For new homeowners with recent warranty purchases or those exploring home warranty options, the duration, activation process, and cancellation deadlines of a home warranty can seem confusing. Gaining clarity on the timelines and terms of home warranty policies will help you use your warranty effectively and maximize its value.
In this article I’m going to provide an overview of exactly how a home warranty works, focusing particularly on the timelines and deadlines. These include such important issues as the time it takes for a home warranty plan to become effective — how many days you have to cancel the policy with a full or partial refund — how much time you have to submit a claim — and more.
Knowing all the timelines and deadlines for your home warranty provider will save you time and money and help you get the most out of your home warranty.
Timelines and Deadlines in Home Warranty Contracts
| Information Type | Description |
| Coverage becomes effective | 30 days |
| Cancellation with a refund available | 30 days |
| Emergency service available | 79% companies |
| Time to cancel automatic renewal | 30 days |
| Max time to submit claim | 1 day |
| Repair timeframe | 2 days |
| Repair timeframe weekends and holidays | 32 days |
| 24/7 | 79% companies |
| Business hours for service calls | 15% companies |
| Free reservice period (parts) | 60 days |
| Free reservice period (labor) | 30 days |
How Long Does it Take for a Home Warranty To Become Effective?
One of the most important things you need to know about your home warranty is how long it takes to activate it. There is typically a waiting period between when you sign the policy and when it becomes effective.
This makes sure that any systems or appliances that have stopped working did so due to normal wear and tear or old age. The waiting period will depend on the company. Each home warranty company will have its specific waiting period. Regardless of whether you have a new home or an older home, pre-existing conditions will not be covered in the plan.
Usually, the waiting period ranges anywhere from 1 to 30 days. A total of 54% of companies, including industry leaders 2-10 Home Buyers Warranty and AHW, have a waiting period of 30 days, making this the most common length of time.
This means that if, for example, your refrigerator breaks down just 2 weeks after the policy purchase, you will have to repair it on your own. Just 17% of home warranty companies have their coverage begin sooner. Only 4% of the companies will begin service in 15 days; another 4% do so in 10 days. Finally, there are a few home warranty companies with no waiting period — coverage begins after only 1 day. Not all customers will be so lucky, as only 9% of home warranty companies in the industry have this generous policy.
For companies with no waiting period, you must check to see if there are additional repair costs or a higher service call fee during this initial home warranty coverage period.
Read: Affordable plans for septic system
If you’re looking for a trusted, industry-leading home warranty company, I recommend American Home Shield. American Home Shield is an industry leader in providing home warranties, and right now you can take advantage of their current promotions that will save you 15% off your plan.
How Much Time Do You Have To Cancel a Home Warranty?
It is crucial to know how much time you have to cancel a home warranty. Pay extra attention to the cancellation policy to know whether your home warranty company will refund your money if you choose to cancel.
If you decide to cancel your contract, you have a certain amount of time to do so and still get a refund. More than half of the companies give their clients 30 days for making such a decision. Only one company offers 60 days to end the agreement, while some of them are less generous — you might only have 20 days, 10 days, or even three days to cancel.
In short, if you ever change your mind or are dissatisfied with the services, you can cancel your home warranty, but you cannot always expect a full refund. If you cancel before the deadline and your company never provided any services, you can get your money back. After the deadline, a cancellation fee will be charged.
Most homeowners do not cancel their homeowner’s warranty plan within the first year. They give it some time to make sure that the service provider does good work and that the covered items and covered appliances are fixed in a timely matter. Many new homeowners seek coverage under the manufacturer’s warranty for their home appliances. However, the heating system, electrical systems, and HVAC may not have these same warranties.
How Long Does It Take To Get an Emergency Service With a Home Warranty?
Do you know how long it takes to get an emergency service with your home warranty company? If you have a system or appliance breakdown and need service quickly, most home warranty companies will make their best efforts to have a contractor out to your home ASAP. To get help, simply contact customer service and report the problem. Normally, customer support works 24/7/365.
Almost 80% of warranties include the option of emergency repairs. Only 7.5% of the companies do not offer such a service, and 1.5% will provide emergency services only for an extra fee.
For example, a company like American Home Shield offers homeowners the peace of mind that a service technician will be at their home within 48 hours of submitting the request. Considering you can submit the request any time of day or night, this is a fairly quick service. For an additional service fee, you can speed up this process. It really depends on the system that you are having difficulty with.
Waiting a day or two may suffice for smaller items like a washer or garage door opener. However, issues with a septic system or water heater typically require immediate attention.
How Much Time Do You Have To Submit a Claim With Your Home Warranty?
Another time frame that a home warranty contract describes is the maximum time allotted to submit a claim if a system or appliance breaks down. About two-fifths of the home warranty providers expect their clients to notify them of a home system or appliance breakdown within one day. Only 4.5% will give you 3 days, and Select Home Warranty is among them. Only 1.5% will give you 14 days, and another 1.5% will give you 30 days to submit a claim.
