Home Warranties, Service Line Warranties, or Extended Warranties

The BBB suggests that consumers who are interested in purchasing any of these warranties take certain cautionary steps before signing on the dotted line. 

Are you buying an "insurance" policy or is it a "service" policy?

Verify the warranty company's track record. Check with your BBB for a reliability report on the company. Find out whether it's a local or national firm and how long it's been in business.

Do some comparison shopping.

Consider the deductible.

Ask the company who will perform the repairs. Most warranty companies have their own network of service contractors. But some do allow you to hire a contractor of your choice. Be sure you understand the company policy before you buy the service.

Call the warranty company before you buy a policy. Ask questions, clarify coverage and most importantly, see how the customer service representatives treat you. If they don't respond promptly and courteously before you buy a policy, odds are they won't be very helpful after the sale.

Read the contract thoroughly. Make sure you fully understand what is or isn't covered.

How are the contractors selected and who verifies their licensing?

Who guarantees the work?

Is there a local address?

Does the agreement cover repairs resulting solely from the age of the item, or "damage" only? Are there any specific exclusions from coverage?

The information provided may assist you in determining if you need any of the services the company provides. As with any warranty, the BBB encourages you to read and understand what is covered under the terms of the contract before signing.