How to Terminate a Home Warranty
A home warranty is like an insurance plan for your house---pay up front and the warranty company will partially cover the cost of future basic repairs.
In particular, a home warranty is an excellent option for first-year homeowners who can't predict the maintenance issues that might spring up down the road. Sometimes, however, as the initial home improvement kinks get worked out, a warranty becomes unnecessary. Perhaps you are a home seller looking to switch to a better warranty plan in order to entice potential buyers. In either case, knowing how to terminate a home warranty plan will serve you well.
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Instructions
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Wait for your home warranty to expire. Most home warranties, whether provided by the seller of your new home or purchased by you, are only good for one year. At that time, you can opt to simply not renew your plan, which will automatically terminate just like an insurance policy.
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If you want to terminate your home warranty before the expiration date, read the warranty's user agreement carefully. Each warranty company has its own terms of cancellation. However, most will give you a full refund if the termination occurs within 30 days of the warranty purchase.
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If you terminate your home warranty after the nominal probation period, you could receive a prorated refund based on how much time is left in the unexpired term. Again, read your warranty's user agreement carefully before termination.
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Expect to pay a nominal administration fee. Whether you terminate within your warranty purchase's probationary period or afterward, the warranty company will almost certainly subtract a processing charge, ranging from $25 to $100.
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