Warranty Peace Glossary
"5 terms every homeowner should recognize before signing a contract." Each entry is a short read drawn from the warranty language carriers use during claims.
General
- Claim A formal request to the warranty company asking them to dispatch a contractor and pay for repair or replacement of a covered failure.
- Coverage cap The maximum dollar amount a home warranty contract will pay toward repair or replacement of a covered system or appliance, either per claim or per contract year.
- Denial A formal decision by the warranty company that a claim is not covered under the contract terms, citing one or more exclusions or contract clauses.
- Exclusion A specific condition, system, component, or cause-of-failure that the home warranty contract explicitly does NOT cover.
- Service fee A flat dollar amount the warranty company bills the homeowner each time a contractor is dispatched, regardless of whether anything is repaired.