Are Home Warranty Letters a Scam?
If you’ve been looking into home warranties, or have recently received a home warranty letter in the mail, chances are you’ve heard about the potential for scams. There are certainly malicious parties out there who intend to scam people with false promises and use home warranties as their chosen cover. However, home warranty letters are not a scam when they come from a bona fide warranty provider.
In this article, we’ll first explain what a home warranty is. Then we’ll walk you through a few of the details contained in home warranty letters that will help them make more sense. Explore all of this information and more in the following sections:
What is a Home Warranty?
A home warranty is a service that covers your appliances and home systems for damages related to natural wear and tear. If one of your appliances or home systems breaks, your home warranty plan will cover the cost of repairs or replacement within the limits of the contract.
In addition to repair and replacement services, home warranties may come with additional benefits. For instance, the home warranty plan provided by American Home Protect includes access to affordable handyman services.
For more information about home warranties and how they work, read our article “What is a Home Warranty?”
Why Did I Receive a Home Warranty Letter?
Home warranty letters often go out to new homeowners to alert them to the fact that their home is likely uncovered by a home warranty. Local and federal governments keep track of new homeowners and provide mailing addresses in publicly available databases. It’s the same reason you receive a lot of coupons as soon as you move to a new address.
It’s worth keeping in mind that the home warranty companies that send you letters have no way of knowing whether or not you already have a home warranty. The urgency of the language within these letters is intended to convey the importance of having a home warranty, not scare you into falling for a scam.
How Do I Make Sure a Home Warranty Letter Isn’t a Scam?
To determine whether or not a home warranty letter is a scam, you should take a look at the contents of the letter and research the company in question. Legitimate home warranty companies should have websites that tell you who they are and what they do.
Additionally, it’s worth exploring reviews from actual customers. Many home warranty companies, including legitimate ones, receive negative reviews from people who don’t use their service because they believe the letter is an attempt to scam them. We recommend taking a look at what actual customers have to say before you make a decision about the legitimacy of a home warranty company.
Read our article “Why American Home Protect is Not a Scam.”
Home Warranty Letter FAQs
Why do I keep getting home warranty letters?
Home warranty letters are often sent to new homeowners. If you recently purchased a home, it’s likely that you will receive a few home warranty letters. After a short period of time, the letters should cease.
How do I stop home warranty letters?
Usually, home warranty letters will stop arriving a few months after you move into your new home. If the letters do not cease, contact your local post office for potential remedies.
What is a warranty replacement notice?
A warranty replacement notice is a marketing letter sent by home warranty providers to alert you that you may not be covered by a home warranty.
Is home warranty the same as home insurance?
A home warranty is not the same as home insurance. Home insurance protects the structure of your home from things like natural disasters and vandalism. A home warranty covers your appliances and home systems against wear and tear.
Explore Home Warranty Plans from American Home Protect
Now that you know how to identify legitimate home warranty providers, you can separate the fake from the real. At American Home Protect, we pride ourselves on the quality of our services and aim to provide tangible benefits to all of our customers.
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