What To Do When Home Warranties Are Denied


What To Do When Home Warranties Are Denied. Don’t let a home warranty denial ruin your budget. This guide tells you why claims get denied and how to fight back to get the coverage you deserve.

Frustrated by a denied home warranty claim? Don’t give up! Learn the common reasons for denials and how to successfully appeal the decision.


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Introduction: What To Do When Home Warranties Are Denied.

Home warranties offer peace of mind, knowing you’re protected from unexpected repair costs. But what happens when your claim is denied? It can be incredibly frustrating but don’t despair. There are steps you can take to dispute the decision and secure the coverage you’ve paid for.

Firstly, let’s look at the meaning of Home Warranties.

What are Home Warranties?


A home warranty is a great way to ensure the maintenance of household systems or appliances for a set period. It is a separate service contract from homeowners’ insurance, and it should not be confused with a structural warranty, which is typically used by home builders and buyers for new homes. With a home warranty, homeowners can have peace of mind knowing their household systems and appliances are covered in case of any unexpected issues.

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How a Home Warranty Works

When an appliance or system in the house gets damaged, the homeowner can rely on their home warranty provider for assistance. The warranty provider typically collaborates with trusted home service providers, such as plumbing or electrical contractors, to ensure prompt and efficient service delivery.

Once the homeowner files a claim, the warranty company immediately dispatches one of its partnered providers to assess the damage and provide a detailed report to the warrantor.

This helps the homeowner to get the necessary repairs or replacements done without any undue delay.

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What Home Warranties Cover

After conducting a thorough assessment, the report sheds light on the degree of damage sustained by the appliance or system, along with its potential causes. The home warranty company then verifies whether the policyholder’s contract covers the damage.

Once approved, the warrantor collaborates with a trusted contractor to ensure the system is restored to its optimal working condition through repair or replacement.

Home warranty plans, also known as residential service contracts, can be a great way to safeguard your major appliances such as refrigerators, stoves, and water heaters, and even your home’s systems like HVAC, plumbing, and electrical.

However, it’s important to read the warranty document carefully to understand what is covered and what is excluded. Some warranties may offer basic coverage for garage door openers, while others may require additional premiums.

By understanding the terms and conditions, you can make an informed decision about which home warranty plan is right for you, providing you with peace of mind and protection for your home and its systems.

Each feature or system that requires maintenance will be subject to a new service fee. In the event of multiple faults, such as a malfunctioning oven and refrigerator, homeowners will incur two separate trade fees charged by the contractor. These fees typically range from $55 to $150.

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Common Reasons Home Warranties Are Denied

  • Coverage Exclusions: Your contract outlines what IS and ISN’T covered. Make sure the problem you’re facing is clearly covered.
  • Lack of Maintenance: Home warranties often require you to demonstrate proper maintenance. Keep records to prove you’ve looked after your appliances and systems.
  • Improper Installation: Botched installations might not be covered, even if the appliance technically is.
  • Pre-Existing Conditions: Problems that existed before your warranty began may be excluded.
  • Coverage Limits: You may have reached your annual or per-item coverage cap.

Disputing a Warranty Denial

  1. Review Your Contract: Double-check that your claim truly aligns with the coverage.
  2. Contact Your Provider: Request an appeal, take detailed notes, and ask for the denial reason in writing, along with the inspection report.
  3. Get a Second Opinion: Consider paying for an independent technician’s assessment to bolster your appeal.
  4. Follow the Appeals Process: Each company has its process; provide all requested documentation promptly.
  5. Escalate if Needed: If your appeal fails, contact your state’s Consumer Protection Office, or relevant regulatory agency, or file a Better Business Bureau complaint.

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How to Prevent Claim Denials

  • Understand Your Coverage: Before problems arise, know what’s covered.
  • Maintain Your Systems: Keep meticulous maintenance records.
  • Act on Early Warning Signs: Don’t ignore strange noises or minor malfunctions. Address potential issues early.

Wrapping Up on What To Do When Home Warranties Are Denied.

A denied home warranty claim doesn’t have to be the end of the road. By understanding the reasons for denials, following the appeals process, and taking preventative measures, you can increase your chances of getting the repairs you need covered.

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