Updated Nov 1, 2022
Updated Nov 1, 2022
Whether you’re a first-time home buyer, seller, or realtor, investing in a home warranty plan is an absolute must. When major home systems and appliances break down or face maintenance issues from normal wear and tear, the cost to repair or replace these items can be overwhelming and a home warranty can provide peace of mind.
Even so, many homeowners still feel doubtful about purchasing a home warranty policy out of fear that their claims might be denied. So, what do you do when the home warranty company won’t honor the claim? In the guide below, we’ll explain why some warranty claims are denied and what you can do to try and ensure approval.
This might seem obvious, but many homeowners overlook the details of their protection plan and expect all items to be covered. This is why it’s important to read the fine print of your residential service contract before signing on the dotted line. Luckily, most home warranty companies have sample contracts available on their websites under their frequently asked questions or labeled in the footer as “Terms and Conditions.”
When a system or appliance is incorrectly installed (a common occurrence), it’s not going to work properly and will require some assistance. Unfortunately, improper installation cases are almost always denied. However, First American Home Warranty is one of the only home warranty companies that actually covers items that have been improperly installed, modified, or maintained.
Claim denials may also happen frequently if systems or appliances aren’t up to code, so consider getting a home inspection before coverage kicks in to ensure that your items don’t have any code violations.
It’s possible your home warranty company doesn’t cover all of the parts in your system or appliance. For example, your provider may not cover non-mechanical parts of items like knobs or handles on a washer or dryer or the doors of dishwashers.
Pre-existing conditions are defects or mechanical failures that may not have been detected by a simple visual exam or mechanical test. These issues pre-date the purchase of your warranty policy and most home warranties only cover items purchased after the start of coverage. However, American Home Shield does cover pre-existing conditions, keeping them at the top of our list for appliance coverage.
Systems and appliances that break down due to normal wear and tear are almost always covered, but if the items appear to have issues due to the homeowner’s neglect or mishandling, the home warranty company has the right to deny that claim. Likewise, the owner’s lack of maintenance on a particular system or appliance can warrant claim denial.
Unfortunately, home warranty companies won’t cut you a break if pets climb on or mess with items in some way to cause damage. Vermin or insect infiltration damage also isn’t covered, so your best bet here is to take as many preventative measures as you can and keep pets and pests away from your systems and appliances.
If your claim ends up being denied, there are still several steps you can take to try and receive coverage. Once you have confirmed the validity of your claim, follow these steps to help you dispute the company’s resolution and issue an appeal:
Vehicle repair coverage can be expensive, making vehicle warranties not only beneficial but necessary. Like home warranties, auto warranties also have fine print that requires diligent attention and, if not attended to closely enough, can leave vehicle owners with denied claims.
Unfortunately, denied auto warranty claims can be a common occurrence, leaving many customers to fork out a hefty bill. However, just because your claim may be denied doesn’t mean all hope is lost when it pertains to receiving coverage. Extended warranty services count on people giving up easily, so re-submitting your claim can sometimes result in a claim approval.
Here are a few tips to ensure your auto warranty claim gets approved:
Q: Should I get a home warranty plan?
Q: What are the limits of home warranty coverage?
Q: What is an extended auto warranty?
Looking for more information on home warranty companies? Check out some of our other expert reviews to get all the details you need. Remember, each of these companies gives a free quote.
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