Integrity in Home Warranty Companies
Dennis AuBuchon
December 04, 2008
The home warranty business is something on which many people depend when they buy a home. This however, can be less than a good experience when you have a problem, which is not your fault. Home warranties can be from the builder of the home warranty companies that is included as part of the financing for your home. Either way you choose can be a problem when issues surface once you move in. Many times problems can be unforeseen, which is not the fault of the purchaser of the home. The problem in some cases, not all, can arise if those who are providing the warranty service are not reputable and take advantage of every condition to keep them from covering issues when they arise.
Buying a home is one of the biggest decisions people make and is not one they take lightly. They want to make sure that expenses that develop through no fault of their own will be covered either by a warranty from the builder or a policy purchased from a company that specializes in home warranties. I am sure many warranty companies honor their commitments to their customers but others give the home warranty segment of society a bad name. While companies need to make a profit to stay in business, they should not do so at the expense of their customers. The rest of this article will discuss home warranty situations between a new house and an older one.
Warranty contracts for new homes do not normally have the problems that older homes have. Everything is new and typically, warranty clauses do not contain or apply pre-existing conditions to the terms of the contract. The impression given with many home warranty companies for previously owned homes is that when expensive failures arise that they are covered. Home warranty companies need to have integrity in that when insuring previously owned homes that they make sure prospective customers understand that pre-existing conditions are not covered and what is the definition of a pre-existing condition. While this situation may be included in the contractual agreement, many may not realize that this limitation exists. Simply putting this condition in some obscure portion of the contractual terms is not being honest upfront with their customers.
The big question for the home warranty industry is if there is no warranty for pre-existing conditions, why even insure previously owned homes. This is bad customer relations and is something the home warranty industry must address to put integrity in the industry and honestly deal with customers. The purpose of a home warranty company in my opinion is to insure the possibility of costly failures within the period covered by the policy. Companies who provide home warranty packages for new homeowners must be honest with potential customers even If it means not signing them as a customer. It creates bad impressions of the industry and their company. People who buy warranty policies have friends and the worst way to get bad publicity and lose potential customers is not being honest upfront about what they cover in their discussions. When I am considering purchasing a product or service I talk to my friends and co-workers and learn from them. This is the best possible way to get real experiences from others who have purchased products or services.
My last point in this article is that today consumers want to deal with companies who have integrity. When people receive information from their friends or co-workers about a company they can choose to use the same company or another based on their experiences. Companies who treat their customers with integrity and respect will gain more customers simply by word of mouth when they talk to others. Companies should want positive feedback from their customers not negative feedback. There are too many experiences in society today where integrity has not existed and it hurt not only the company but also anyone involved with it including their customers and employees.
Companies such as home warranty companies must have integrity and honestly present the details of contracts to potential customers. They need to notify them during their conversation of any limitations that would prevent them from covering expensive failures. The purpose of purchasing a home warranty for any new or older homes is to provide homeowners with an insurance policy to cover expensive failures. Home warranty contracts are an insurance policy that homeowners purchase and companies take a chance that nothing will happen that would cause them to pay out money to make repairs or replacements.
Buying a home is one of the biggest decisions people make and is not one they take lightly. They want to make sure that expenses that develop through no fault of their own will be covered either by a warranty from the builder or a policy purchased from a company that specializes in home warranties. I am sure many warranty companies honor their commitments to their customers but others give the home warranty segment of society a bad name. While companies need to make a profit to stay in business, they should not do so at the expense of their customers. The rest of this article will discuss home warranty situations between a new house and an older one.
Warranty contracts for new homes do not normally have the problems that older homes have. Everything is new and typically, warranty clauses do not contain or apply pre-existing conditions to the terms of the contract. The impression given with many home warranty companies for previously owned homes is that when expensive failures arise that they are covered. Home warranty companies need to have integrity in that when insuring previously owned homes that they make sure prospective customers understand that pre-existing conditions are not covered and what is the definition of a pre-existing condition. While this situation may be included in the contractual agreement, many may not realize that this limitation exists. Simply putting this condition in some obscure portion of the contractual terms is not being honest upfront with their customers.
The big question for the home warranty industry is if there is no warranty for pre-existing conditions, why even insure previously owned homes. This is bad customer relations and is something the home warranty industry must address to put integrity in the industry and honestly deal with customers. The purpose of a home warranty company in my opinion is to insure the possibility of costly failures within the period covered by the policy. Companies who provide home warranty packages for new homeowners must be honest with potential customers even If it means not signing them as a customer. It creates bad impressions of the industry and their company. People who buy warranty policies have friends and the worst way to get bad publicity and lose potential customers is not being honest upfront about what they cover in their discussions. When I am considering purchasing a product or service I talk to my friends and co-workers and learn from them. This is the best possible way to get real experiences from others who have purchased products or services.
My last point in this article is that today consumers want to deal with companies who have integrity. When people receive information from their friends or co-workers about a company they can choose to use the same company or another based on their experiences. Companies who treat their customers with integrity and respect will gain more customers simply by word of mouth when they talk to others. Companies should want positive feedback from their customers not negative feedback. There are too many experiences in society today where integrity has not existed and it hurt not only the company but also anyone involved with it including their customers and employees.
Companies such as home warranty companies must have integrity and honestly present the details of contracts to potential customers. They need to notify them during their conversation of any limitations that would prevent them from covering expensive failures. The purpose of purchasing a home warranty for any new or older homes is to provide homeowners with an insurance policy to cover expensive failures. Home warranty contracts are an insurance policy that homeowners purchase and companies take a chance that nothing will happen that would cause them to pay out money to make repairs or replacements.
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