Don’t Waste Your Money: Home warranty warning


(WHTM) — One of the top complaints the better business bureau receives is warranty company complaints. Many people say a claim was denied. So, we wanted to know how to protect ourselves.

When Rosalie Battle’s 16-year-old heat and the air conditioning stopped working, she called her home warranty company. She had bene play them $500 a year for protection. So, they sent a repairman, who claimed it was a simple fix.

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“He said it was a fuse,” Battle said.

But, it wasn’t.

“Two hours later, it went out,” Battle added.

So, she called again and they sent a second repairman, who diagnosed a blown heat exchanger. But, she was stunned by what the warranty company then told her.

“They are not going to fix it because it’s a manufacturer’s defect. I said ‘what’s that got to do with me?’” Battle said.

They told her the $1,000 repair did not qualify for coverage.

A home warranty is supposed to give you peace of mind and pay for repairs such as when a hot water heater goes out. But then why are so many people complaining their warrant company denied them their claim?

Sarah Wetzel is with the Better Business Bureau. She says warranties are great if they actually cover the costs.

“So, consumers do need to take caution if they’re saying that everything is covered,” Wetzel said.

To protect yourself, Wetzel says to do the following:

  • Read the small print
  • Read the terms, conditions, and exclusions to make sure that you fully understand what you’re getting
  • Make sure that you read the whole contract before you sign anything

Rosalie ended up canceling her home warranty, saying it was worth $500 a year. So, do your homework first, so you don’t waste your money.