Home Warranty Claim Denied? Here’s What to Do

When major home systems and appliances break down or need maintenance due to normal wear and tear, the repair or replacement costs can be staggering. Home warranty coverage provides priceless peace of mind by alleviating potential financial burdens and making sure your systems are up and running quickly.

Experiencing a denied home warranty claim is frustrating and leaves homeowners confused. In this article I’ll review the most common reasons warranty claims are denied and what steps homeowners can take to increase their chances of claim approval.

Top Reasons Why Your Home Warranty Claim Might Be Denied

1. The appliance or system isn’t covered 

This might seem obvious, but many homeowners overlook the exclusions of their protection plan and expect all items to be covered. Carefully read the fine print of your residential service contract before signing on the dotted line. Fortunately, most home warranty companies have sample contracts available on their websites under their frequently asked questions (faqs) or labeled in the website footer as “Terms and Conditions.”

2. The item was improperly installed or faces safety code violations 

Improper installation of a system or appliance, which is a common occurrence, will cause it to work improperly. Unfortunately, improper installation cases typically result in a claim denial. First American Home Warranty stands out as one of the few home warranty companies that covers improper installation, modification, or maintenance of items.

Claim denials may also happen if systems or appliances aren’t up to code. Consider getting a home inspection before warranty coverage kicks in to make sure your items don’t have any code violations.

3. The affected parts or components aren’t covered

It’s possible your home warranty company doesn’t cover all of the parts in your system or appliance. For instance, your provider might exclude coverage for non-mechanical parts such as knobs or handles on washers or dryers, or the doors of dishwashers.

4. The broken system or appliance has a pre-existing condition

Pre-existing conditions are defects or mechanical failures that may not have been detected by a simple visual exam or mechanical test. These issues pre-date the purchase of your warranty coverage. Most home warranty companies only cover items purchased after the start of coverage. I recommend American Home Shield for warranty coverage as it does cover pre-existing conditions.

5. The item did not receive routine maintenance

Systems and appliances experiencing breakdowns from normal wear and tear are typically covered. If a major system or appliance appears to have issues due to the homeowner’s neglect or mishandling, the home warranty company has the right to deny that claim. Likewise, the owner’s lack of maintenance on a particular system or appliance can warrant a claim denial.

6. The coverage cap has been exceeded

Home warranty plans have caps that limit the amount they will pay on major systems and appliances in your home. If your coverage limit has been reached during the current term, your claim may be denied. 

7. The damage is caused by pets or insects 

Regrettably, home warranty companies don’t provide leniency if pets cause damage by climbing on or interfering with items. Damage caused by vermin or insect also infiltration isn’t covered. It’s crucial to take preventative measures and keep pets and pests away from your systems and appliances.

What To Do if Your Home Warranty Claim Is Denied

If your home warranty claim is denied, you can still take steps to pursue coverage. Once you have confirmed the validity of your claim, follow these steps to help dispute the company’s decision:

1. Contact your home warranty company with your claim information and contract number to make an appeal. 
2. Communicate your appeal clearly and in a calm manner. Keep a record of representatives who helped you, the dates they spoke to you, and any information they provided. This process may seem tedious, but it could be useful to you later.
3. If a service technician or contractor was sent to evaluate the claim, try speaking with them directly to obtain their inspection report. It may be necessary to get a second opinion from another repair person or local contractor for comparison.
4. Follow your home warranty company’s appeal process meticulously, making sure you provide proper documentation and keep accurate records. If the company is unresponsive, you can file a customer complaint with the Better Business Bureau (BBB).
5. If your efforts are still unsuccessful, file a complaint with your local small claims court or contact your state’s Attorney General’s office to discuss fraudulent home warranty companies.

What To Do if Your Auto Claim Is Denied

Along with major home appliances and systems, vehicle repairs can also be expensive. Investing in a vehicle warranty can be beneficial. Like home warranties, auto warranties have fine print and exclusions that require diligent attention. If not attended to closely enough, this can leave vehicle owners with denied claims.

Unfortunately, denied auto warranty claims force many customers to pay a hefty bill. The denial of your claim doesn’t mean you have no recourse. Extended auto warranty services rely on owners giving up easily, so resubmitting your claim can occasionally lead to approval.

Here are a few tips to increase the chances of your auto warranty claims approval:

• Read your contract — Just like with your home warranty coverage, it’s important to thoroughly read through your auto warranty contract to see what’s covered and what isn’t. Know the details of your contract, including the claims process, contract cancellation procedure, and refund method from your warranty company, to make informed decisions.
• Go over submitted claim paperwork — Review the claim paperwork submitted to the repair shop. It’s possible they didn’t provide adequate supporting documentation or weren’t specific in reporting mechanical issues.
• Re-submit your claim with a letter — When re-submitting your claim, submit it with a letter clarifying why you believe your claim was incorrectly denied. Clearly state the failed component and why it’s covered, demanding full coverage without compromise. Copy all documentation for your records before you send it out. 
• Follow up daily — Once you’ve sent your letter, persistently follow up daily until they respond to your claim. Document each interaction with customer service representatives, demonstrating your commitment to resolving the issue promptly. Being persistent and applying pressure can lead to faster resolutions. This shows the urgency and importance of your claim, pushing the company to prioritize your case and prevent further inconvenience or escalation.

It’s frustrating to have any warranty claim denied. However, there are actionable steps you can take with the warranty provider to challenge the decision and secure the warranty coverage you deserve. Keep all necessary documentation for your records. If all else fails, don’t hesitate to escalate the matter further by filing a complaint with the Better Business Bureau (BBB) and regulatory bodies or pursuing legal action. Remember, persistence and thoroughness are key when disputing a denied warranty claim, and with perseverance, you may still achieve a favorable outcome.

Looking for more information on home warranty companies? Below are expert reviews providing all the details you need. Keep in mind, each of these companies offers a free quote.

• Choice Home Warranty review
• American Home Shield review
• Select Home Warranty review
• Amazon Home Warranty review
• First American Home Warranty review
• Liberty Home Guard review