Home warranty scams

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.

• 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.

• 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.

• 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.

• 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.