What to Do Before Closing on Your Home: Check Your Home Warranty Provider
Purchasing a home is a major milestone—but before you close, it’s important to protect yourself against unexpected repair costs. A reputable home warranty can provide peace of mind, but not all companies are created equal. Use this step-by-step guide to evaluate your home warranty provider before you sign on the dotted line.
1.
Is the Home Warranty Company Properly Licensed?
Unfortunately, some unlicensed “fly-by-night” home warranty companies operate without proper credentials, leaving you with no recourse if a claim is denied.
- Confirm that the company is licensed with the Nevada Department of Insurance (DOI).
- Check the list of licensed service contract providers here.
- Learn more at Nevada DOI – Service Contracts.
- If you’ve already purchased from an unlicensed company, file a complaint at pcinsinfo@doi.nv.gov.
Also check the company’s state and county business licenses:
2.
Check Their Standing with the Better Business Bureau (BBB)
The BBB is a trustworthy, independent source for company reviews—unlike platforms that can be manipulated, such as Google, Yelp, or Facebook.
- Look up the provider here: BBB Home Warranty Information.
- A poor or missing BBB rating is a major red flag.
- If the company doesn’t appear on the BBB at all, that’s also a warning sign.
3.
Read the Entire Contract Before You Commit
Before purchasing:
- Review which major systems and appliances are covered.
- Look for exclusions, limitations, and deductibles.
Carefully reading the fine print now can help you avoid costly surprises later.
4.
Understand Pre-Existing Condition Clauses
Home warranty companies frequently deny claims due to so-called “pre-existing conditions.”
- If they challenge your home inspection report, they should perform their own independent inspection before issuing a policy.
- If this happens, reach out to your home inspector before making any payments to the warranty company or their contractor.
5.
What to Do If a Claim Gets Denied
If your warranty provider denies a claim:
- You may request another contractor within their network.
- If issues persist, escalate to a customer service representative.
- If the denial is unfair, file a complaint with the Nevada Division of Insurance.
Home warranty companies are required to send licensed contractors for repairs. If the contractor is unlicensed or performs poor work:
- File a complaint with the Nevada State Contractors Board.
- Understand the difference between a licensed contractor and a handyman.
- Always verify contractor licensing status before allowing work to begin.
Some home inspection companies advertise “warranties” or guarantees that sound too good to be true. They probably are.According to NAC 645D.470.2, licensed Nevada home inspectors are prohibited from offering any warranties or guarantees.
Final Thoughts
We always recommend clients consider purchasing a home warranty, especially for protection against major system failures after close. Not all warranty companies or contractors are bad—but it pays to do your homework.Remember:
Just because a system is working today doesn’t mean it will be tomorrow.
Issues can arise during escrow, after your home inspection, during final walkthrough, or shortly after closing.
5 Must-Knows About Home Warranties Before & After Buying
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