A lot of people assume there is a limit to the number of service requests or claims you can submit with your home warranty. This actually isn’t true. You can request service as many times as you need to during the year. Generally, this will not cause your price to go up like it would with your car insurance. If you get into 2 car wrecks in the same year, your rates are almost guaranteed to go up. If you place 2 service requests on your home warranty, your rates will likely stay the same or only increase as much as everyone else’s the next year.
Are there any hidden dangers in placing too many service requests? Actually, there are. Some companies have started dropping customers who file too many claims during a certain period of time. Because these customers are ultimately unprofitable for the warranty company, they don’t want to continue providing coverage for these people. A lot of these customers are very angry about their coverage disappearing, but think of it this way – a few needy customers are unnecessarily driving up the premiums for the rest of us. That’s not fair to the average customer, is it?
Don’t get me wrong though. I’m on the customers’ side. If you’ve been dropped by your warranty company and you feel like they were in the wrong, contact your provider right away and contest their decision. You never know – they might take you back! And if not, one of their competitors may take you instead.