Home warranty guides

Before you buy: read the exclusions. Get the complete sample contract in writing. Find four things: the exclusions list, the per-item and aggregate caps, the definitions of "pre-existing condition" and "normal wear and tear," and the dispute resolution clause. That last one usually contains a binding arbitration provision, and under the Federal Arbitration Act such written provisions in contracts involving commerce are valid and enforceable except on grounds that would void any contract.

Filing a claim. Report promptly, describe the symptom rather than diagnosing the cause, and have your maintenance records ready. Expect the service call fee of $75 to $125 regardless of outcome. Keep a written log of every call, name, and date.

Fighting a denial. Ask for the denial in writing with the specific contract section cited. Respond in writing with your evidence — purchase records, dated maintenance invoices, photos, and the technician's own report if you can get it. Then escalate internally before you escalate externally.

Escalating outside the company. Regulation of these contracts varies enormously by state — some states regulate them through the insurance department, others through a real estate commission or consumer affairs agency. Find your state's regulator and file there. Many state attorney general offices maintain a complaint referral process that will point you at the right agency if you're not sure — California's, for example, publishes a complaint referral table for exactly this purpose.

How to choose

Get the full contract before payment, always

Not a summary, not a brochure. If it isn't available before you pay, that's your answer.

Find the arbitration clause and read it

The Federal Arbitration Act makes those provisions enforceable. Know what you're giving up.

Describe symptoms, not diagnoses, when you file

Your job is to report what's happening. Diagnosing on the phone can steer the claim into an exclusion.

Demand the clause behind any denial

In writing. A denial without a citation is the easiest kind to challenge.

Know your regulator before you need it

It differs by state. Your state attorney general's consumer complaint referral resources can point you to the right agency.