Home warranty scams Page Article Warning signs of home warranty scams:Scammers use phone calls or letters to offer/renew home warranties or threaten to cancel coverage if payment is not received immediately.Elderly or vulnerable populations are often targeted.Scammers may tie in mortgage lenders or use formal-looking documents to appear credible.Legitimate renewal notices should come from recognized companies and include detailed information about the policy and a reasonable payment date in the future.Avoiding home warranty scams:Research and read the contract carefully before signing with a home warranty company.Read online reviews and check with the Better Business Bureau and Consumer Reports home warranty reviews.Talk to neighbors, friends, and real estate agents for recommendations.Compare rates and types of coverage, including add-on coverage for specific home needs.The contract should include all the details of the policy, including conditions for claim rejection, appeals process, and cancellation policy.Ask questions until you are certain you understand the policy before signing.Keep a copy of the signed policy and payment record.Beware of unsolicited calls or emails from companies offering home warranties. Do not share personal or financial information with them.Check if the home warranty company is licensed and registered with the state regulatory agency. This can be done by contacting the state department of insurance or visiting their website.Make sure the home warranty covers the items or systems you need, and that there are no exclusions or limitations that would affect your coverage.Review the policy carefully to understand the terms and conditions, including any deductibles, service fees, or caps on the amount of coverage.Ask the company for a sample contract or brochure that explains the coverage in detail, and keep a copy for future reference.Find out how the company handles claims and repairs. Do they have a network of pre-screened contractors or do they allow you to choose your own? What is their response time for service requests?Check if the home warranty company has a 24/7 customer service hotline that you can contact in case of emergencies.Make sure you understand the cancellation policy and any fees or penalties that may apply if you terminate the contract early.Consider purchasing a home warranty as part of a comprehensive home protection plan that includes regular maintenance and inspections. This can help prevent costly repairs and extend the lifespan of your appliances and systems.Dealing with home warranty scams:Report the company to law enforcement agencies or the Better Business Bureau.If payment was made with a credit card, file a fraud report with the bank or credit union.Raise awareness in the community to prevent other victims from falling for the same scam.Finding Legitimate Home Warranty Companies:Reputable companies offer transparency, flexible plans, easy claims process, and positive reviews.Check for clearly listed terms, packages, costs, and details.Check online reviews for mostly positive reviews and how the company responds to negative reviews.Recommended companies include American Home Shield, AFC Home Club, Choice Home Warranty, Liberty Home Guard, and Cinch Home Services.Benefits of Legitimate Home Warranties:Legitimate home warranties offer peace of mind to homeowners by providing coverage for unexpected repairs or replacements.Homeowners can avoid unexpected expenses and debts by having a home warranty in place.Recommended home warranty companies offer a range of coverage options and are known for their customer satisfaction and reliability.