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Home Warranties

After you buy a new or existing home you may have unexpected repairs that can be expensive. Your builder or sales agent may suggest that you buy a home warranty to cover any unexpected repairs.

A home warranty may be useful, but before you make a decision consider these tips:

  • Make sure you understand exactly what would and would not be covered under the home warranty. Many home warranties define “Major Structural Defects” differently than you’d expect.
  • Find out exactly what you must do before the home warranty company will pay for a repair. Many contracts state that they will replace your equipment, but only with a specific brand or will cover the work only if you use the company’s contractor.
  • If you are working with a small contractor who offers his or her own warranty, you may be able to negotiate more favorable terms.
  • Before you sign or accept a home warranty contract, have your attorney review it carefully.
  • Never let the offer of a home warranty stop you from having the house and its appliances thoroughly checked out by a licensed home inspector.
  • Home warranty contracts often require you to use the company’s private arbitration process to settle disputes. That means you give up your right to take the company to court. If your home turns out to have serious defects, you might have a better chance to get money back without a home warranty.

We Can Help

If you have a complaint about home warranties contact us for help or call toll free within North Carolina at 1-877-5-NO-SCAM.