You have the right to cancel your home warranty. What you get back depends on your contract terms, your state’s law, how long you’ve had the policy, and whether the company has paid any claims.
Legal information only, not legal advice.
Every home warranty contract includes a cancellation provision. In most states, you also have statutory minimum cancellation rights that exist regardless of what the contract says.
Standard contractual cancellation right:
Free cancellation window: Most contracts (and many state laws) provide a free cancellation period at the start of coverage - typically 30 days from the effective date. Cancel within this window and you get a full refund with no cancellation fee.
If you paid annually upfront and cancel mid-year:
Basic calculation:
If you pay monthly, cancellation stops future billing. You don’t get a refund of past months paid.
Some home warranty companies - including American Home Shield, Choice Home Warranty, HWA, and Cinch - deduct the value of claims paid during the contract term from your cancellation refund.
Example:
This isn’t hidden - it’s in the contract. But most consumers don’t read this provision before cancelling after a major claim.
Companies that more commonly do NOT deduct claims paid: Old Republic, Landmark, 2-10 HBW (verify current contract terms - these can change).
Companies that commonly DO deduct claims paid: AHS, Choice HW, HWA, Cinch (verify current contract terms).
Always read the cancellation section of your contract before cancelling after a major claim.
Many states impose minimum refund requirements for service contracts that companies cannot override:
Common state minimums:
California - Service Contract Act imposes specific refund rights; companies must process refunds within 30 days.
Texas - TREC regulations include refund requirements for residential service companies.
Florida - Florida law requires specific refund rights for service contracts.
New York - NY law provides consumer protections on service contract cancellation.
If a company refuses to provide a refund you’re legally entitled to under state law, that’s a state regulatory complaint and potentially a small claims court matter.
Companies can cancel policies too - typically for:
Your rights when the company cancels:
If a company cancels your policy without proper notice or after a major claim - suggesting retaliation for the claim - this is a serious regulatory complaint matter.
If you believe the company cancelled your policy improperly (mid-term, without adequate notice, in retaliation for a claim), you may have:
Document the cancellation notice date, the reason given, and the timing relative to any pending claims.
1. Check your claims status. If you’ve filed a major claim that was approved or is pending, understand how the claims deduction affects your refund math before cancelling.
2. Cancel in writing. Email or certified mail creates a paper trail. Note the date.
3. Request written confirmation. Ask for written confirmation of cancellation and the refund amount calculation.
4. Check the free window. If you’re within 30 days of purchase, cancel now for a full refund.
5. Time it relative to renewal. Cancelling 60 days before renewal avoids auto-renewal and doesn’t require fighting for a mid-term refund. The cleanest cancellation is before the new term starts.
6. Track the refund. Refunds typically take 30-45 days. If it doesn’t arrive, follow up in writing and escalate to a state complaint if necessary.