You need to be on your toes when signing a home warranty solution contract. Here are some common home warranty scams and ways to protect yourself.
That joyful feeling of stepping into your new home after investing so much time and money is unimaginable. You would not want to waste any time upgrading your lifestyle by purchasing different appliances and installing various types of systems in your home.
While you have one eye on personalizing your lifestyle, you will also be concerned about the systems and appliances malfunctioning or deteriorating. Dealing with such unpredictable repair and maintenance means bearing high costs and frustration.
But there is a way to ensure certainty in these unfavorable situations and have peace of mind. That is called home warranty coverage.
Stressed out about finding a reliable service technician and paying the high cost for the repair and fixes? A home warranty can be a lifesaver. This is a service contract between you and the company.
Once your deal is finalized and you buy the home warranty solution, the company is responsible for ensuring your covered home components are working fine. You can report damage by filing a service claim, and the home warranty company initiates the fixing process.
Remember, every home warranty company charges different service fees when you file a service claim. These will be significantly lower than the cost you would have had to pay if you did not have home warranty coverage.
On top of that, you also get smooth access to experienced service technicians to address the issues with your home components.
As good as home warranties sound, it is about finding the right company to provide the services you are looking for. Home warranty companies are like the five fingers of your hand. All of them are different. So, you need to assess your options for home warranty solutions.
And it is not all about the home warranty company being good enough. There might be companies that can leverage your lack of knowledge about home warranty solutions and scam you.
One of the best ways to protect yourself from these home warranty scams is to know the common occurrences you can expect. You are at the right place to get those answers before you get ripped off by a home warranty solution company.
If you want to counter home warranty scams, you first need to know what is going on. Usually, new homeowners are victims of home warranty scams as they sign the contract without understanding the terms.
Let’s look at some red flags to keep your eyes and ears open for during a home warranty deal.
Your first line of defense against home warranty scams is thoroughly understanding the contract before signing it. Clear, descriptive wording should be used about the types of coverages, costs, specifications of home components not covered, timelines, and other important details.
If the providers of home warranty solutions present a contract with vague terms, it is your cue to walk away from the deal.
Most companies offering home warranty solutions have a straightforward and uncomplicated claims filing process. Would your potential home warranty solution provider subject you to unnecessary complications and obstacles when attempting to file a claim? Such a home warranty company is one you should definitely avoid.
Every home warranty company has a different coverage limit for the plans they offer. Here is where you need to ensure two things.
If any of these two things are missing, the word home warranty scam is staring right into your eyes.
Make sure all costs and financials are specified in your contract. If you feel the company has not mentioned a cost or is trying to hide a potential expense that will be charged afterward, you might want to abort the deal.
Home warranty companies should not go for aggressive marketing like constantly calling or spamming you with emails. You don’t need to rush the decision in these situations. Do your research about the company and decide if you want to opt for their services or not.
Now that we have talked about some common home warranty scams you can expect, you need to learn how to protect yourself.
Here are a few ways to avoid becoming prey to home warranty scams.
You can look up the company reviews on digital platforms like Trustpilot, Yelp, social media platforms, and other reliable websites. This will tell you about the experience of previous customers of the company and if they faced a home warranty scam.
The feedback will also give you insights into how efficient the services of the company are and if it is worth availing their coverage.
Feedback on different platforms will likely be from people you don’t know. You can also ask about reliable home warranty solutions from the people in your network. These should ideally be from people who have used the service of the home warranty company.
One of the most common mistakes home warranty seekers make is they rush into opting for home warranty coverage without doing their research. This may also include giving your personal details and information.
Before you provide the information, make sure that the company is reliable. You never know how your information can be misused, and that can lead to you facing a home warranty scam.
The search for home warranty solutions should not only be for a company offering good services at competitive prices. You also need to find a home warranty company to save yourself from scams.
Now you know about some of the common home warranty scams in the home warranty industry. Additionally, you also have suggestions on how to protect yourself from these home warranty scams.
If you are on the hunt to buy a home warranty, you can explore options listed on our website, HAR.com. You will find home warranty agents and companies in various states of the country.
Subscribe to our monthly newsletter for up-to-date real estate industry trends, news, and insights.
Saved
