Had a bad experience with your home warranty? Tell the FTC: ReportFraud.ftc.gov

When big things in your home break — like your dishwasher or air conditioning system — they can cost lots of money to fix. Some people buy “home warranties (which are really service contracts) to help cover these costs. But what exactly is a so-called home warranty?

There are different types and options depending on the company and amount you pay, but home warranties typically cover replacements and repairs for things like appliances or air conditioning systems. They last for a set amount of time and — unlike builder warranties for new homes, or warranties included with some products — they cost extra.

And after looking at the details, you may find that a home warranty duplicates coverage you already have. Or covers only part of a product. Or makes it nearly impossible to get repairs done when you need them.

So here are some things to think about before committing to a home warranty:

  • Is it likely to save you money? Consider both the upfront cost and costs that may be hidden, like deductibles or fees you need to pay each time products are serviced.
  • What are the limitations? Are there limits on the amounts you can be reimbursed? Is accidental damage covered? Are certain appliances or systems not included? Are there restrictions or fees for cancellation?
  • Does the claims process seem difficult or slow? Waiting a long time to get paid back can reduce the value of having coverage.
  • Does the company have a good reputation? A home warranty is only as good as the company responsible for coverage. Search for the name of the company and words like “review” or “complaint” to see if people have had issues in the past.

Learn more: Extended Warranties and Service Contracts.

Getting unwanted calls about service contracts? Those might be telemarketers looking for your money or personal information.  

If you’ve had a bad experience with your home warranty, tell the FTC: ReportFraud.ftc.gov.


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Submitted by James Savage on March 3, 2023 | 2:56PM


Americas Preferred Home Warranty requires that you have tests done but then they won’t pay any of the costs. While this is stated how can they require them legally.
They also do not pay for the labor to install warrantied part that have to be replaced. I can find no where in their contractual brochure that states they don’t pay for this labor.

Submitted by Funewriter on March 3, 2023 | 3:16PM


This the 2nd contract I’ve had with Select Home Warranty. My 1st contract was for 2-years and used twice… once when my A/C crashed and once when the 2nd Refrigerator-Freezer in the garaged died (it was 15+ years old). On both appliances I only got a small ‘refund check’ that wouldn’t have covered the labor charges.

The 2nd contract is a ‘5-year extended agreement and has been used 3-times since I purchased it… once to replace a broken garbage disposal, once to replace a cylinder on a Moen Kitchen Faucet and once to finally replace the kitchen faucet.

In all three instances I used ‘their’ plumber and on all three the claims were originally denied… the Moen Faucet because it had a ‘lifetime’ warranty, the garbage disposal because they said ‘the plumber should have fixed it instead of replacing it, and Moen Faucet again because the cartridge was broken again, but couldn’t be removed.

The plumber replaced the first damaged part on the Moan Faucet (after I ordered it from Moan) and didn’t charge me for installing it, I purchased a replacement garbage disposal from Lowes and the plumber replaced it for free (I did have him replace 2-bathroom faucets and a Shower-Head at my expense).

I also bought a Commercial Kitchen Faucet to replace the Moan that he install without charge. I then made a demand on Select Home Warranty for reimbursement for the replacement. They refused! I then took to the Internet & Social Media (Facebook, Twitter, Yelp, Angie’s List, etc.) lambasting SHW for their ‘fraudulent business practices’!

Within three days, I received phone calls, txts & emails from SHW requesting I provide them a copy of my Commercial Faucet purchase, which I did. It took over three (3) weeks before the check arrive. I received no apology, sorry or ‘oops’ from them for denying my claim. However, I know now that the Internet & Social Media is the way to deal with Insurance Companies who balk at refusing a claim.

I also contacted both the State & Federal Legislatures, FTC, BBB, Business Licensing, and every other government agency I could hink of!