Top Reasons Home Warranty Claims Get Denied (And How to Avoid Them)
Home warranties can be a lifesaver when a major system or appliance breaks down. But for many homeowners, that peace of mind quickly disappears when their claim gets denied `often for reasons they didn’t see coming.
In 2025, denied home warranty claims are still one of the top complaints among policyholders. The good news? Most of these denials are completely preventable if you know what to look for.
In this guide, we’ll walk through the most common reasons claims get rejected and show you how to protect yourself before issues arise.
1. Pre-Existing Conditions
Why it’s denied:
If your appliance or system had a problem before your home warranty coverage began, your provider is likely to reject the claim. This includes long-term leaks, rust, or a unit that hasn’t functioned in months even if you just noticed it.
Real-world example:
After closing on a house, Julia tried to file a claim on a broken garbage disposal two weeks into her warranty. The provider denied it, citing signs the issue existed before her plan began.
How to avoid it:
- Have a professional home inspection before starting your warranty
- Take dated photos of appliances and systems in good working order
- Report any signs of wear to the provider early even if they seem minor
2. Improper Maintenance or Neglect
Why it’s denied:
Home warranties only cover failures due to normal wear and tear. If you haven’t kept up with recommended maintenance, your claim may be considered invalid.
Common issues:
- Failing to flush your water heater annually
- Dirty HVAC filters causing compressor failure
- Ignoring small plumbing leaks until they worsen
How to avoid it:
- Follow manufacturer-recommended maintenance schedules
- Keep records of service visits, even for DIY tasks
- Ask the warranty company what they require as proof of maintenance
3. Damage Not Caused by Wear and Tear
Why it’s denied:
If damage occurs from an accident, misuse, or an outside force like flooding or pests, your warranty won’t cover it.
Important distinction:
A home warranty is not home insurance. It doesn’t cover:
- Storm damage
- Electrical surges
- Fire or water damage from external sources
How to avoid it:
- Use appliances according to their instructions
- Install surge protectors for electronics and HVAC systems
- Consider bundling a home insurance policy alongside your warranty for broader protection
4. Code Violations or Improper Installation
Why it’s denied:
Warranty companies typically require that your home systems were installed correctly and meet current building codes. Any violation or DIY job that doesn’t comply can disqualify your claim.
Examples:
- Electrical work done without a permit
- Improper HVAC venting
- Mismatched appliance parts or modifications
How to avoid it:
- Always hire licensed, insured professionals for installations
- Keep invoices showing the work met local code standards
- Avoid modifying major systems without checking your policy
5. Coverage Limits or Exclusions
Why it’s denied:
Every home warranty plan has coverage caps a maximum dollar amount the company will pay per item, per year, or per claim.
If your repair costs exceed those limits, you’re responsible for the rest. Some plans also exclude certain brands, luxury models, or cosmetic repairs.
How to avoid it:
- Know your plan’s caps and exclusions before signing
- Upgrade to a higher-tier plan if you have high-end systems
- Read the “Terms and Conditions” (yes, really)
6. Claim Filed Too Late
Why it’s denied:
Delays in filing can make your claim void. Most companies require that you report the issue within 24–48 hours after discovering it.
Waiting to see if the problem gets worse or attempting DIY fixes first can backfire.
How to avoid it:
- File claims as soon as possible after a breakdown
- Use your provider’s app or online portal to speed up the process
- Don’t try to fix the issue yourself before calling the warranty company
7. Unauthorized Repairs or Contractors
Why it’s denied:
Most home warranty companies have their own network of approved technicians. If you hire your own contractor without authorization, your claim may be automatically denied even if the work was necessary.
How to avoid it:
- Wait for your provider to assign a technician
- Get written approval before making emergency repairs yourself
- Clarify if emergency services outside of business hours are reimbursable
8. Expired or Lapsed Coverage
Why it’s denied:
You may assume your coverage is active, but if your plan expired or you missed a payment, your claim won’t be accepted.
How to avoid it:
- Set up automatic payments to avoid missing a renewal
- Keep digital copies of your current plan and coverage start/end dates
- Confirm active status before filing a claim
Preventive Checklist: How to Avoid Claim Denials
Here’s a quick-reference checklist to keep your coverage strong and your claims clean:
- Review and understand your contract
- Perform and document regular maintenance
- File claims immediately after a breakdown
- Never make unauthorized repairs
- Keep proof of proper installation and code compliance
- Use appliances correctly and safely
- Track your plan’s start and renewal dates
Bottom Line:
Most claim denials happen not because of fine print trickery—but because homeowners simply aren’t aware of what’s required. Taking a few simple precautions and staying organized can dramatically reduce the chance of rejection.
Want to protect yourself even more? Start smart with your next big purchase.
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