Home Warranty Cancellation – Buyer Beware


A home warranty cancellation is something to think about carefully because of the potential costs.  A home warranty company cancellation can normally be done within 30 days of purchase, but do not expect a full refund!  Before making the home warranty cancellation call or sending the cancellation letter, read the home warranty contract carefully to determine how they will calculate the refund.

You Are Canceling My Home Warranty Contract?

Canceled Home Warranty Mad ManBelieve it or not, the home warranty company may cancel your home warranty contract!  Remember, home warranty companies are in business to make, not loose money!  But then again, there are some rules home warranty companies must follow.  The basic rules that allow them to cancel a home warranty contract include:

  • Consumer does not pay the premium
  • Fraud or misrepresentation by consumer or someone acting on their behalf
  • Change in laws or regulations
  • Home warranty is unable to meet their obligations specified in the contract

I No Longer Love You, Cancel My Home Warranty?

If the home warranty company or consumer does a home warranty cancellation within the first 30 days, the home warranty company will provide a refund or request additional payment based on the home warranty cancellation clause.

Home Warranty RepairI Want My $2!

  • If home warranty company did not provide any services to the consumer, the consumer may expect a full refund.
  • If any services were provided, the consumer can expect the home warranty to take the amount originally paid by the consumer for the home warranty contact, and minus what the home warranty company paid out services.
  • If the home warranty company paid out more for services than what the consumer paid for the home warranty contract, they may request the difference from the consumer.
  • If the consumer cancels the home warranty, the home warranty may charge and administrative fee that is legally permitted.



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