Florida Halts Home Service Warranty Seller

Florida has ordered a home service warranty firm to stop selling contracts.

State officials say the firm is not licensed to sell the products and has a reputation for denying claims.

The Office of Insurance Regulation said it began investigating National Home Protection Inc.’s marketing and claims handling practices earlier this year.

“This company has been selling these products without a license all across the country,” said Insurance Commissioner Kevin McCarty. “Florida law clearly authorizes me to take action to stop the practices of unlicensed entities to protect consumers in this state.”

Last April, New York Attorney General Andrew Cuomo reported that his office had received 340 complaints against National Home from consumers in at least 32 states. His office filed suit against National Home, a New York City-based company, alleging fraudulent business practices and freezing the company’s assets to ensure restitution for defrauded consumers.

Florida’s OIR is also ordering National Home to honor all policies that are in effect for the duration stated in each contract.

The company has 21 days to file a challenge to Florida’s action.

Home service warranties typically cover repair or replacement of basic home systems such as plumbing and heating and major appliances.