Home Warranty Contractors

What is a Home Warranty?

A home warranty provides protection to a new homeowner if appliances or other items, such as the furnace, water heater, or electrical system, need to be repaired. Having a home warranty in place makes the home buyer feel more confident about their purchase, since they won't be out of pocket for the cost of repairs.

Coverage is not very expensive; it usually runs between $250 and $400. The premium is paid in advance and provides protection for the following year. At that point, the home warranty can either be renewed or allowed to expire.

Home Warranty Coverage

In some cases, the seller of a home will buy home warranty coverage for the buyer. This extra incentive helps to make the home more attractive to the new owner. In other cases, the real estate agent will buy a home warranty for the home buyer as a gift to say thank you for doing business with them.

Denial of Payment for Home Warranty Coverage

Homeowners should be aware of what their home warranty covers and what is excluded from coverage. Generally speaking, items used outside the home, such as sprinklers, are not covered under a home warranty plan.

Repairs made to faucets in a home may not be covered under all plans, so be sure to ask whether this included. Large appliances, such as washers, dryer, and refrigerators may be excluded from the policy as well and may require a specific appliance insurance policy.

Your home warranty claim may be denied if the insurer determines that you have not maintained your home appropriately, the item was not installed properly or there is an unusual pattern of wear and tear.

Procedure for Contacting Home Warranty Contractors

When you need to get help from one of the contractors with which your homeowner's insurance company has a service agreement, you should contact the insurer to arrange for a service call. (You will probably have been provided with an 800 number for this purpose in your policy.)

The home warranty insurer will contact one of the contractors on its list and ask them to contact you to arrange a convenient time to come to your home to diagnose and repair the problem.

If the home warranty service contractor is unable to repair the appliance or fix the problem, then the insurer may be required to replace the item. (This will depend on the coverage of the policy.) You may be charged a nominal fee to have the home warranty contractor come out to your home. This fee should be less than $100.

If You Have a Problem

If you have a dispute with the contractor who has been sent to your home, you will need to discuss it with the insurer. Home warranty contractors are being paid by the insurance company, not you. They may have been given special instructions or have had to agree to certain policies or procedures of which you are not aware.

Rather than argue with the contractor who has come to your home, a better course of action would be to thank the person for telling you whatever piece of information they have shared and contact the insurance company directly.

Start by discussing your concerns with the customer service department. Note the name of the person you spoke with, the date and a summary of what was discussed.

Most of your dealings with home warranty contractors should run smoothly. However, if they don't, keep in mind that being polite and acting in a reasonable manner will help you get the situation resolved much quicker than if you lose your temper.