Many homeowners express concern about the reputations of home warranty companies. One factor that affects a provider’s reputation is its claims process. Some providers offer a clear, easy-to-follow claims process that starts and finishes within an expected time frame. Others don’t.
We developed questions about our respondents’ experiences filing claims with their providers. To gather accurate results, we collected responses from our pool of 1,000 respondents who own a home warranty and have filed a claim with their provider. Out of the 1,000 respondents, 654 filed a claim. Therefore, we pulled the percentages in this section from our pool of 654 respondents.
Positive Claims Experience
We asked our respondents to pick the best aspect of their latest claim experience. Of the 654 participants, 37% picked a good customer service experience. An additional 37% considered a quick and easy claims process to be their favorite aspect, while 16% picked having a knowledgeable service provider. Meanwhile, 9% enjoyed only paying their service call fee for a repair. Less than 2% of respondents didn’t know their favorite aspect or enjoyed an aspect not mentioned in the question. Overall, 90% of the 654 respondents were either very satisfied or satisfied with their claims experience.
Negative Claims Experience
We asked our respondents about the worst aspect of their latest claims experience. Note that 27% of respondents did not have a negative experience filing a claim.
Of our survey respondents, 22% said their claims process was confusing or that their claim took too long to process. A provider outlines its claims process in its sample contract. It describes how long it generally takes and what the provider requires from you. Ask a customer service representative to explain the claims process to get a better idea of what to expect.
Additionally, 14% of respondents were unhappy they paid more than just their service call fee for a repair. Providers list coverage limits in their sample contracts. Home warranty companies cover repairs and replacements up to their established coverage limits. For example, if a replacement for your water heater costs $1,100 and your policy covers water heaters up to $1,000, you are responsible for paying the $100 difference.
Out of the 654 respondents, 7% considered a denied claim their least favorite aspect of their claims experience. Providers also list coverage exclusions and limitations within their sample contracts. We recommend reading through your provider’s sample contract to understand what’s considered a covered item, what components and instances are covered, and the restrictions placed on coverage.