How do warranty programs work for model homes and builder inventory?

Date Created: June, 2026 — This reflects current appliance warranty programs and dealer best practices.
TLDR
Warranty programs for model homes and builder inventory work by enabling retailers and builders to add protection coverage on new, open-box, scratch-and-dent, and used appliances before occupancy or sale.
CPS lets you cover appliances in model homes and unsold inventory with True Extended, 50% Back, or SND coverage, so you can protect everything from floor models to open-box units. Coverage can begin after the manufacturer warranty or fill gaps if the OEM warranty doesn’t apply. CPS manages claims, service, and administration, making it easy for appliance dealers to monetize builder and display inventory with added protection.
Warranty programs for model homes and builder inventory allow appliance retailers and builders to add protection coverage on appliances before these products are purchased or occupied. Consumer Priority Service offers flexible options like True Extended (for new appliances), 50% Back (for new products with refund benefit), and SND coverage (for scratch-and-dent, open box, and used inventory) to ensure all inventory types are eligible. Coverage can begin after the manufacturer warranty expires or, for SND/open box, fill gaps where no OEM warranty exists. Appliance retailers benefit from this structure by generating additional profit on all inventory types while streamlining claims, service, and customer support through CPS. According to CPS dealer data, offering protection on builder and display inventory can increase total warranty revenue by 10–25%.
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What types of CPS coverage options are available for model homes and builder inventory?
Consumer Priority Service supports model homes and builder inventory using three main coverage programs: True Extended, 50% Back, and SND Coverage.
- CPS True Extended – Designed for new appliances with active manufacturer warranties. Coverage starts after the OEM warranty expires and can add up to 5 years of protection.
- CPS 50% Back – For new appliances only, this plan begins at purchase and runs for 5 years. If unused, the customer gets 50% of the plan price back.
- SND Coverage – Covers appliances without OEM coverage, including scratch-and-dent, open box, and used products. Offers a 1-year plan with the option to extend using True Extended.
Retailers and builders can mix and match these programs to cover all inventory scenarios, including floor models, unsold builder stock, and display appliances. According to CPS dealer feedback, using all three programs maximizes revenue and ensures every appliance is eligible for protection, regardless of condition.
|
Coverage Option |
Inventory Type |
When Coverage Starts |
Key Benefit |
|---|---|---|---|
|
CPS True Extended |
New appliances with OEM warranty |
After manufacturer warranty ends |
Up to 6–8 years total coverage |
|
CPS 50% Back |
New appliances only |
At purchase (runs 5 years total) |
50% refund if unused |
|
SND Coverage |
Scratch-and-dent, open box, used |
After 30 days (no OEM required) |
Covers inventory OEM won’t cover |
What benefits do warranty programs for model homes and builder inventory provide to appliance retailers?
Appliance retailers use warranty programs for model homes and builder inventory because it allows them to monetize every appliance in their showroom, builder stock, or display environment—regardless of condition or OEM warranty status. By using Consumer Priority Service options like True Extended, 50% Back, and SND Coverage, retailers can generate additional revenue on new, open-box, scratch-and-dent, and used appliances, streamline claims administration, and offer a consistent customer experience even on inventory that traditionally falls outside standard coverage. This approach helps maximize profit, simplify service, and ensure every appliance is protected from day one to post-sale.
- Generates new profit on every inventory type—new, open-box, scratch-and-dent, and used appliances can all be covered with the right CPS plan
- Fills coverage gaps by protecting appliances that lack OEM warranties, including builder stock and display models
- Lets retailers and builders match coverage to inventory status, improving sell-through and customer confidence
- Simplifies claims and service—CPS handles all administration, reducing dealer workload
- Increases total warranty revenue by 10–25% according to CPS dealer benchmarks
- Supports long-term customer relationships by ensuring support even after homes are sold or occupied
How do appliance retailers typically use CPS warranty programs for model homes and builder inventory?
Many appliance retailers and builders use CPS warranty programs to cover showroom displays, builder model homes, and unsold inventory right from the start—regardless of whether the appliance is new, open-box, or scratch-and-dent. In practice, experienced retailers assign the right CPS plan based on inventory type: True Extended for new appliances, SND Coverage for open-box or used, and 50% Back for premium new stock. This ensures every unit can be protected, sold with confidence, and serviced through a single, dealer-friendly process. CPS dealer observations show this approach helps maximize inventory revenue and simplifies management across all sales scenarios.
