What are home warranty companies?
Home warranty companies sell home warranties, often when a home is sold. The warranty acts somewhat like insurance so that if something major breaks down, the cost of repair or replacement is covered.
This can cover items such as the furnace, water heater, kitchen appliances, or roof.
The homeowner goes through the home warranty company to arrange for repair or replacement. Home warranty companies, in turn, contract with businesses to handle the calls.
Because these companies "arrange" for work, they must be licensed.
Licensing for home warranty companies
Unless they are already licensed as a standard contractor, these companies must obtain a license from the Construction Contractors Board to operate as a home services contractor. The requirements for the license are outlined on the endorsement chart. If you are a home warranty company and have questions, contact our licensing staff at 503-378-4621.
If you are contractor
- Make sure the home warranty company is licensed. If you accept work from
any unlicensed home warranty company, you could be breaking the law. Both the unlicensed company and you may be cited and fined.
- If permits are necessary to perform the work, make sure that you or the company obtain them. If you fail to do so, the Oregon Building Codes Division and, in some cases, the Construction Contractors Board may issue fines. Make sure you understand who is paying for the permits.
If you are a homeowner
If you have a home warranty with a licensed company, and you
believe the work was not performed correctly, you may file a complaint with
the Construction Contractors Board. The board cannot resolve disputes with
unlicensed companies.
If you spot an unlicensed home warranty company
Call the Construction Contractors Board (503-378-4621) to report any unlicensed company advertising for or performing home warranty work - including repairing or replacing systems and appliances under contract.
Licensed warranty companies have
a Construction Contractors Board (CCB) license number. We can verify that number
for you.
Provide us with copies of correspondence or paperwork
you receive from the company so we can help them comply with the law.