Glossary
The Warrantyist 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.
Billing
- Home warranty service fee A flat dollar amount, billed by the warranty company to the homeowner each time a contractor is dispatched to look at a covered system or appliance, regardless of whether anything is repaired.
- Trade call fee An older industry name for the service fee. A flat charge billed each time a contractor is dispatched, named after the trade (plumbing, HVAC, electrical) the contractor practices, rather than after the visit itself.
Claims
- Denial The carrier's formal refusal to pay a claim, delivered with a citation to the contract clause it believes lets it off the hook. A denial is a legal position, not a final answer, and it is reversible more often than the letter implies.
Contract terms
- Coverage cap The dollar ceiling a warranty contract places on what the carrier will spend to repair or replace a covered item. Depending on the carrier, the ceiling applies per claim, per system, or as one aggregate number for the whole contract year.
- Exclusion Any component, condition, or cause of failure the contract names as outside coverage. The exclusions section is the operative part of a home warranty; the coverage grid is the advertisement.