How to Cancel a Home Warranty

Maybe you're selling your house, replacing old appliances with new ones under manufacturer warranty, or simply deciding the plan isn't worth it. Whatever the reason, canceling a home warranty is usually straightforward if you know the steps. Here's what to expect.

Read your contract first

Your contract's cancellation section is the most important thing to read. It typically explains:

• How to request cancellation, by phone, email, mail or online
• Whether there's a free-look period for a full refund
• How refunds are calculated after that
• Any cancellation or administrative fee
• How claims already paid affect your refund

Cancellation rules for home warranties are often shaped by state regulations, so terms can differ depending on where you live. Our home warranty by state page covers general differences.

Common refund approaches

Many contracts follow a similar pattern:

• Within an initial period. If you cancel soon after buying and haven't filed a claim, many plans offer a full refund.
• After that period. Many plans offer a prorated refund for the unused months, minus a cancellation fee if the contract includes one.
• After claims. Some contracts subtract the cost of repairs already paid from your refund. In some cases, that can reduce the refund to nothing.
• Monthly plans. If you pay monthly, canceling usually stops future payments. Refunds of the current month vary by contract.

These are general patterns, not rules. Your contract and state law decide what applies.

Steps to cancel

1. Find your contract number. It's on your contract or welcome email.
2. Contact the provider. Use the method listed in the contract. Some require a written request.
3. State your request clearly. Give your name, address, contract number and the date you want the cancellation to take effect.
4. Ask about the refund. Get an estimate of the amount and when it will arrive.
5. Request written confirmation. Keep it with your records.
6. Watch your statements. Make sure automatic payments stop and any refund arrives.

If you paid through a real estate closing, the refund may go to whoever paid, which might be the seller or a closing agent. Ask the provider how that works.

Canceling when you sell your home

When you sell, you have a few options:

• Transfer the plan to the buyer. Many home warranties can transfer, sometimes at no charge, which can be a selling point.
• Cancel and get a refund. Useful if the buyer doesn't want it.
• Keep coverage through closing. Some sellers keep coverage active during the listing period.

Talk with your real estate agent about what's typical in your area.

Before you cancel, consider this

Canceling makes sense for some homeowners, but think through a few points:

• Age of your systems. Older heating, cooling and water heaters may be more likely to need repair. See our pages on heating coverage and water heater coverage for what plans usually include.
• New appliances. Manufacturer warranties on new appliances may overlap with your plan for a while.
• Your budget. Can you comfortably pay for a sudden major repair?
• Waiting periods later. If you cancel now and sign up again later, you may face a new waiting period.
• Switching plans. If you're unhappy with coverage, a different plan might be a better fit than none.

If you have trouble canceling

Most cancellations go smoothly. If you run into delays:

• Put your request in writing and keep copies.
• Note dates, names and what you were told on each call.
• Ask for a supervisor if the issue isn't resolved.
• Contact your state's consumer protection office or the agency that regulates home warranties in your state if needed.

How Warranty Wizards can help

We help homeowners compare home warranty plans from independent third-party providers and explain coverage, cancellation and transfer terms before you buy. If you're looking for a new plan, get a free quote at get a quote.