How Home Warranty Companies May Mislead Consumers

Home warranty companies offer plans that claim to cover repairs or replacements of major home systems and appliances. While some provide genuine service, many customers report misleading practices and denial of claims. Here's what you should watch out for:

Common Complaints and Tactics

• Denying Claims Based on Fine Print: Companies often use vague contract terms to deny coverage, citing “pre-existing conditions” or “lack of maintenance.”
• Low-Quality Contractors: Some send underqualified or local lowest-bid contractors, leading to poor repairs and additional problems.
• Delaying Service: Long wait times for technician visits can leave homeowners without working appliances for days or weeks.
• Excessive Service Fees: Customers may be surprised with high fees for every visit, often approaching the cost of the repair itself.
• Pushing Sales Over Support: Aggressive marketing and upselling often take precedence over actually fulfilling claims.
• Hard-to-Cancel Contracts: Some companies make it difficult to cancel, including hidden fees or no clear process for ending service.

How to Protect Yourself

• Read the entire contract carefully, including exclusions and limitations.
• Look for third-party reviews (not just testimonials on the company’s site).
• Check Better Business Bureau (BBB) ratings and complaint history.
• Compare multiple providers and ask direct questions about what’s covered.
• Avoid companies that pressure you into signing immediately.