Scams related to home protection plans and warranties are spiking at an alarming rate. How is it even worthy? Isn’t a home protection plan exquisitely designed to save you from busting your finances, otherwise paid for footing the costs of repair, replacement and maintenance?
There are plenty of stories online describing the horrifying experience of losing money and having to deal with fraud home warranty companies. Bearing the consequences of a money scam after spending most of your funds on a property is difficult to soak in. And with very little room to retain your faith, you end up choosing not to invest in a home protection plan at all.
The odds are high. Even the slightest of faults in appliances or home systems could score long and expensive bills. Let’s ditch the fear of falling prey to scams and learn about ways to keep your money secured and put to the right use.
Are you eager to learn the ropes of how to stay away from suspicious companies? Great! But first, let’s quickly take a look at the primary reasons why people believe that a good number of home warranty companies are fraudsters.
What makes people reckon home warranty companies as dishonest?
The internet is flooded with companies, putting the best of home protection plans and covers up for grabs. Of course, there are good and trustworthy companies in business. What strikes hard and shatters your faith are companies with horrible reputations and bad reviews. Here’s why the distrust in people reaches an all-time high.
1. Terms pitched are vague — Many of us do a massive error of skipping reading through the terms and conditions carefully. Result? You miss points that work against your favor in times of need. For instance, it could be specifically mentioned that the company will not pay for appliances that are not maintained properly. Or, only a specified amount will be granted as cover against a mechanical system or an appliance.
2. Hassle in the cancellation process — It is okay to feel that you are not keen on carrying out business with a particular home warranty company. What ties you in is a tedious and hard-won cancellation process! Regardless of the company you pick for your home protection plan, the cancellation process should be a cakewalk. Quite a few companies might need you to submit a notice, 30-days prior to canceling the plan. Keep distance from such providers.
3. Hidden service charges and fees — This is a serious problem! Good and trustworthy companies often charge you a one-time fee while signing up for the annual service contract. Pressing service charges every time an appliance blows out or a home system crashes is unwanted and worthless.
4. Denying to settle claims — When a home warranty company turns down a claim for no good reason, the company is certainly not worth your trust. Why settle for a depreciated value for a faulty appliance? A home warranty plan pays for the replacement of appliances if the same fails to function and is ruined. Frequent denials in claims can raise doubts in the minds of customers.
5. Delayed service — Simply put, a home protection plan promises prompt service when needed. Companies failing to act, soon after the initial call has been reported sprout anxiety in a customer’s mind. It is easy to feel scammed if the phone calls go unanswered and no good service is provided.
Tips to choose the right home warranty company
1. Reviews are always a boon. Gone are the days when you could only depend on trial and error. Simply google the company you are inclined to purchase a home protection plan from. There are innumerable reviews and authentic ones from real customers. Reviews will help you come to a clear notion about the company.
2. Enquire about the company and seek suggestions from realtors and others relevant.
3. Create a list of companies and ask for quotes from each of them. Compare the pricing and the plans. This will help you curate the best home warranty cover at the most reasonable price.
4. Check for the availability of add-ons. Your home protection plan must allow you to tweak and add or remove items covered, as per your need.