• Action 9: Man learns importance of knowing contract terms

    By: Don Griffin


    John Karpeh was upset he had to shell out $4,100 to replace his broken AC system, although he has a home protection warranty.

    “It makes me very, very mad,” he said.

    Karpeh said the problems started last May when his unit stopped cooling, and he called Homesure, his warranty company.

    “They sent different contractors to take care of the problem,” he said.

    Karpeh said the repairs didn't last, so he hired his own contractor, who told him the unit needed replacing at a cost of more than $4,000.

    But Homesure sent him a check for only $1,068.

    Karpeh has been a Homesure customer for eight years, and felt it was unfair.

    “They just want to make profit on account of the customer,” he said.

    The mistake Karpeh made was not reading his contract. If he had, he would have found that Homesure, like many warranty companies, set a maximum payout to replace units. Theirs is roughly $1,000.

    So Action 9 called the company to ask them to review Karpeh’s claim since he'd been a long-time customer.

    The company agreed to make an exception and pay Karpeh an extra $1,000 toward his repair bill.

    They sent him not only a check, but a copy of his policy to read.

    He now tells others: “Know what is in your contract and who you're dealing with.”

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    Action 9: Man learns importance of knowing contract terms