How a Home Warranty Claim Works

A home warranty can take some of the stress out of a broken appliance or system, but only if you know how to use it. The claim process is usually simple, though a few details can affect how fast it goes and what you pay. Here's how a typical home warranty claim works from start to finish.

Step 1: Confirm the item is covered

Before you call, check your contract. Home warranties usually come in tiers:

• Systems plans that cover things like heating, air conditioning, plumbing and electrical
• Appliance plans that cover items like the refrigerator, oven, dishwasher, washer and dryer
• Combination plans that include both
• Optional add-ons for things like pools, spas, well pumps or a second refrigerator

Also check for coverage limits, exclusions and any waiting period at the start of the contract. Our home warranty coverage page gives an overview of what plans commonly include.

Step 2: File the claim promptly

Most providers let you file online or by phone. Many contracts ask you to report a problem soon after you notice it. Waiting can make damage worse and may complicate the claim.

Be ready to share:

• Your contract or account number
• The item that isn't working
• A description of the problem, including when it started
• The make, model and age of the item, if you know them
• Your availability for a service visit

Step 3: Pay the service fee

Most home warranties charge a service call fee, sometimes called a trade call fee, each time a technician comes out. You usually pay it when you file the claim or when the technician arrives. The amount is set in your contract.

In many contracts, one service fee covers one trade for one issue. If the problem requires a different trade, such as a plumber and an electrician, you may pay a second fee.

Step 4: The technician visit

The provider assigns a contractor from its network, who contacts you to schedule a visit. In emergencies, such as no heat in freezing weather or a major water leak, many providers try to prioritize service, but timing varies.

During the visit, the technician will:

1. Diagnose the problem
2. Determine the cause of the failure
3. Report findings to the warranty company
4. Explain whether the repair appears to be covered

Be present for the visit if you can, and ask questions.

Step 5: Repair, replacement or denial

After the diagnosis, the provider decides how to handle the claim:

• Repair. The most common outcome. The technician fixes the item, sometimes after ordering parts.
• Replacement. If the item can't be repaired at a reasonable cost, the provider may replace it, usually with a unit of similar features and capacity, not necessarily the same brand. Some providers offer a cash payment instead.
• Denial. A claim may be denied if the item isn't covered, the problem existed before the contract started, the failure came from a lack of maintenance, or it exceeds coverage limits.

Ask for the reason in writing if your claim is denied. Our claims page has more tips on what to expect.

Costs you may still pay

Even with a covered claim, you might pay for:

• The service call fee
• Amounts above coverage limits
• Code upgrades or permits, if the contract excludes them
• Modifications needed to fit a new unit, like changes to ductwork or cabinets
• Non-covered parts

Read these sections of your contract before you need them.

Tips for a smoother claim

• Keep maintenance records like HVAC tune-ups and water heater flushes.
• Take photos of the problem and the model plate.
• Write down dates and names of everyone you speak with.
• Don't hire your own contractor first unless the contract allows it. Many plans won't reimburse unauthorized repairs.
• Follow up if you don't hear back within the time frame you were given.

How Warranty Wizards can help

We help you compare home warranty plans from third-party providers and explain what each one covers before you buy, including service fees and limits. To see your options, get a free quote.