Superior Home Protection

Recently, a TINA.org reader’s heart jumped when he received a letter with the name of his bank and the words “Final Notice” on it.

Things only got worse once he opened the envelope. The letter stated at the top, in big, bold letters, “IMMEDIATE RESPONSE REQUESTED,” and referenced a short time frame in which to call a number to “avoid any unnecessary delays” for a home warranty that “may be expiring or may have already expired.”

“Failure to call and prevent a potential lapse of coverage could result in you being liable for all costs associated with any home repairs,” the letter warned.

The problem? Our reader never had a home warranty in the first place. And if you happen to notice the barely legible fine print at the very bottom of the letter, he’s likely not alone:

Not all consumers have previous coverage. Superior Home Protection is not affiliated with your current mortgage holder.

Although our reader didn’t have a home warranty, he reported that he recently renewed his home equity line of credit, or HELOC. What many consumers may not know is that closing on a HELOC (or a new home) means information including the name of the lender, the names and address of the borrowers and the amount of the loan becomes part of the public record, available to marketers like Superior Home Protection to use to try to scam homeowners.

But putting aside the letter’s misleading language, are home warranties even worth it?

According to the FTC, these warranties may only cover part of a product, duplicate coverage you already have or make it nearly impossible to get repairs done. And the complaints and reviews left on Superior Home Protection’s BBB page, where the company has an F rating, tell a similar, if not worse, story.

Superior Home Protection did not respond to TINA.org’s request for comment.

The bottom line

Be wary of any company that uses subterfuge and scare tactics to get you to renew something you never had in the first place.

Find more of our coverage on mortgage scams here.