The FTC says a typical home warranty plan pays to repair or replace what?
Appliances and systems, like an AC unit.
- Appliances and systems like air conditioning ✔
- Storm and fire damage to the house
- Your monthly mortgage payments
Why: A home warranty is really a service contract for things like appliances or an air conditioning system. It is different from homeowners insurance, which is for damage such as fire. Read the limits and exclusions.
Huh, didn't know that: The FTC suggests asking about reimbursement limits, deductibles or fees, accidental damage, and cancellation costs before you buy.
How many telemarketers does it take to change a light bulb? Only one, but he has to do it while you are eating dinner.
References
Answer: Appliances and systems like air conditioning. A home warranty is really a service contract for things like appliances or an air conditioning system. It is different from homeowners insurance, which is for damage such as fire. Read the limits and exclusions.
- FTC Consumer Alert: So what's the deal with home warranties? consumer.ftc.gov/consumer-alerts/2023/02/so-whats-deal-home-warranties
home warranties typically cover replacements and repairs for things like appliances or air conditioning systems
Checked 2026-10-10.
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