How to Keep Your Home Warranty Valid & Avoid Claim Denials

It's important to understand what can void your home warranty so your appliances and systems stay protected. Home warranties cover repairs and replacements from normal wear and tear, but certain actions or inactions by homeowners can lead to denied claims or even a voided warranty. This article will list common mistakes that can void a home warranty or lead to denied claims.

How a Home Warranty Works

A home warranty is a service contract that offers lower costs for fixing or replacing home systems and appliances. Coverage can vary by provider, but it usually includes plumbing, electrical systems, heating, and major appliances.

How the Claim Process Works:

1. If a covered item breaks, you contact your warranty provider instead of hiring a repair technician on your own.
2. The provider dispatches an approved contractor to diagnose and repair the issue.
3. You pay a service fee, and the home warranty covers the remaining repair costs unless your claim is denied or your warranty is voided.

Each home warranty provider has specific terms and conditions, so it's important to read your contract carefully to understand what is and isn’t covered.

What is Covered by a Home Warranty?

Coverage varies by provider and plan, but most standard home warranties cover:

• Air conditioning and heating systems
• Plumbing and electrical systems
• Water heaters
• Ovens, stoves, and dishwashers
• Ductwork
• Garbage disposals
• Ceiling fans

Higher-tier plans may also cover refrigerators, washers/dryers, pools, and even roof leaks.

Always check your specific contract for coverage details and exclusions.

Voided Warranty vs. Denied Claim: What’s the Difference?

It’s important to know the difference between a voided home warranty and a denied claim:

• Voided Warranty: This means your entire warranty contract is canceled. No future claims will be approved, and you’ll be responsible for all repair costs.
• Denied Claim: This means a specific repair request was rejected, but your home warranty is still active. You may still receive coverage for other repairs in the future.

What Can Void Your Home Warranty?

While a fully voided warranty is uncommon, certain actions can lead to complete cancellation of your coverage.

Major Reasons a Home Warranty Can Be Voided:

• Non-payment of premiums:  Failing to pay your home warranty bill will result in immediate cancellation of your contract.
• Fraud or misrepresentation: Lying about pre-existing conditions, altering service records, or providing false information can void your warranty.
• Unacceptable homeowner behavior: Threatening or verbally abusing customer service representatives or contractors may lead to cancellation.

Common Reasons for Denied Home Warranty Claims

A denied claim is different from a voided warranty, but repeated claim denials can signal that you’re not maintaining your home properly, which can ultimately void your coverage.

Unauthorized Repairs or DIY Fixes

Performing repairs without provider approval is one of the easiest ways to cause denied home warranty claims. This includes:

• Hiring an unapproved contractor
• Using an unlicensed repair technician
• Attempting DIY fixes

Home warranty providers require approved contractors to ensure repairs meet industry standards. Using unauthorized service providers can invalidate future claims, even if the work was done correctly.

Unauthorized or Improper Installation

Many home warranties only cover properly installed systems and appliances. If a technician determines that an issue stems from incorrect installation, your claim may be denied. Warranty providers often require that a licensed professional performs the installation to meet safety standards and ensure everything works properly.

Lack of Regular Maintenance

Every warranty provider expects you to make repairs right away. The meaning of "right away" can differ based on your contract, so check the terms. If you have a leaky roof and ignore it, don’t be surprised if your claim for a damaged ceiling fan is denied. Ignoring small problems can lead to bigger, more expensive issues.

For example, a slow-draining sink may seem like a minor inconvenience. However, if left unaddressed, it could lead to severe plumbing damage, rust, and leaks. In such cases, your warranty provider may deny coverage, arguing that the damage resulted from negligence rather than normal wear and tear.

Unusual Wear and Tear

Using appliances or systems beyond their intended capacity or inappropriately can result in unusual wear and tear, which is typically not covered by warranties. For example, overloading a washing machine or using a residential appliance for commercial purposes can lead to denied claims.

Lack of Documentation

Many warranty providers require proof of purchase, maintenance records, and service documentation before approving a claim. Losing this documentation can make it difficult to prove eligibility for coverage.

A good practice is to scan and store copies of all warranty documents digitally, ensuring they are accessible when needed.

Not Following Building Codes

Do you keep your home up to code? Many homeowners do not, without even realizing it. Local building codes often change every year, but homeowners usually only pay attention to these codes when they want to renovate. A city inspector will check your property and only give a permit if it meets the building code.

If you do not stay up to code, your claims may be denied or your warranty could become void. Building codes may seem strict, but they exist to ensure your safety. Most warranty violations relate to safety issues, especially with plumbing and electricity.

Final Thoughts

To maintain your home warranty and prevent claim issues:

1. Read your contract thoroughly to understand coverage limitations.
2. Use only approved contractors for repairs and installations.
3. Perform regular maintenance and keep detailed records.
4. Report issues promptly before they worsen.
5. Follow all manufacturer guidelines for appliance use.
6. Ensure your home complies with local building codes.

A home warranty can be a valuable investment, but it’s important to follow all contractual obligations to maintain coverage. If you don’t follow the terms of your agreement, you risk having claims denied or your warranty completely voided.

By following these steps, you can ensure your home warranty remains valid and continues to provide financial protection for your most important home systems and appliances.