Slam The Door On These Home Warranty Scams

Aug 10, 2023 Safety & Security

Looking for a little extra protection for your home and wallet? Steer clear of home warranty scams with these tips.

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A common rule of thumb is to save 1% of your home’s purchase price for ongoing maintenance. However, if you’re worried about any big-ticket items breaking, consider a little extra protection. A home warranty might be a good idea if you’re concerned about fixing or replacing major appliances or systems. But, be careful who you do business with; there are many disreputable companies out there.

Common Red Flags

High-Pressure Tactics

Have you ever received a message alerting you that “YOUR HOME WARRANTY IS EXPIRING” in a matter of days? If so, this is just one of the many scare tactics used by bogus warranty companies. The best way to respond is to ignore these types of emails, letters, calls, or texts.

They Want Personal Details Up Front

A general rule holds true across the entire universe of scam prevention: never give out any information, personal or not, when someone initiates contact with you. If you have a home warranty, cease communication with the person contacting you immediately. Instead, reach out to your warranty provider directly using the contact information received when you purchased your policy.

No Online Reviews

No matter the product or service you’re considering purchasing, it’s always a solid practice to search for online reviews. The Better Business Bureau and Consumer Reports are excellent sources of information on the trustworthiness of a company. If you can’t find any independent reviews for the purported warranty provider, it’s best to avoid them.

Sketchy Contact Information

If you’re at all unsure if a warranty company is legitimate, ask them for detailed contact information – like email, phone number, and mailing address. You’ll know they’re running a scam if they aren’t able or willing to provide these.

How To Get A Sound Warranty

Take It Slow

There’s never any reason to rush into a decision about a home warranty. By taking the time to research all the options available in your area, you can make an informed decision rather than a hasty one.

Check Their Licensing

Each state can choose the governmental department overseeing home warranty companies. Take the time to find out which body regulates home warranty companies in your state. Next, contact that entity to ensure the companies you’re interested in are licensed.

Read The Fine Print

With all the services and products we sign up for these days, it’s easy to gloss over the small print contractual language. You don’t want to do that with a home warranty. Even if a company makes specific promises verbally, make sure the same coverage is explicitly mentioned in the contract. If it isn’t, look elsewhere.

Additionally, make sure the agreement doesn’t contain any vague language. It should clearly delineate what’s covered and for how much. In a legitimate agreement, fees and the claim process will also be clearly listed.

Talk With A Real Estate Agent

Because they deal with housing issues repeatedly as part of their job, real estate agents can be a wealth of knowledge on various home-related topics. If you still need to figure out if a company is legitimate, ask your real estate agent for some recommendations. If the company you’re considering differs from the ones they regularly see their clients using, look elsewhere.


Unfortunately, home warranty scams are omnipresent these days. But as with all scams, you can avoid costly mistakes if you can slow down and assess the situation.

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Maintaining Your Home After Purchase

Regular maintenance can help you save on unexpected repair costs. Find out what maintenance tasks to put on your list and things to consider when it comes to home warranties.

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