Legal information only, not legal advice.
What the FTC Says About Home Warranties
The FTC describes "home warranties" as service contracts that some people buy to help cover repair costs, and advises checking hidden costs, coverage limits and the company's reputation before you buy. It also warns that unsolicited calls about these contracts may come from telemarketers after your money or personal information: live and robocalls selling something are probably illegal if you have no connection to the company, and sellers often use pressure tactics such as saying your warranty is about to expire.
What the FTC Does Not Do
- It does not license home warranty companies. Licensing and registration, where they exist, are set by states.
- It does not review or approve contracts or review individual claim decisions.
- It uses the reports it receives to spot patterns and build cases; it does not resolve individual disputes. For service contract complaints, the FTC tells consumers to contact their state attorney general.
Where to File a Complaint
| Agency | Best for |
|---|---|
| State attorney general | Complaints about a service contract company; the FTC itself points consumers here for service contract complaints |
| State insurance department | Claim denials, cancellation and refund disputes, and licensing questions, in states that regulate home warranties |
| FTC (ReportFraud.ftc.gov) | Scams, deceptive marketing and unwanted sales calls |
| Do Not Call Registry (DoNotCall.gov) | Reporting illegal sales calls and robocalls |
| Better Business Bureau | A public record of the complaint; sometimes a voluntary resolution |
Filing with more than one is reasonable when the situation warrants it: each keeps its own record. For what to do after a denied claim, see how to fight a denial.
If a Call or Mailer Pressures You
The FTC's advice for unwanted calls is to hang up rather than press numbers, because pressing a number to speak to someone or be removed from a list will probably lead to more robocalls, and caller ID cannot be trusted. Report illegal calls at DoNotCall.gov and scams at ReportFraud.ftc.gov.