These are items you you should do before you close on your house – check on your home warranty provider!
1) Is the Home Warranty Company Properly Licensed?
Believe it or not, there are “fly by night” Home Warranty companies who are not licensed by the Nevada Department of Insurance. They should be licensed by the Nevada Department of Insurance.
If you want any recourse for an improperly denied claim in the future, you should check to make sure they are licensed by the Nevada Department of Insurance. The complete list of licensed service contract providers is located here: http://di.nv.gov/ins/f?p=600:35
Additional Nevada Department of Insurance service contract information: http://doi.nv.gov/Consumers/Service-Contracts/
If you bought a policy from a company that is not properly licensed in the state of Nevada, you may email your complaint to: [email protected].
It would also be a good idea to verify Nevada State Business license: https://www.nvsos.gov/sosentitysearch/ & Clark County Business license: https://www.clarkcountynv.gov/business-license/services/Pages/BLSearch.aspx
2) Verify the Company is in Good Standing at the Better Business Bureau “BBB”
The BBB has been around forever, well before Yelp, Google & Facebook reviews which can be manipulated by company employees.
Here is the Better Business Bureau’s information on purchasing a home warranty: https://www.bbb.org/homewarranty/
If the company doesn’t exist with the BBB, that is not a good sign either!
3) Read the Entire Contract to Verify Coverages & Deductibles
Yes, read all that small print to verify that the large systems are covered. It is best to do your homework BEFORE you purchase the Home Protection Plan or Home Warranty rather than AFTER the large system decides to fail.
4) They Like to Claim “Pre-Existing Condition” & Deny Your Claim
And throw the home inspector under the bus when it is time for a costly repair!
If they wanted to show a pre-existing condition and refuse to believe your home inspection report when you purchased the home, they should have ordered their own independent inspection prior to issuing your policy to give specific exclusions.
We do stand behind our reports and findings so if you find yourself in a predicament with a home warranty company, please contact us for guidance and direction before paying the home warranty company or their contractor any money.
We are happy to be of service and a resource to the resource that you need!
5) If Your Home Warranty Company Denies a Just Claim…
… you may ask for another contractor within their network. If all else fails, request to speak to the customer services representative. You may also file a complaint with the Nevada Division of Insurance if the Home Warranty Company is being unreasonable if your complaint is just and fair.
Home warranty companies should be sending out licensed contractors for repairs. If the contractor does not provide proper service per NAC 624 https://www.leg.state.nv.us/nac/nac-624.html , you may file a complaint with the Nevada Contractor’s Board against the specific contractor. Also know the difference between a handyman and licensed contractor.
… be cautious with any home inspection companies that provide “too good to be true” home inspection warranties or guaranties with their service. Nevada Administrative Code governing licensed Inspectors of Structures prohibits a home inspector to make warranties or guaranties of any kind. (NAC 645D.470.2) https://www.leg.state.nv.us/nac/nac-645d.html
All of the Above Being Said:
We always encourage our clients to purchase a home warranty plan to enjoy the benefits in the event of a major system failure. Not all Home Warranty Companies or Contractors are bad!
The fact is, systems that are running today may not be running tomorrow. Systems break during escrow, after a home inspection and after you perform the final walk through on your new house and after close. We are unable to guide or direct our clients to a certain company (an appearance of an impropriety IS an impropriety,) but do encourage our clients to do thorough research to find the best company to suit their needs!