Home Warranty Scams

Like all other industries in existence, the Home Warranty industry too has its share of scams and scandals. People have often reported this as the worst industry. This is not true. This happens mainly due to the fact that most of the time only the bad experiences get shared while the good experiences are often forgotten.

However, it is indeed true that there have been a few annoyances in this industry that pissed of quite a large number of people.

The most recent home warranty scam reported was in the year of 2013, August. The Illinois department of insurance issued a warning to all its residents to avoid a so called Florida based appliance warranty company called Arkidus Home Protection, Inc. Apparently, the company under question had been unlawfully advertising home service contracts to Illinois residents via the internet. Those people who signed up for their services were met with constant denial of claims.

The company had previously received a cease and desist order from the state. There is no record of any license granted to this company authorizing them to sell home warranty services. The sad part is that Arkidus had somehow managed to convince majority of its customers to pay for a long term plan and those who did, ended up losing thousands of dollars. Strict legal action against them have not been taken so far and the chances of the customers receiving their reimbursements are slim.

So you see, here and there we do see cases of fraud and deceit, but that does not mean that the entire industry is made up of such greedy, unscrupulous people who operate without ethics. A few companies in this industry genuinely put the satisfaction of their customers above their own personal interests.

You can take a look at our Home Warranty Awards page to collect information about such reputable companies that were selected as best in the industry based on customer ratings and reviews. Home Warranty Awards, saw three companies emerge as winners in the categories Best Regional Company, Best in Service and Top Rated Company.

As a customer who expects his money’s worth from an appliance warranty company, you should keep in mind that you too can be a victim of Home Warranty Scams. Hence, it is of utmost importance that you select a company that comes with excellent recommendations and one that has been around for quite a lot of years.

Practice caution at all points and if anything seems suspicious report it right away. You can go through our Guide to Home Warranty Buyers to get some help in choosing a reputable firm. Although chances of being ripped off or cheated are low if you have selected a good company, there are still a few things you can follow that will help you protect yourself from scams or at least unpleasant incidents.

1. While you look around for a home service company, shortlist only those with a licence to do business in your state. If you are not sure, ask the company representative.
2. Gather information about the company’s background. Read online reviews, talk to your family, friends and other acquaintances and find out as much as you can.
3. Do not make any snap decisions and purchase financial products. Appliance warranties are first and foremost a contract. So don’t fall for any kind of hard sales tactics and make an impulse purchase. You may regret it.
4. Make sure that the company you picked has been in the industry for quite some time. Also you can access their social media pages to gather some insight about how well they solve their customer complaints.
5. Pay by check or card, as this will be easier to track down and keep records of. This shall also help if needs for reimbursement arise. Always go for month-to-month payment, at least until you trust the company.
6. Ask for a written contract with all the details written down on it. Then read this contract, go through all the clauses and fine print on it. You can have someone look at it if you want to be on the safer side. And finally ask for bills and invoice.
7. If at any point you doubt that you are being cheated or if you are not getting what you paid for, don’t keep that hidden. Spread the word, inform the authorities, make use of the various social media to alert people about a possible scam.

This industry, like every other industry, is a mix of good and bad. If you make a wise and informed decision, chances are low that you will be cheated. We sincerely hope you have pleasant experiences and that you will be happy with this industry.