Cancelling Your Home Warranty: A Step-by-Step Guide

Home warranty protection is a form of insurance designed to provide homeowners with an affordable repair option in the event of a major appliance or system malfunction. The average home warranty plan requires homeowners to pay a flat rate deductible for each service call in addition to an annual fee. While home warranties are useful for protecting older appliances, some homeowners find that they no longer need a home warranty plan. When this happens the homeowner must take steps to cancel the home warranty plan in order to avoid additional charges.

Step 1

Review the home warranty policy for cancellation and renewal terms. Home warranty companies often charge cancellation fees to homeowners who terminate warranties before the end of the contract term. To avoid excessive fees homeowners should cancel towards the end of the contract term at least 60 days prior to the contracts renewal date. If the home warranty contract does not appear to include a renewal date or cancellation penalties contact the warranty company's customer service representatives for confirmation.

Step 2

Prepare a signed and dated cancellation letter. The letter should include the policyholder's name, property address, and contact number. It should request a policy cancellation within 30 days of the letter date and written confirmation of the termination. After signing the letter, fax a copy to the warranty company and mail a hard copy to the company using a delivery confirmation service.

Step 3

Contact the warranty company via phone two weeks after mailing the cancellation letter to verify that the coverage has been canceled. Document the name of the representative who takes the call along with the date and time of the call. Ask to receive written confirmation again, by mail or fax.

Step 4

Monitor bank accounts and credit cards that have been used in the past for home warranty payments if renewal payment has been made automatically in the past. If the home warranty company debits an account for an unauthorized renewal fee, contact the bank or credit card issuer to dispute the charge. Be prepared to fax or mail a copy of the original cancellation letter and the company's confirmation letter.