Iowans can purchase residential service contracts from a residential service contract company to maintain, repair or replace structural components, appliances or electrical, plumbing, heating, cooling or air-conditioning systems in residential properties containing not more than four dwelling units. The residential service contract company is obligated to arrange for the performance of services and must be licensed with the Iowa Insurance Division, so double-check before purchasing a residential service contract.
You may be responsible for additional costs for expenses related to a repair or replacement, as the contract may not cover the complete costs of the repairs or replacement. Warranties purchased in a retail environment are not regulated by the Iowa Insurance Division.