How Real Estate Agents Can Help Clients Understand the Home Warranty Claim

Process

A home warranty can be a valuable resource for homeowners, especially when an unexpected breakdown happens after closing. But like any service agreement, the process matters.

For real estate agents, helping clients understand how to file a claim upfront can make a big difference in their experience. When clients know what to do before something breaks, they are less likely to feel confused, frustrated, or caught off guard later.

One of the most important things to explain is this: the claim must be filed before repair work begins.

The First Step: File the First Notice of Loss

When a covered system or appliance breaks down, the client’s first step is to submit a claim, also known as the First Notice of Loss.

This is how the home warranty company is notified that there is a potential covered issue.

Clients can typically submit the claim in one of two easy ways:

They can file the claim online, or they can call the claims department directly.

Either option starts the process and allows the claims team to review the issue, explain the next steps, and provide the expected contact time.

Why Filing First Matters

It may seem natural for a homeowner to call a contractor right away, especially when something urgent happens. But with a home warranty, it is important that the client follows the claim process first.

The terms and conditions generally require notice of the breakdown and prior authorization before services or parts are provided.

That means the client should not hire a contractor, approve repairs, or pay for work before the claim has been submitted and direction has been provided.

A good way to explain it to clients is:

File the claim first. Wait for direction. Then move forward the right way.

What About Using Their Own Contractor?

Many homeowners appreciate having flexibility, including the possible option to use their own contractor.

That option can be helpful, but it is very important that clients understand it does not mean they can hire someone first and submit the bill later.

The client must follow the claim process first. The own-contractor option must be reviewed and approved according to the terms and conditions. In many cases, the contractor may also need to meet certain requirements, such as being properly licensed and insured.

Any work completed before authorization may not be eligible for coverage or reimbursement.

A Simple Way Agents Can Explain It

Here is an easy script real estate agents can use with clients:

“When something breaks, the first step is to file a claim online or call the claims department. This starts the First Notice of Loss. Do not hire a contractor or start repairs before the claim is filed and you receive direction. There may be an option to use your own contractor, but that must be approved first and handled according to the terms and conditions. Filing first helps protect your coverage and avoids unnecessary out-of-pocket costs.”

The Goal Is a Smoother Claim Experience

A home warranty should help make unexpected breakdowns easier to manage. The process is designed to be simple, but clients need to know the proper steps.

For agents, this is a great opportunity to be a helpful resource after the sale. Taking a few minutes to walk clients through the claim process can help them feel more confident and prepared.

The most important reminder is simple:

Submit the claim first. Get direction from claims. Then proceed with the approved next steps.

When clients understand the process before they need it, the home warranty experience becomes much easier, clearer, and less stressful.