Contract Review Checklist
12 Points Before You Sign
Run this checklist against any home warranty contract before you sign. If a company will not give you the contract before purchase, that itself is your answer.
Home Warranty Contract Checklist - 2026
Company: __________________________ | Date: __________________________
Request the contract before purchase - not after.
Reputable companies will send the full contract on request. If a company refuses or says you can only see it after paying, treat that as a red flag and move to your next option.
What to confirm
Specific dollar amount per unit (not vague language). Whether the cap is per-unit or combined across all HVAC systems.
Red flag
"Comprehensive coverage" with no specific dollar cap stated.
What to confirm
Whether refrigerant/Freon is covered and at what sub-cap (or excluded entirely).
Red flag
Silent on refrigerant - means excluded. If your system uses R-22 and refrigerant is not covered, any leak = major uncovered cost.
What to confirm
Whether "pre-existing" means known to you OR unknown to you. "Known or unknown" is the broadest exclusion - it means anything that existed before coverage started is potentially excludable.
Better language to look for
"Known to the consumer" standard (similar to California standard) - requires you actually knew about the defect.
What to confirm
Exact maintenance requirements for each covered system. What documentation they expect you to keep.
Red flag
Vague requirements ("properly maintained") without specifics - gives the company flexibility to deny based on maintenance.
What to confirm
Per-visit or per-claim? The dollar amount. Whether fee applies even if claim is denied.
Red flag
Service fee "per-visit" rather than "per-claim" - means multiple service fees for multi-visit repairs.
What to confirm
How long before coverage is active (typically 30 days). Whether it is waived for real estate transactions.
Red flag
Waiting period longer than 30 days for standard coverage.
What to confirm
Sub-caps on refrigerant, ductwork, code upgrades, permit fees, roof leak, secondary systems.
Red flag
No schedule of sub-caps (means you do not know what you are actually covered for on specific components).
What to confirm
Whether you must use the company's network or can bring your own contractor. If network: what happens if no network contractor is available in your area.
Red flag
No emergency provision for contractor unavailability.
What to confirm
How to file a claim (phone, online, app). Hours. Stated response time for technician dispatch. Emergency HVAC provision (response time for heating/cooling failure).
Red flag
No stated response time; no emergency HVAC provision in the contract.
What to confirm
Arbitration required or optional. Which arbitration service (AAA, JAMS, or NAM). Who pays filing fees. Whether you waive class action rights.
Red flag
Mandatory NAM arbitration with consumer paying filing fees - NAM is least consumer-favorable of the major arbitration services.
What to confirm
Free-look period (should be 30 days for full refund). Pro-rated refund formula after free-look. Whether the company can cancel you and on what grounds.
Red flag
Company can cancel after high-claims years with short notice; or no free-look period.
What to confirm
Whether coverage applies to your specific address (some companies have state limitations). Whether coverage transfers to a new buyer if you sell.
Red flag
No transfer provision - coverage does not add value to the home at sale.
Summary: Pass / Fail
| Checkpoint | Pass | Fail | Notes |
|---|---|---|---|
| HVAC cap stated and adequate | |||
| Refrigerant covered | |||
| Pre-existing definition acceptable | |||
| Maintenance requirements clear | |||
| Service fee structure clear | |||
| Waiting period reasonable | |||
| Sub-caps schedule provided | |||
| Contractor provision adequate | |||
| Claims process and response time stated | |||
| Dispute resolution acceptable | |||
| Cancellation terms fair | |||
| Coverage territory confirmed |
Rule of thumb: If more than 2 items fail, look at the next company on your list. A single critical fail (HVAC cap, pre-existing definition, mandatory NAM arbitration) may also be disqualifying on its own.