Home Warranty Education

Top 5 Reasons Why Your Claim Might Be Denied

Written by Mari-Allyson Dee-Taylor

header image for the blog top 5 reasons why your claim might be denied

At Landmark, we pride on ourselves on our 94% approval rate on claims opened in the the last 12 months. But what about the other 6% of claims? Here are the top 5 reasons your claim may be denied.

1: The home’s system or appliance that has failed is not covered under your contract.

image showing all of the top five reasons why your claim might be denied

Before purchasing a home warranty, it is important to do your research about a company's contract. When doing this research, focus on what part of your home’s systems and appliances you’re most concerned about failing in the next year. For instance, did you just get a new roof? In that case you probably don’t need to worry about adding roof coverage. However, if your HVAC system has never been replaced, that might be something to keep in mind when looking at what home warranty coverage to purchase.

Once you purchase a home warranty, make sure to read your contract! Your contract will answer any questions that you have about what is and what is not covered. If you have a system or appliance that fails and it is covered under your contract, your claim should not be denied, as long as it also does not fall into one of the other categories below.

2: The home’s system or appliance that has failed was not properly maintained.

image explaining that the second reason why your claim might be denied

In order for your contact to cover the failure of an appliance or system it must have failed due to normal wear and tear.

The standard of maintenance that Landmark’s contract requires is determined by the manufacturer’s specifications. If you open a claim on your HVAC system because it has stopped working, a contractor will come out to determine the reason for the failure. If the contractor determines that the failure is because you have never changed your filter, which should be changed every 1-3 months, it would be considered lack of maintenance. In this case the repair or replacement will ultimately not be covered by Landmark.

It is your responsibility as a homeowner to maintain your home’s systems and appliances.

3: Improper installation of a home’s systems or appliances

full infographic explaining what all five reasons for why your claim might be denied are

Any installation that goes against city or state code, as well as the manufacturer’s specifications, is considered improper installation. To avoid improper installation, have a licensed professional install the system or appliances.

For an HVAC system, there are certain manufacturer specifications for installation regarding air flow. There are also codes for installations specific to each state and city that need to be followed. A licensed and well-reviewed professional installation company is aware of these codes they must follow. These codes are put in place to keep you safe and your HVAC system running efficiently. If these codes are not followed, it can cause your HVAC unit to fail early, which would not be covered under your Landmark home warranty.

4: There are pre-existing conditions that were found in a home inspection

image explaining how a pre-existing condition can be a reason why your claim might be denied

A pre-existing condition is when a system or appliance has failed or is failing before the home warranty coverage starts. Landmark will not cover pre-existing conditions if the problem was noted in the home inspection, and it was not fixed before closing. Landmark will also not cover pre-existing conditions if the problem would have been easily detectable by a simple visual or mechanical test 60 days prior to the start of the coverage.

Landmark will cover pre-existing conditions if:

  • A home inspection is completed 60 days prior to the start of the coverage and shows the system or appliance that has failed was in good working condition and properly maintained.
  • A visual or mechanical test 60 days prior to the start of the coverage would not have shown any sign of failure, and the system or appliance would have been in good working condition and properly maintained.

5: Secondary damage

image explaining why secondary damage is a reason for your claim to be denied

In Landmark’s contract it’s stated that secondary damage is not covered. Secondary damage is any additional damage caused by the initial or primary damage or failure. For example, if basement floods because of a pipe break, your home warranty will cover the repair of the pipe but not the secondary damage caused by the flooding. Your homeowner’s insurance should cover that repair.

If you are asking yourself if a home warranty is worth it, look at the numbers here!

You can open up claims online here https://www.landmarkhw.com/claim, or call 866.306.2999

Other resources you might be interested in:

header image that links to the blog your responsibilities as a home warranty homeowner header image that links to the blog does a home warranty cover pre-existing conditions header image that links to the blog why you should read your home warranty contract

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