Hot Water Heater Extended Warranty - Any lawyers that can give advice?

[CraigSca]

Hey guys - sorry for the long post, but I'm at my wit's end and at this point FOFC is the straw I'm grasping.

3 years ago our old hot water heater was dying and I decided to upgrade to a brand-new Rheem "Hybrid" hot water heater. It's "hybrid" because it can work as a regular electric water heater but also has the ability to use a built-in heat pump. Since we live in Florida, I thought it made sense - and it did - much less energy usage, cost-savings, etc. However, I always have a concern with new technology so I thought I would purchase an extended warranty contract through homedepot.com (it's 3rd party, administered through a company called Squaretrade, a subsidiary of Allstate Insurance).

On Sept. 30th of this year, I started getting alerts from the water heater. This is after 3+ years of usage. I got the alert one other time, reset it and it worked fine. This time it did not. So, forgetting I had a service contract, I called Rheem and they recommended a company called Pro-Tech. Pro-Tech came out the same day and did some troubleshooting directly with Rheem (the water heater is internet-connected). After looking at it, they found that the circuit board the connects to our in-house electric had started melting (and actually could have caused a fire). The Rheem technician says that the water heater cannot be repaired, it must be replaced. The good news, the water heater has a 10 year warranty for the system, but only one year for parts and labor. However, the Pro-Tech technician game me a quote to install the new water heater - $2500. Good Lord! The water heater was $1400 including tax three years ago!

I started looking around in my documentation and lo and behold, I remembered I bought a service contract for the heater! Man, am I smart or what?! (shoot me) I found the website and saw they had record of my service contract and opened a claim online (as you are told you MUST do - cannot be done via phone). After creating the claim, I immediately called and spoke to a person, explained my situation and he told me I was "ahead of the game" because I already had the diagnostics done. They needed a copy of the invoice so they could reimburse me. Once they receive me invoice from Pro-Tech I can expect a review in 1-2 business days. Ok...in the meantime, no hot water in the house.

Doing my due diligence, I call the next day. I finally speak to a person and they say something to the effect of, "ah, you're calling about your reimbursement!" I let them know that I didn't really care about the $49, I just needed a new hot water heater and Rheem tech support confirmed that I do need a replacement. So, what's with the 1-2 days to review?

After day 3 and still seeing the website list the claim as "In Review" I call and ask to speak to a supervisor. They said, "ah, let me give you an update on the reimbursement!" I stop them and let them know I am not interested in the reimbursement, my family has no hot water! Oh, sorry, they say, it's in the wrong queue, I need to send this to the major appliance team, please give it 1-2 days for review. I'm dying.

2 days later I call - yes, you need "2 full business days" for review, check in tomorrow. Next day I call again: "Yes, let me check. Ah, I see - see, the plan you have would only cover labor not installation of a replacement appliance." My response, "really, are you sure, because it literally says here in the agreement that you will cover the cost of labor or installation if I am in need of a replacement. I am in need of a replacement, Rheem said so." The response - "we can only provide labor, not installation." "Labor IS INSTALLATION!" Next thing, I drop some f-bombs, etc., because I can't believe what I am hearing. They hang up on me.

At this point, I am at a loss - even though I have a signed agreement with them, they are telling me to go "f" myself. I decide to call Rheem directly. Yes, it's under warranty, but since I bought it from homedepot I need to work with them to get the replacement in store and installed. I call homedepot - it was bought on homedepot.com so I am not allowed to go to the store, I need to speak with the national number. After an hour on the phone, they can only send a new water heater to the store but cannot install and before they do that, I need to uninstall the current one and bring it back to the local store (yeah, that'll be easy - "hey hon, can you help me uninstall and lug the water heater into the back of the minivan?")

Ok - so Rheem and homedepot can get me a new one, but they are not on the hook for install. Their recommendation is to go through Squaretrade as I have an agreement with them. I really don't want to, but I swallow my pride and spread the sugar on real thick because yelling at them was not a tact they were open to.

So, Oct 7 (day 8 of no hot water) I speak to their support and ask to speak to a supervisor (her name was Ximena). I tell Ximena my story and she repeats the line of "in review, 1-2 days, but I will escalate it". Oct. 8th, I talk to the person, give them the story (it seems no one has a clue as to what i'm calling about each time I reach out) and I am given Jeani as the supervisor on duty. "Craig, it's in review, it will be 1-2 days, but I can see there is some movement on it. Can I offer you a check for $70 for your trouble?" Sure, but I KNOW I won't receive it.

Oct. 10th, today, I call - didn't call yesterday because we were prepping for Milton. I speak to Jason who is asking me what I am calling about - looks at the case and then begins the same damn spiel about me calling for a reimbursement. I AM NOT CALLING about a REIMBURSEMENT. It's been 11 days - my family does not have hot water. I ask for a supervisor and I'm given Francie. Francie looks at the case and puts me on hold to speak to the appliance team. She comes back on and says, "the appliance team has determined that the only way they can help me is by reimbursing me for the cost of the hot water heater". I said, "ma'am, I'm not interested in that. Rheem will already send me a new hot water heater, as it is under a warranty. However, I just need you guys to set up someone to install it."

"Well, who told you we would install a new one?" I am LOOKING at the contract: Page 5, "Water Heater Plans...this Protection Plan will cover the cost of labor to repair the water heater and the cost for reinstallation in the event your water heater needs to be replaced." -- that is RIGHT from my plan on THEIR website.

"Well, we've determined the best way to go about this is to reimburse you." Note: they want to send a check for $1400 - the cost in 2021. The same hot water heater retails for over $2k. "Ma'am I'm not interested in that. Rheem has already said they will ship a new one, I just need you to find someone to install it."

"I'm not sure we can do that. (what the hell). Let me have the team review it to see if we can do it. Please allow 1-2 business days....." KILL ME NOW

I told her that I KNOW nothing will happen in 1-2 business days, I've been told that multiple times in the past 11 days and NOT ONCE have I received a single response from them. She said she would call me on Monday (after 1-2 business days) to give me an update. I know she won't.

SO - TLDR - what is my recourse here?! The only thing I can think to do is get a lawyer(?). I am dumbfounded that they will not live up to the paperwork from their own website. Is it just a game where they delay and delay and I eventually just buy a new water heater because I am sick of ice cold showers? I really just don't know what to do anymore...

[Ksyrup]

I'll PM you.

[dubb93]

Not a lawyer-

They don’t want the water heater? They are willing to pay you the cost and you can have it replaced under warranty? I know your quote to install is higher than the cost of the item (you need other quotes that seems excessive). Maybe see if you can find someone to install the new one for what they are willing to pay you?

[PilotMan]

I'm guessing at this point it would be you do the repair and replace, document the costs, pay a lawyer a lot of money, and sue for breach of contract and hope your pockets are deep enough to cover your lawyer expenses and then hope that the settlement that comes out of it is enough to make you whole and cover your lawyer and get you some extra on the side for the runaround.

[CraigSca]

Literally on the phone with them right now because I actually received an email from them saying there was an update (the FIRST time I have received one):

I was told that they are holding to their "send a check or give me a homedepot gift card". I need to sign an affidavit (which I assume will say something to the effect of - "the water heater is indeed dead"). The gift card will take one day. The check will take 6. I'm thinking I call homedepot and use them to reach out to Rheem to get the replacement. Hopefully the $1400 will cover removal of the old water heater and install of the new one.

Ksyrup, thanks for reaching out via DM. It sounds like this is my best and last resort.