Canceling your First American Home Buyers Protection (also known as First American Home Warranty) can seem daunting, but with the right information and approach, it can be a straightforward process. This comprehensive guide will walk you through the steps to cancel your coverage, highlight important considerations, and provide insights into potential challenges you might face.
Understanding Your Cancellation Options
Before diving into the cancellation process, it’s essential to know that you have two primary methods to cancel your First American Home Buyers Protection:
- Canceling over the phone
- Canceling via email
Let’s explore each method in detail.
Canceling Over the Phone
Step 1: Gather Necessary Information
Before making the call, ensure you have the following information ready:
- Your contact number
- Residential address
- Contact details
- Payment information (for any outstanding charges or potential refunds)
Step 2: Call Customer Service
- Dial the customer service number: 800.327.9292
- Request to speak with a representative about canceling your coverage
Step 3: Provide Details
When speaking with the representative:
- Share your contact number, residential address, and other relevant information
- This helps verify your identity and locate your account quickly
Step 4: Confirm Cancellation
- Listen carefully as the representative confirms your cancellation
- Take note of any information about outstanding fees or potential refunds
- Request a confirmation email or letter for your records
Canceling via Email
Step 1: Gather Necessary Information
Before composing your email, collect the following details:
- Your policy number
- Full name
- Effective date of coverage
- Contact information
Step 2: Compose a Clear Email
Write a concise email stating your intention to cancel. Include:
- Your policy number
- Full name
- Effective date of coverage
Step 3: Provide Policy Details
Ensure all details are accurate to facilitate the cancellation process. Format your email like this:
Policy Number: [Your Policy Number]
Full Name: [Your Full Name]
Effective Date of Coverage: [Effective Date]
Step 4: Reason for Cancellation (Optional)
While not mandatory, you may briefly mention your reason for cancellation if you wish.
Step 5: Request Confirmation
End your email with a polite request for confirmation:
Please confirm the cancellation of my First American Home Buyers Protection coverage and provide information on any further actions I need to take.
Important Considerations
Timing Matters: The 30-Day Window
The timing of your cancellation can significantly impact the process and potential refunds:
Within the First 30 Days
- You’re generally eligible for a full refund of your contract fees
- This applies only if you haven’t used any of their services
After the First 30 Days
- The process becomes more complex
- You’ll be subject to the terms and conditions of your contract
- This may include pro-rata refunds minus administrative fees (commonly $50)
- Charges may apply based on the remaining time left in your contract
Pending or Recent Claims
Be aware that First American Home Warranty can make cancellation difficult if:
- You have outstanding claims
- You’ve recently made a claim for repair
State-Specific Regulations
Cancellation policies can vary by state. Some key points to remember:
- Some states limit the amount a home warranty company can charge as a cancellation fee
- There may be specific notification requirements (e.g., written notice via certified mail)
- Review your service agreement for state-specific terms and conditions
Prorated Refund Calculation
If you’re eligible for a prorated refund after the 30-day period, here’s how it typically works:
- Calculate the daily charge: Total Cost ÷ Total Number of Days in Billing Cycle
- Determine unused days: Number of Days in Billing Cycle – Number of Used Days
- Calculate prorated refund: Daily Charge × Number of Unused Days
For example, if your monthly policy costs $100 and you cancel on day 15 of a 30-day cycle:
- Daily Charge: $100 ÷ 30 = $3.33 per day
- Prorated Refund: $3.33 × 15 unused days = $50
Remember to factor in the cancellation fee and charges for used days when determining your final refund amount.
Tips to Avoid Getting Stuck with the Contract
- Review Your Contract Thoroughly: Before signing or renewing, carefully read the terms and conditions, especially the cancellation policy.
- Cancel Early: If possible, cancel within the first 30 days to avoid complications and receive a full refund.
- Avoid Making Claims Close to Cancellation: Try not to make claims shortly before your intended cancellation date.
- Document Everything: Keep detailed records of all communications with First American Home Warranty.
- Follow Proper Procedures: Ensure you follow the correct cancellation procedures, whether by phone or email.
Final Thoughts
Canceling your First American Home Buyers Protection coverage requires attention to detail and an understanding of your contract terms. By following this guide and being aware of potential challenges, you can navigate the cancellation process more effectively. Remember to always keep records of your communications and don’t hesitate to seek clarification from customer service or your state’s Consumer Protection Agency if you encounter any issues.
