Home Warranty Blog and Resources

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: If a covered item breaks, you contact your warranty provider instead of hiring a repair technician on your own. The provider dispatches an approved contractor to diagnose and repair the issue. 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. Find the Best Home Warranty Compare top-rated home warranty providers to find the right one for you. See Companies Final Thoughts To maintain your home warranty and prevent claim issues: Read your contract thoroughly to understand coverage limitations. Use only approved contractors for repairs and installations. Perform regular maintenance and keep detailed records. Report issues promptly before they worsen. Follow all manufacturer guidelines for appliance use. 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. 

Every day, millions of homeowners and homebuyers consider whether a home warranty is a worthwhile investment. With home repairs often carrying hefty price tags, many wonder if a home warranty will actually save them money or if it's an unnecessary expense. While there’s no cut-and-dry answer to this question, we’ll help you understand how a home warranty could save you money. Understanding Home Warranties A home warranty is a service contract that helps homeowners pay for repairs or replacements of important home systems and appliances that wear out over time. This warranty can help give you peace of mind, knowing that if your heating system, air conditioner, or kitchen appliance breaks down, you have support to handle the costs. But keep in mind that a home warranty is not the same as homeowners insurance. Homeowners insurance protects you from damages caused by unexpected events like fires, storms, or natural disasters. Commonly covered items include: HVAC systems (heating, ventilation, and air conditioning) Plumbing and electrical systems Kitchen appliances (refrigerators, ovens, dishwashers, etc.) Water heaters Coverage varies by provider and plan, so make sure you carefully review all details before purchasing a policy. Potential Cost Savings A home warranty isn't guaranteed to save you money, but it may. Here are two ways purchasing a home warranty policy could protect your home and your wallet: 1. Protection Against Major Repair Costs Repairs and replacements for major home systems can be expensive. A home warranty can help significantly reduce these out-of-pocket costs. According to industry estimates: A new HVAC system installation can cost between $5,000 and $20,000. A water heater replacement can range from $800 to $3,500. Refrigerator repairs can cost anywhere from $200 to $1,500. If a covered system or appliance breaks down, a home warranty could save a homeowner thousands of dollars in repair or replacement costs. However, home warranty plans require a service fee (typically $75 to $125 per claim) and a premium, and they may have coverage limits on certain items. 2. Budgeting and Predictability If you don't have enough savings for unexpected home repairs, a home warranty can help you manage costs. With a warranty, you pay a set annual or monthly fee instead of worrying about things like a surprise $3,000 furnace replacement. Home warranties usually cost between $300 and $800 per year, depending on the coverage you choose. Basic plans often cover essential systems like heating and plumbing, while more comprehensive plans may also include appliances (or some providers offer appliance-only plans!). This system lets you budget for maintenance costs, reducing stress when major repairs are needed. Limitations and Hidden Costs While home warranties offer some level of financial protection, they also come with potential downsides that could impact cost savings. 1. Coverage Exclusions and Fine Print One of the biggest complaints from consumers is that certain repairs are not covered. Many policies exclude pre-existing conditions, improper maintenance, and accidental damage. Some plans also have caps on repair costs, meaning if a system exceeds a certain dollar amount, the homeowner must cover the difference. 2. Service Call Fees and Deductibles Most home warranty claims require homeowners to pay a service call fee each time a technician is dispatched. If multiple appliances break in a short period, these fees can add up quickly. 3. Limited Contractor Choice Home warranty companies usually work with a set group of contractors. This limits homeowners' control over who does the repairs, and some homeowners are not happy with the quality of service or the time it takes to get repairs done. When a Home Warranty is Worth It A home warranty may be a good investment for: Older Homes: If your home has aging appliances and systems, the likelihood of needing costly repairs is higher. Limited Emergency Fund: If you don’t have savings set aside for major repairs, a home warranty can provide peace of mind. Buying a Home with Unknown History: If you’re purchasing a pre-owned home and are unsure of the maintenance history, a home warranty may help cover unforeseen repairs. When a Home Warranty May Not Be Necessary Not all homeowners benefit from a home warranty. It may not be a good fit if: Your home and appliances are new: Most new appliances and systems come with manufacturer warranties that provide free repairs or replacements for the first few years. You have a solid emergency fund: If you have money set aside for home repairs, a home warranty may not be necessary. You prefer hiring your own contractors: If you want complete control over who services your home, a warranty may limit your options. Find the Perfect Home Warranty See the top-rated home warranty companies and read real customer reviews. Compare Companies Bottom Line: Will a Home Warranty Save You Money? Again, it may. We can't say for certain that it will because everyone's situation is different. If you buy a home warranty and never need to use it because your appliances or home systems never fail, then you're not really saving money. But, even in this case, a home warranty can help provide peace of mind, just in case, and that still may be worth the cost of a monthly or yearly premium. Some of the key factors in determining whether a home warranty will save you money include: The age and condition of your home’s appliances and systems The cost of the warranty compared to potential repair expenses Your ability to handle unexpected repair costs out of pocket To save money, homeowners should compare different home warranty providers and review the details of each policy. It's also important to have realistic expectations about what is covered. Checking reviews of top-rated home warranty companies (like those on BestCompany!) can help you choose a policy that meets your needs. Before buying a home warranty, assess the risks in your home and see if the policy fits your budget. If you make the right choice, a home warranty can provide useful protection and may help you save money in the long run.