3OYS: Home warranty company goes out of business

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By Christina O'Haver By Christina O'Haver

SCOTTSDALE, Ariz -- Sheryl Schanes enjoys relaxing inside her Scottsdale home.

"I recently purchased this home a couple of years ago, and everyone basically told me that I have to have a home warranty because of the air conditioner and the heat and everything breaks down," she said.

So, Schanes went online and found a business called Sensible Home Warranty.

"I signed up for two years, so it was just under $700 with a $45 service fee," she said.

One day, Schanes had an issue with her ceiling fan.

"I actually used them once and a gentleman did come out. He did the work and it was fine," she recalled.

But a short time later, Schanes realized one of her electrical outlets was no longer working.

When she called the home warranty company to schedule a repair, she got nowhere.

She said she has been calling the company for over a month.

"I’m not happy with the service," she said. "It's extremely frustrating because when you do call the company, it's a third-party answering service."

She said she has left multiple messages and they have not been returned.

She has even gone online to complain.

"My mistake wasn't going to the Better Business Bureau site, which I highly recommend everybody to do because then I saw that they've been reported more than once," she said.

Two years ago, 3 On Your Side reported how an East Valley couple had a similar issue with Sensible Home Warranty. Fortunately, we were able to resolve the matter, but since then complaints about Sensible Home Warranty have skyrocketed.

The Better Business Bureau has more than 1,600 complaints, and to make matters worse, Sensible Home Warranty has been banned in three states.

We tried contacting Sensible Home Warranty several times regarding Schanes' situation and after we did, the company changed its website to say, “It is with great regret that we must notify you that Sensible Home Warranty has shuttered its operations. We wish you all the best of luck.”

Schanes said she doesn't need luck. She just wants what she paid for.

"They were not sensible or reliable. I think they need to change their name," she said.