So my parents have been paying for Choice Home Warranty for several years. It is a Home Warrantee Program that insures Refrigerators, Washers, Dryers and other household appliances.

Reviews for them are actually quite terrible: https://www.yelp.com/biz/choice-home-warranty-edison-12

Anyhow, a few days ago, their washer broke down. It is a first repair they requested assistance with under the policy. The repairman came and after that they received the following e-mail from the company:

Dear AALegend Sr,

This letter is in reference to your Washer claim. We have been processing your claim for coverage and a determination has been reached.

During the coverage period, our sole responsibility will be to arrange for a qualified service contractor to repair or replace, at our expense, the systems and components mentioned as "Included" in accordance with the terms and conditions of your contract so long as such systems and components:

Are located inside the confines of the main foundation of the home or attached or detached garage (with the exception of the exterior pool/spa, well pump, septic tank pumping and air conditioner);and
Become inoperative due to normal wear and tear; and
Are in place and in proper working order on the effective date of this home warranty contract. This contract does not cover any known or unknown pre-existing conditions. Coverage is for occupied, owned or rented residential property.

Your claim was submitted on 05/21/19 and was assigned to Total Appliance Solutions Inc on 05/21/19. After the appointment date on 05/22/19 the technician submitted details pertaining to your system failure.

It has been determined that due to the washing machine having been overloaded with washables, the rear tub, the gasket, and the spin basket have been strained and have failed, and are now in need of replacement.

Please refer to your terms and conditions section F number 8; we are not liable for repair of conditions caused by misuse or abuse.

Appeal Rights

You may request a review of this claim in writing by visiting (url enclosed). The request for review must be sent within 7 days of receipt of this letter and state the reasons why you feel your claim should have been approved.

Under normal circumstances, you will be notified of the final decision within 5 business days of the date your request for review is received.

Nothing contained in this letter should be construed as a waiver of any rights or defenses under the policy. This determination has been made in good faith and without prejudice under the terms and conditions of the contract, whether or not specifically mentioned herein.

Thank you for choosing Choice Home Warranty to be part of protecting your home from unexpected covered repairs.

Sincerely,

Team CHW

My parents have actually been using the machine very lightly for just a couple of loads a week without ever overfilling it, but then again the machine is about 7-8 years old. What is my best approach in disputing/appealing their determination? Also, is it a reasonable idea to take them to a Small Claims Court should they still choose not to pay up? Probably, blasting them on Social Media is not the way to go since their reviews are so bad already that I doubt they care. But who knows?

Seriously, Insurance is for life changing ****. Like If you die or are injured, your house burns down, or your car is totaled. There is no reason to have insurance on piddly stuff like your appliances! A simple appliance costs a few hundred bucks! And if you have some sick refrigerator that's worth 10k, well then I hope your able to eat the loss because your buying a fridge for 10k for christs sake.

This being said, you bring up a good example of why exactly it's a horrible idea to insure this stuff. If in the unlikely event you actually need to use it, they will refute it.

I don't have an answer to your question, but I do have advice. When it's all said and done, get rid of this insurance forever.

I completely agree with your last point and that was actually my first suggestion (to get rid of the policy going forward) when I talked to them and looked up the reviews on the company.

Given that, does anybody have suggestions to maximize the chances of them getting anything? Not only do I want to help my parents, but it would also feel very good to stick it to the company that operates in a rather unethical timeshare-ish manner.

This is probably a standard response they send people hoping they'll buzz off. People are nice/rich/don't want conflict, so they just take it up the ass. If even 10% do that's 10% lower payouts which is a lot of money. The ones that complain loudly they'll pay. Proclaim your innocence of overloading and demand written proof that the defect was caused by "overloading" instead of "normal wear and tear". Given that the washer is 7 years old, that to me is powerful evidence that it's normal wear and tear and not misuse or it would have failed a lot earlier. If you have an ombudsman/consumer affairs then threaten to involve them. If they deny your response and you have a lawyer friend, have them write a letter on their letterhead.

As onemoretimes said, your parents are life fish and need to be informed of said fact.