How to Cancel Your Home Warranty

How to cancel your home warranty plan

Most home warranty providers offer the flexibility to cancel your policy at any time. Here’s how it typically works:

1. Contact the home warranty company directly. You can usually cancel over the phone or sometimes online through the company's customer service portal.
2. Provide the facts. The customer service rep may ask you to provide account details and a reason for the cancellation. Be ready with your contract or account number.
3. Make sure the company knows where to send your refund.
4. Follow through with any instructions provided by the customer service representative to ensure your cancellation is processed correctly.
5. Ensure you receive a confirmation of the cancellation either in writing or by email. Keep this for your records to avoid any disputes about your cancellation date or any final charges.
6. Watch your bank account for any unauthorized charge, like automatic payments continuing after you cancel your home warranty contract. If that happens, you’ll need to have the charges reversed.

How to contact your home warranty company

Just about every home warranty company will require you to call its customer service line to cancel your plan. Sometimes, you can cancel through the customer portal or by email. For example, with Liberty Home Guard, you can cancel through the online customer portal, by calling 833-543-9400 or by emailing accounts@libertyhomeguard.com.

Here are the cancellation numbers of some of the biggest home warranty companies.

Home warranty cancellation fees

Most home warranties charge cancellation fees. What you pay depends on when you’re canceling. For the most part, home warranty companies will give customers a grace period after they sign up, typically 30 days. During the grace period, they can cancel without a penalty. The company will refund you anything you’ve paid so far, minus the cost of any claims the company helped you with.

After the grace period is over, though, you’ll run into fees. Companies commonly charge an administration fee and prorate your refund, minus the cost of any claims you’ve filed. Of course, what you owe will vary depending on your state and the particular company. Be sure to check your contract for details.

Alternatives to canceling your home warranty

If you’re unsure about canceling your home warranty altogether, there are a few alternative routes to consider that may help you retain some of the benefits without losing money.

If you’re moving and looking to cancel, you can transfer the plan to a new owner. Most home warranty companies allow you to transfer your warranty to a new homeowner if you’re selling your house. This can add value to your home and make it more attractive to potential buyers. Contact your provider to find out if a transfer fee applies and what information is required to make the switch.

If you’re looking to reduce the amount you spend on your home warranty, you can adjust your coverage. Instead of canceling, you may be able to change your coverage. Downgrading to a more basic plan or customizing coverage options could reduce your costs while still protecting essential systems and appliances. Review your contract or speak with your provider to explore these options.

There are also some instances where you should avoid canceling your home warranty. Canceling may not be the best idea if you’ve recently had claims paid out, as some companies will deduct those costs from your refund. Also, if your home systems are aging or you anticipate needing repairs soon, keeping the policy might save you money in the long run. Always weigh the potential cost of future repairs against what you might save by canceling.

Bottom line

It’s always worth considering why you want to cancel. There may be alternative solutions that could address your concerns, such as transferring the warranty if you are selling your home or adjusting your coverage to better suit your needs. No matter what, be sure to read your contract before you decide to cancel.