365 Home Warranty Review 2020

By Julie Thompson | Advertiser Disclosure

365 Home Warranty recently went out of business caused by the company’s inability to file annual reporting for two consecutive years. It has shut down its website and stopped communication with all policyholders.

Keep reading to learn about the warning signs to watch out for when choosing the best home warranty company, our top-rated recommendations for home warranty coverage, and tips for helping you choose the right home protection plan for your home.

Why 365 Home Warranty went out of business

On August 16, 2018, 365 Home Warranty, based in Edison, New Jersey, was no longer allowed to do business according to the New Jersey Department of the Treasury Division of Revenue and Enterprise Services. They revoked 365’s business license for not filing an annual report for two consecutive years.

365 Home Warranty has an “F” rating with the Better Business Bureau (BBB) and over 30 complaints regarding billing, guarantees/warranties, and a problem with a product or service. The majority of the unresolved or unanswered complaints date back to 2018.

How to avoid a home warranty scam

To avoid being scammed by a home warranty provider like 365 Home Warranty, watch out for the following factors:

  1. Fine print that changes each year

Some warranty companies will change the fine print in your contract when you renew coverage. Most people don’t read over the changes and feel taken advantage of when a repair that was covered in their initial year is no longer covered.

  1. Slow reimbursements

If a home warranty company gives you the run around about coverage and frequently offers a reimbursement check, this can be a red flag. Several 365 customers complained of the company promising to provide reimbursement checks after the appliance repair was completed and a form was submitted.

If you are always paying out of pocket for home repairs and have to fill out forms to get reimbursed, you may be better off finding a home warranty company that will approve your repair the first time, so you don’t have to provide the cash upfront.

  1. Repair delays

Your home warranty company should be able to provide you with a qualified technician within 24–48 hours after receiving a claim. Additionally, determine if your home warranty company can provide specialized contractors that meet your standards and don’t stand you up after scheduling a home repair.

  1. Poor customer service

If your home warranty provider doesn’t answer the phone or respond to service requests, this alone should prompt you to look elsewhere. Customer service representatives should be available to take your call whenever one of your major home systems or appliances breaks down.

  1. High-pressure sales tactics

Home warranty companies base a lot of their revenue on acquiring new customers and retaining their current ones. However, if a company pressures you to extend your warranty past one year, especially if you’re a new customer, you may want to consider other coverage options.

Additionally, a phone call to a customer service representative once a year can keep you up to date on any contract changes, pricing promotions, and issues you may have regarding your policy or the company itself.

Our top-rated alternatives to 365 Home Warranty

If you’re searching for an alternative to 365 Home Warranty, consider top-rated companies in the home warranty industry like Choice Home Warranty, American Home Shield, and The Home Service Club—all provide free quotes, comprehensive home warranty plans, and excellent customer service.

  • Covers all systems and appliances regardless of age
  • Provides initial sign-up bonuses like one month of coverage free and $50 off
  • Customer service is available 24/7

  • Available in 49 states, excluding Alaska
  • Allows customers to customize their home warranty coverage
  • Offers discounts on name brand appliances

  • Policy takes effect within 10 days of signing up
  • Offers coverage on items regardless of age, make, or model
  • Will replace items if they can’t be repaired

Frequently asked questions about home warranties

What’s the difference between a home warranty and homeowners insurance?

Homeowners insurance protects your home if it receives structural damage from a natural disaster, fire, or theft. A home warranty covers your home systems and appliances, like your air conditioning, clothes washer, and clothes dryer, that break down or fail due to normal wear and tear, and provides peace of mind.

How much does a home warranty cost?

On average, a home warranty costs around $300 to $600 per year and service call fees range between $75–$125.

What’s the difference between a home warranty and an extended warranty?

An extended warranty is often offered at an additional cost when purchasing a home system or appliance. This warranty may add up to a few years of additional coverage. A home warranty can provide coverage for all of your home systems and appliances regardless for a flat monthly fee.

How can I find the best home warranty?

Always do your research before making your final decision. Ask friends and family for home warranty company recommendations and talk with customer representatives before signing up for a plan. Finding a quality home warranty company that offers transparent policies and quick claims service can save you hundreds of dollars on necessary home repairs and replacements.

Final thoughts

If you have had a bad experience with a home warranty company, it can be easy to discount all home warranty providers. However, our recommendations give you a great start for restoring your confidence in honest home warranty coverage.

Every person and every home needs the plan that’s right for them. Check out some of our other expert reviews to get all the information you need to find the right home warranty for you. Remember, each of these companies gives a free quote.

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