What is the name of your state (only U.S. law)? New Mexico
We bought our house 6 months ago and split the fee for a one year home warranty plan which was chosen by the seller. The warranty company also did the home inspection and it warranted the radiant heating system and boiler. It broke on a cold weekend day (of course ) and when we called them for help we discovered they'd gone into bancruptcy. Our repair bill was $800 and the plumber said a new system was needed and quoted $3500 to replace it. The sellers daughter was the listing agent and we had an agent from a different co. What recourse do we have for compensation and for continued coverage?

**A: you may be out of luck if there is no state regulatory oversight.