There is an inherent conflict of interest in those companies and websites that advertise services and promote companies while also collecting monthly fees from the very companies they feature.
Unfortunately, this does not only happen within the home warranty industry.
The costs associated with the relationship and the companies' rankings, ratings and reviews is usually relative. Meaning, the more a company buys to be promoted, the higher their ranking appears to be.
Not only does this paint an inaccurate representation of how well a company is doing and how much their customers like them, but it feeds into bad companies getting more business from misinformed consumers. We say bad companies because usually the ones that are paying to be promoted that heavily have real reviews they are trying to water down.
It's important to know which companies are truly the best in the industries they serve.
How a Good, Unbiased Ranking System Works
A fair ranking system cannot be altered, but it can be weighted.
The ranking system we use, is automated through inputs by consumers. There is no human interference during the input stage, and only customers can influence the warranty providers' ratings on their site. This is important because these ratings later form the basis of evaluation for new and potential customers. It is designed to be unbiased and representative of the views of the consumers who have home warranties with the companies being reviewed.
This ranking function is built to try to ensure that home warranty companies actively take an effort to provide good service to their customers. Those who are doing well by their customers, rank higher, and those who are not, do not.
The weighted piece in the form of the following criteria. Companies' rankings are given weight for:
- Positive customer reviews, with more recent reviews get more weight
- Tenure in the industry
- Membership with the National Home Service Contract Association, a nonprofit trade organization that monitors the home warranty industry
- Online claims and other self-service features available on the company's website
- Effective use of social media to help consumers
- Participation in complaint resolution platforms such as the BBB, Yelp and our Complaint Resolution Program (CRP), which helps companies respond to complaints posted on our website
We does not charge viewers for the use of their website, nor does it charge home warranty companies to host a profile on their site. They are a wholly-owned subsidiary and have no ownership in any of the 80+ home warranty companies listed on their website. The candid reviews left on our website and the ratings platform they feature companies on is strictly meant to be informational to consumers.
The way we generates revenue is through the placement of relevant ad displays on their site, and through the quality of the consumer leads they pass along to the participating home warranty companies.
Why It's Important
It is important to have an authority in the industry to monitor, rate and compare home warranty companies – unbiasedly.
Educating consumers on home warranty companies and plans, and providing a comparison is the sole purpose of website. Similarly, providing a true ranking of those companies based on consumer experience is the sole purpose of company.
In an industry that is almost solely digital – meaning, there is not typically a physical office for these home warranty companies and sometimes live customer service representatives are not available to talk to – making it all the more important that home warranty customers get the proper guidance when it comes to selecting a reputable company.
What To Look For
If consumers find themselves on websites that show a ranking of home warranty companies, they should research how those companies received their ranking. If a clear description is not provided on their methodology, it's safe to assume there is not one – the companies being featured are most likely paying to be there.
It's not always about finding the cheapest home warranty, but about finding one from a reputable company – one you know you'll be able to get a hold of and who will be there if and when you need to file a claim.
To check the available home warranty companies in your area, enter in your zip code and search to compare home warranty quotes. And, be sure to review what other consumers are saying about the home warranty companies you are considering buying a home warranty plan from before you make a decision