Home warranty plans cover the cost of repairing or replacing aging home systems and appliances if they break down through normal use. But how do home warranties work? In this guide, we’ll walk you through the typical home warranty claim process so you know what to expect when you need to make the call.
How does a home warranty work?
The home warranty claim process is simple. “If something breaks, the homeowner files a claim, pays the service fee, and the warranty company sends out a contract technician,” says Austin Glanzer, co-owner of 717 Home Buyers in Lancaster, Pennsylvania. “In many cases, the entire repair will be covered,” Glanser added, but coverage varies by warranty type.
Most home warranty companies follow a similar claims process, but some are slightly different. Some providers may send you an online form. Others may call you or let you use their mobile app. The biggest difference is response time and how quickly claims are approved.
Step 1: Contact your provider and submit your claim
If you notice a problem with your covered system or appliance, contact your home warranty provider immediately. Many providers require this claim to be made immediately or your claim may be denied due to improper maintenance or neglect.
Most home warranty companies have an online portal to file a claim, but you can also start a claim over the phone by calling their customer service line.
Step 2: Schedule a service visit
Once your claim is processed (usually within 24-72 hours), a service technician will be dispatched to your home. Christy Conti, broker and owner of Peacock Premier Properties in Inglewood, Fla., explains that most home warranty providers “can expect a local provider to come out and fix it within 24 to 48 hours. If it’s an emergency issue, like a broken water line, they’ll get someone out sooner.”
There are two routes to scheduling this visit. Some home warranty providers will automatically dispatch a technician from their network, or you may be able to select your own service specialist. In any case, at this point a diagnosis has been made and repairs can begin.
Step 3: Pay the service fee
Whenever you file a claim and have a service technician sent to your home, you pay the service fee. The amount you pay depends on your contract, but you can pay anywhere from $65 to over $125.
Note: Service call charges may be paid before or after the technician is dispatched. It depends on the home warranty provider.
Step 4: Get your application approved
Once the technician diagnoses the problem, they will work with your home warranty provider to determine if the problem is covered by your warranty. If covered, a service technician can order parts or begin repairs.
Step 5: Repair or replace your home system or appliance
If the repair is easy, a service technician will repair your system or appliance on the spot. However, if you need a new part or complete replacement, you may have to wait several days for repair.
If the repair cost is less than your coverage limit, you won’t have to pay more than the service call fee. If the repair or replacement exceeds your coverage limits, you must pay the difference after the service is completed. Additional charges may apply for some parts and labor. “Depending on the warranty, service calls typically include parts and labor,” Conti adds. However, this does not apply to all home warranties.
When to file a home warranty claim
If you notice a problem with a covered system or appliance, file a home warranty claim immediately. Delays in filing a claim can lead to further damages and, in some cases, the provider may deny compensation if the problem is deemed to be the result of negligence. The sooner you act, the more likely your application will be approved.
How quickly will my home warranty claim be approved?
Most home warranty companies aim to process claims quickly, often within 24 to 48 hours of submitting your request. For example, emergency issues, such as a complete HVAC failure during extreme weather, may receive priority service, but non-emergency requests, such as a built-in microwave that won’t start, may have a longer wait.
Once approved, a service technician will typically be dispatched within a few days, depending on availability and urgency. Schedules and repair schedules may vary depending on location and contractor availability.
5 Reasons Why Your Home Warranty Claim Is Denied
Unfortunately, it is not uncommon for claims to be denied. Here are the five most common reasons home warranty claims are denied.
- This item is not applicable: Systems, appliances, or components are not covered by warranty.
- Improper maintenance: The breakdown was caused by lack of routine care or carelessness, but there are no maintenance records to prove otherwise.
- existing symptoms: This issue existed before the warranty period began.
- Unauthorized repair: If you hire your own technicians without prior approval from your warranty provider.
- Damage other than normal wear and tear: Problems caused by misuse, accidents, or natural disasters are not covered. These are more likely to be covered by your home insurance policy.
FAQ
How do home warranty claims work?
If you file a home warranty claim, you will be charged a service call fee to have a technician come to your home. After diagnosing the problem, the service technician will contact your home warranty provider to obtain approval. If your claim is approved, we’ll cover the cost of repairing your home’s systems or appliances up to your coverage limits.
How often do I pay my home warranty fee?
Home warranty plans are paid monthly or annually. You will also pay a service fee each time you file a claim and have a technician sent to your home.
How long can I use my home after receiving a warranty?
Most home warranty companies have a 30-day waiting period before making a claim.
