Home Warranty Claims: What To Do if Your Claim Is Denied

A home warranty can be a lifesaver when a major appliance or home system breaks down. But if your claim gets denied, don’t panic. You still have options. This guide covers what home warranties include, common reasons for claim denials, and the steps you can take to challenge a denial.

What Does a Home Warranty Cover?

A home warranty is a service contract that covers the repair or replacement of major appliances and home systems from normal wear and tear. Unlike home insurance, which covers damage from unexpected events like fires or storms, a home warranty helps with everyday breakdowns.

Most standard home warranties cover:

• Major Appliances: Dishwashers, ovens, refrigerators, and similar household items.
• Major Systems: Plumbing, electrical, heating, and cooling systems.
• Limited Coverage: Workmanship and materials for certain parts of a new home.

Items That Require Additional Coverage

Some plans allow you to purchase extra coverage for:

• Pools and spas
• Roof leaks
• Electronics

What Is Not Covered Under a Home Warranty?

While home warranties cover many repairs, contracts typically contain exclusions.

• Structural Components: Walls, doors, windows, roofing, and foundations.
• Cosmetic Damage: Scratches, dents, chipped paint, and general aesthetic issues.
• Pre-Existing Conditions: Problems that existed before you purchased the warranty.
• Maintenance Issues: Failures caused by neglect or improper maintenance.
• Acts of God and Natural Disasters: Damage from floods, earthquakes, hurricanes, fires, and vandalism.
• Specific Appliances or Systems: Some plans exclude window A/C units, septic tanks, well pumps, and sump pumps.
• Commercial-Grade Appliances: Restaurant-style kitchen appliances and the like.
• Duplicate Appliances: If you have two refrigerators or an extra dishwasher, you can expect to have coverage for only one of them.
• Misuse or Improper Installation: Make sure to install appliances properly and use them for their intended purposes.

Why Do Home Warranty Companies Deny Claims?

Home warranty companies deny claims for several reasons, including:

• Policy Exclusions: Check the list of exclusions in your contract.
• Lack of Maintenance: Failure to complete required maintenance can cause a denial.
• Improper Installation: Follow manufacturer suggestions when installing appliances.
• Pre-Existing Damage: Warranties typically don’t cover damage that occurred before you purchased the policy.
• Unauthorized Repairs: Using an unapproved technician may void the claim.
• Inaccessibility: If it’s too difficult to reach an area and complete the repairs, the company may deny the claim.

How to Get a Home Warranty Claim Approved

Before filing a claim, review your contract. Many home warranty companies have specific rules on how claims must be submitted and which repair companies can be used.

Steps to Improve Claim Approval

• Check Your Policy: Confirm that the issue is covered before submitting a claim.
• Contact Your Provider: Report the problem as soon as it occurs.
• Pay the Service Call Fee: Most warranties require a service fee for a technician visit.
• Allow Access to a Technician: Ensure the assigned service provider can inspect the issue.
• Maintain Records: Keep receipts, maintenance logs, and repair records.
• Address Concerns Proactively: If the technician questions the issue, be ready to explain why it should be covered.

What to Do If a Home Warranty Claim Is Denied

If you’ve followed the above advice and your home warranty company denies your claim, you can use these steps to appeal:

• Review Your Policy: Check your contract to understand why the claim was denied.
• Contact the Company: Ask for an explanation and request a reconsideration.
• Initiate an Appeal: Many providers allow appeals if additional evidence can be provided.
• Gather Documentation: Collect repair estimates, photos, service logs, and any communications with the company.
• File a Complaint: You can report unsuccessful appeals to your state’s consumer protection agency if you believe the claim should be approved based on your home warranty contract.

Should I Buy a Home Warranty?

A good home warranty is absolutely worth investing in, especially if:

• Your Home Is Older: Aging systems and appliances are more likely to need repairs.
• You Want to Budget for Repairs: A warranty helps manage unexpected expenses.
• You Plan to Replace Multiple Items: A warranty can reduce the cost of replacing major appliances or systems.

Additional Home Warranty Factors to Consider

• Annual Costs and Service Fees: Determine whether the yearly premium and per-visit fees fit your budget.
• Coverage Limitations: Ensure the policy provides the protection you need.
• Exclusions and Pre-Existing Conditions: Read the fine print carefully to avoid surprises.

A denied home warranty claim feels frustrating, but it doesn’t have to be the end of the road. Understanding your policy, keeping up with home system maintenance, and knowing how to dispute a claim can increase your chances of approval. If an appeal isn’t successful, legal and consumer protection options may be available. Before purchasing a home warranty, always read the fine print to make sure it’s the right fit for your needs.