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Warranty

Any warranty offered by the contractor should be in writing. You should read it carefully. The warranty must state what rights it gives to you in clear language that you can understand.

If the warranty is valid for an extended period of time, verify that the contractor has made provisions to ensure that the warranty will be honored. If the contractor goes out of business, money needs to have been set aside to cover the cost of future warranty claims.

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Warranty trusts or insurance policies can take care of future needs. For warranty trusts, get the name of the trustee. Call the trustee, verify that the money can only be used for warranty claims, that the contractor cannot withdraw money for any reason, find out how much money has been deposited. For insurance policies, make sure that there is no continuing need to make premiums payments. After all, if the contractor stops making premium payments, the policy will expire, and your warranty with it.