A home warranty is an agreement designed to provide coverage for your home systems and appliances when they malfunction due to normal wear and tear. It’s a popular choice among homeowners as an addition to homeowners insurance, which typically only protects the physical structure of the home.
Before you opt for a home warranty, you should be wary of how they work. A suitable home warranty can be more challenging to find like choosing a road bike. However, you need to learn how they operate before you sign the contract. Here we highlight some cases where a company may deny your home warranty claim.
1 – No Coverage
The first situation in which a company may deny your claim is where the appliance or system component is not included in the home warranty.
Only some of the appliances in your home will be covered by the home warranty plan. Therefore, when purchasing a home warranty plan, you should go through the fine print to spot all the appliance exclusions. To find out more about the home warranty, read here https://www.cinchhomeservices.com/faq-library/-/faq/home-warranty-North-Carolina.
2 – Inadequate Maintenance
When you have a home appliance warranty, you are still responsible for adequately maintaining the systems and home appliances.
If you file a claim that arises from improper appliance maintenance, lack of regular servicing, and neglect, the warranty company may deny your claim. Therefore, to avoid this, you should follow all the maintenance guidelines the warranty contract has highlighted.
3 – Pre-Existing Conditions
Most home warranties, if not all, do not cover pre-existing appliance conditions. These are the issues that existed in your home appliances before the start date of the home warranty.
The home warranty company will deny you the claim if the problem your appliance experience existed before purchasing start of contract. If your appliance has any pre-existing conditions, consider fine-tuning it before you can sign your home warranty contract.
4 – Improper Installation and Code Violations
If your home appliance has issues with code violations and improper system installation, no company will accept your claims. Most home warranties exclude coverage on issues resulting from non-compliance with installation and building codes. Therefore, you must observe all building codes when installing home appliances and systems.
5 – Delayed Reporting of Issues
Most home warranty companies require that you report all the issues in the appliances and system on time. The company may deny your claim if you don’t say the problem on your home appliance on time. Always notify the home warranty provider if there are any issues with the appliance.
6 – Insufficient Documentation
A home warranty provider will require proper documentation when filing home warranty claims. Some of the documents include receipts, invoices, and maintenance records.
If you present incomplete and inaccurate documentation that does not support the claim, it can sometimes lead to a denial. You want to ensure you provide all the necessary documentation per the warranty company’s requirements.
Final Thoughts
When filing for a home warranty claim, you should ensure you’ve gone through the requirements. Companies have different claim requirements that you must meet to get the compensation on time. Report the issues on time to avoid denial by your warranty company.
