Don’t Be Fooled: How to Spot and Avoid Home Warranty Scams

Home warranty scams are on the rise, and they can cost homeowners hundreds, if not thousands, of dollars. These scams involve companies that promise to provide homeowners with protection for their appliances and home systems in exchange for a fee.

Unfortunately, many of these are fraudulent, and homeowners pay for services they never receive. If you’re a homeowner, it’s essential to know how to spot, avoid, and report home warranty scams to protect yourself and your home.

Spotting Home Warranty Scams  

Home warranty scams can take on many forms, but they all have a few things in common. First, they promise to provide homeowners with coverage for their appliances and systems. Second, they charge a fee for this coverage. Finally, they fail to deliver on their promises. To spot a scam, look for these warning signs:

1. High-Pressure Sales Tactics: Many scams use high-pressure sales tactics to convince homeowners to sign up for their services. Beware of companies that pressure you to make a decision quickly or offer services that sound too good to be true.

2. Unsolicited Calls or Emails: Legitimate home warranty companies don’t typically make unsolicited calls or send unsolicited emails to homeowners. If you receive a call or email from a company you’ve never heard of, be cautious.

3. Lack of Information: Reputable home warranty companies provide detailed information about their services, including what is covered and what is not. If a company is vague about their services or refuses to answer your questions, it’s a red flag.

Avoiding Home Warranty Scams

The best way to avoid home warranty scams is to do your research before signing up for any services. Here are some tips to help you avoid being scammed:

1. Research the Company: Before signing up for any home warranty services, research the company online. Look for reviews, ratings, and complaints from other homeowners. Check the Better Business Bureau (BBB) website to see if the company is accredited and if there have been any complaints filed against them.

2. Read the Contract: Make sure to read the contract carefully before signing up for any home warranty services. Look for any hidden fees or exclusions that may not be covered.

3. Ask Questions: Don’t be afraid to ask questions about the services provided by the home warranty company. Legitimate companies will be happy to answer your questions and provide you with detailed information about their services.

Reporting Home Warranty Scams

If you believe you have been the victim of a home warranty scam, it’s important to report it. Reporting scams can help prevent other homeowners from falling victim to the same scam. You can follow these steps:

1. Contact the Company: If you believe that you have been scammed, contact the home warranty company and try to resolve the issue. If the company refuses to help or if you’re not satisfied with their response, move on to step two.

2. File a Complaint: File a complaint with the BBB, the Federal Trade Commission (FTC), or your state’s attorney general’s office. Provide as much information as possible, including the name of the company, the date of the transaction, and any documentation you have.

3. Spread the Word: Spread the word to other homeowners about the scam to prevent them from falling victim to the same scam. Share your experience on social media or write a review of the company online.

Conclusion

Home warranty scams are a serious problem, but they can be avoided by doing your research and being cautious. Remember to spot the warning signs of a scam, avoid signing up for services without doing your research, and report any scams that you encounter. By following these tips, you can protect yourself and your home from home warranty scams.

Protect your home and avoid scams with Home Membership. With us, you can choose your own service provider to ensure you get the service you require. Plus, you can submit your receipt to be reimbursed based on the totals in our brochure. Purchase a home warranty plan from us and enjoy peace of mind knowing that your home is in good hands.