90-warranty widgets

I have seen and read a lot of discussion on the topic but am still not clear on a few things. Can someone with inside/in-depth knowledge comment on the following:

  1. if the client is made aware via PIA that their information will be submitted to the warranty companies… and chooses not to opt-out during the signing of the PIA: Why is it detrimental to the client if they are not charged anything extra for the “warranties”? specifically, how is their information then used/abused by the warranty company?
  2. Do the warranty companies honor legitimate claims? if not, how do they avoid legal repercussions and continue to stay in business?
  3. how/why is using the warranties detrimental to the home inspector? (besides having to pay a fee to the warranty company, if there is one)

Thank you!

  1. Read their Privacy Policy in-depth!

  2. Read the Contract between the Warranty Co and H.I. (and the client/end-user) in-depth!

  3. Reputation of the H.I. (ie. damage to it)!