Ignoring repair issues may lead to more significant structural defects and other problems. It’s essential to promptly inform the home warranty company of any issues as they arise, rather than delaying repairs.
How Long Does it Take to Get a Repair?
One of the questions that every homeowner asks a home warranty representative is how long it takes to get their issue repaired. If your air conditioning decides to stop working in the middle of the summer, you will want a repair person to head out to your home quickly. How about when you have guests visiting your home, and the washer starts leaking, you will want a repair done promptly.
The longer you have to wait for repairs, the more inconvenient it is. Once a non-emergency service request is submitted, 40% of companies will send authorized contractors within two business days, and 7.5% of companies will send someone within one day. But beware: on the other side of the spectrum, some companies (1.5% to be exact) will only send a repair provider within 30 days.
If a breakdown occurs over the weekend or on a holiday, the waiting period usually increases. A total of 9% of companies promise to repair malfunctioning appliances or broken systems within 14 days and 6% within three days. Only 4.5% of them are ready to help you within 24 hours. A small percentage — 1.5% will only guarantee repairs within 30 days.
The corresponding graph indicates that many home warranty companies, about 80%, don’t provide information regarding weekends and holidays. This can be explained by the fact that many companies work every day without differentiating between weekdays and weekends. It is likely many of these companies simply use the same time frame as during a weekday, but you should clarify this point directly with a company representative before signing the policy.
This becomes a bit of a fine-print situation because major appliances like an air conditioner may require specific parts for repair. If the repair person cannot obtain these parts, the waiting time for a repair is extended.
How Long Is the Reservice Period?
In case one of your home systems or appliances was recently fixed, but something is wrong with it again, many home warranty companies offer a free reservice period. The free reservice period is the length of time after the original repair in which the home warranty company guarantees reservice if that original repair fails.
If you experience an issue regarding your completed repair within this window of time, you won’t have to pay a second time – a contractor will come out and make the repair again. That way, you won’t have to pay twice for the same repair.
You will want to make sure that there are no additional coverage exclusions as part of this clause. Do you need to pay the service fee twice? Is there an extended warranty option that comes into play? Will you be subject to a deductible again? Understanding all of these factors before a garbage disposal repair escalates into a mortgage-sized payment is crucial.
More than 48% of companies provide a 30-day workmanship guarantee on repairs made. Another 9% of home warranty companies provide a 60-day guarantee, 5.5% give 90 days, 4.5% give 180 days, and another 4.5% as much as 365 days.
This guarantee policy is very similar to the previous section about the free reservice period, but the difference is that this is for parts rather than labor. Sometimes the free reservice period for parts and labor may differ. For example, there might be a company with a 30-day free reservice policy for labor but a 90-day free reservice guarantee for parts.
If an appliance is fixed, but then a part breaks again after 60 days, then the repairman’s labor will cost money (since 60 days is outside of the 30-day labor guarantee), but the part will be provided for free (since 60 days is still inside the 90-day parts guarantee).
Almost 30% of the companies provide a 30 days-guarantee for parts. A total of 10% of the home warranty providers give 60 days, 23.5% give 90 days, about 5% give 180 days, and 7.5% give the longest period, 365 days.
How Long Does a Home Warranty Last?
Most home warranty contracts are one year in length and renewable every year. Usually, a company renews a home warranty plan at the end of the term automatically. If your home warranty provider doesn’t offer an automatic policy renewal, pay attention to your warranty’s expiration date and renew it on time if you want to continue service. If you want to cancel the automatic policy renewal, it’s important to cancel within the specified period before the contract’s expiration. Similar to homeowners insurance, you won’t want to allow a gap in service if you can help it.
About 39% of companies allow you to cancel the automatic renewal within 30 days before the end of the contract, and 4.5% let you cancel within 60 days. But be careful: one company only gives three days, and another company gives just one day. On rare occasions, companies like Whirlpool Warranty limit the coverage on certain items to a maximum of 10 years.
Final Words
Now that you understand the duration and terms of a home warranty plan, remember the most important rule: thoroughly review the contract before signing. By familiarizing yourself with the coverage details, timelines, and deadlines, you can feel secure knowing your home is adequately protected and avoid any unwelcome surprises down the road.
Frequently Asked Questions
How many home warranty service requests can you make?
Most home warranty companies do not have a limit to the number of service requests you can make during your contract. Homeowners need to remember though that all home warranty companies have limits on their coverage.
Do home warranties save you money?
Yes, a home warranty offers budget-friendly repairs for covered items. Policyholders save money in the long run and have peace of mind that they are shielded against hefty repair costs.
Using your home warranty at least once per year guarantees savings, with more claims resulting in greater financial benefits.
When does a home warranty start?
There is typically a waiting period between when you sign the policy and when it becomes effective. Usually, the waiting period ranges anywhere from 1 to 30 days.