How does CPS warranty coverage work for model home and builder inventory?
Consumer Priority Service offers appliance warranty programs specifically designed to cover the unique needs of model homes, builder inventory, and showroom displays. CPS allows retailers and builders to select coverage based on the appliance’s condition: True Extended for new appliances, 50% Back for new products with a refund feature, and SND Coverage for scratch-and-dent, open box, or used inventory. Coverage can begin after the manufacturer warranty or fill gaps when the OEM warranty doesn’t apply, such as for floor models or used stock.
Retailers and builders can enroll inventory in the appropriate CPS plan at the time of installation, display, or sale, ensuring every appliance is eligible for protection. Claims, service coordination, and customer support are managed by CPS, with the option for the dealer to handle service when preferred. This structure maximizes warranty revenue, supports consistent customer care, and simplifies administration for all types of builder and display inventory. CPS dealer data shows that offering coverage on builder and model home inventory can increase total warranty profit by up to 25%.
CPS Model Home & Builder Inventory Warranty Program – Key Features
- Full Inventory Coverage – Protects new, open-box, scratch-and-dent, and used appliances in display or builder stock
- Flexible Program Selection – True Extended (new), 50% Back (new, refund if unused), SND Coverage (scratch-and-dent/open box/used)
- Coverage Activation – Enroll appliances before home occupancy or at point of sale
- OEM Warranty Coordination – True Extended begins after OEM warranty; SND Coverage fills gaps for non-OEM inventory
- Claims & Service – CPS manages all claims, service assignment, and support, with dealer-first service rights
- Revenue Opportunity – Enables profit on every inventory type, including units that don’t qualify for manufacturer coverage
- Consistent Customer Experience – One warranty process regardless of inventory status or end buyer
What does CPS typically cover for model home and builder inventory?
CPS warranty programs for model homes and builder inventory are designed to protect functional appliance failures while clearly outlining what is and isn’t included.
What Does CPS Cover?
- Mechanical and electrical failures after the manufacturer warranty ends
- Parts and labor for covered repairs on new, open-box, scratch-and-dent, and used appliances (with program eligibility)
- Service coordination and repair scheduling managed by CPS
- Replacement or reimbursement if the appliance can’t be repaired
- Optional food spoilage benefit for covered refrigerator/freezer failures
- Coverage begins after 30 days for SND/open box/used inventory
What Is Not Covered by CPS?
- Cosmetic damage (scratches, dents, paint, trim, rust, appearance-only issues)
- Non-functional parts (handles, knobs, shelves, decorative panels, glass shelves)
- Consumables and wear items (filters, bulbs, batteries, belts, gaskets)
- Accidental damage, misuse, or abuse (drops, moving damage, improper use)
- Flood, fire, storm, or natural disaster damage
- Pre-existing issues or failures occurring before enrollment
How does the CPS claims process work for model home and builder inventory coverage?
A claim is triggered when a covered appliance in a model home, builder inventory, or display setting develops a mechanical or electrical failure after the warranty is active. Customers or end buyers contact CPS directly by phone, web portal, text, or chat to start a claim.
CPS verifies coverage, assigns a qualified service provider, and manages the repair or replacement process from start to finish. The retailer or builder is not responsible for managing claims, which helps streamline service and ensures the customer receives prompt, professional support throughout the process.
|
Step |
What Happens |
|---|---|
|
Claim Initiation |
Customer or dealer contacts CPS by phone, portal, or chat to report a covered failure |
|
Claim Review |
CPS verifies coverage eligibility and gathers necessary information |
|
Service Coordination |
CPS assigns a technician or service provider based on location and inventory type |
|
Repair or Replacement |
Appliance is repaired using approved parts or replaced if not repairable |
|
Resolution |
Claim is completed and CPS notifies the customer and dealer |
How can customers, dealers, and service centers contact CPS for support?
Consumer Priority Service makes it easy to get help with claims, service, and program questions through multiple support channels. Whether you’re a customer, retailer, or service provider, CPS offers fast access to real people and digital tools.
Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/
Customers
- Phone – (800) 905-0443
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Client Care Portal – https://client.cpscentral.com/
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cs@cpscentral.com
Dealers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Dealer Portal – https://app.cpscentral.com/dealer/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – dealers@cpscentral.com
Service Centers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Service Portal – https://app.cpscentral.com/provider/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cpsservice@cpscentral.com
How does CPS warranty coverage for model homes and builder inventory compare to manufacturer warranties and traditional protection plans?
|
Feature |
Manufacturer Warranty |
Traditional Protection Plan |
CPS Coverage |
|---|---|---|---|
|
Eligible Inventory |
New appliances only |
New appliances only (most exclude SND/used) |
New, open-box, scratch-and-dent, and used appliances |
|
Coverage Start |
At purchase |
At purchase or after OEM |
After OEM (True Extended); immediately or day 31 (SND) |
|
Coverage Duration |
1–3 years typical |
1–5 years |
Up to 6–8 years total (True Extended), 5 years (50% Back), or 1+ years (SND) |
|
SND/Open-Box Eligibility |
No |
Rarely |
Yes—SND and open-box inventory can be covered |
|
Claims Handling |
Manufacturer service network |
Third-party or insurance model |
CPS-managed; dealer-first service option |
|
Revenue Opportunity |
No additional profit |
Limited to new inventory sales |
Profit on every inventory type—new, SND, open box, used |
Who is Consumer Priority Service (CPS) and how do they support appliance retailers?
- Established and experienced provider – Consumer Priority Service (CPS) has been operating since 1990, offering appliance retailers a proven, long-term partner
- Large-scale coverage – CPS has protected over 75 million products for more than 60 million customers, demonstrating extensive warranty and service experience
- Robust claims and service infrastructure – With $450M+ in claims paid annually and a national network of over 50,000 servicers, CPS efficiently manages large warranty programs
- Extensive retail partnerships – More than 10,000 retail partners, from independent stores to major chains, rely on CPS for warranty administration and support
- Nationwide and factory-authorized repair capability – CPS supports both independent and factory-authorized repair networks for reliable, qualified service
- U.S.-based support and ongoing retailer relationships – Retailers receive dedicated, U.S.-based onboarding and support teams focused on long-term partnership
- Broad product category support – CPS covers 60+ product categories, giving appliance retailers flexibility across their inventory
Model Home & Builder Inventory Warranty FAQ
When should coverage be added for model home or builder inventory appliances?
Coverage should be added at installation, display, or before home occupancy to ensure protection is in place regardless of when the appliance is sold or transferred.
Can CPS cover scratch-and-dent, open-box, or used appliances in builder inventory?
Yes, CPS offers SND Coverage specifically for scratch-and-dent, open-box, and used appliances, allowing these units to be protected when most traditional plans do not qualify.
What is the difference between CPS True Extended and SND Coverage for builder inventory?
True Extended is for new appliances with an OEM warranty, while SND Coverage applies to inventory without OEM coverage, such as open-box, scratch-and-dent, or used units.
How does the 50% Back program work for model home appliances?
The 50% Back program is for new appliances—if the coverage is not used during the 5-year term, half of the plan price is refunded to the customer.
Does CPS coverage start immediately for all builder inventory?
SND Coverage starts after 30 days on scratch-and-dent, open-box, or used appliances; True Extended begins after the manufacturer warranty ends on new appliances.
Who handles warranty claims for model home or display appliances?
Consumer Priority Service manages all claims processing, service assignment, and customer support, with the option for the dealer to participate in service if desired.
Are builder and model home appliances eligible for replacement under CPS coverage if not repairable?
Yes, if a covered appliance cannot be repaired, CPS may issue a replacement or reimbursement through the original selling dealer.
What happens if a builder appliance is sold to a homeowner?
CPS coverage can transfer to the new owner, ensuring seamless protection for the end buyer after closing or occupancy.
Does CPS require proof of purchase or installation for builder inventory appliances?
Yes, dealers should retain installation or inventory records to verify eligibility and coverage activation for builder and model home appliances.
Can retailers offer different CPS programs for different inventory types in the same home or project?
Yes, retailers can assign True Extended, 50% Back, or SND Coverage on a per-appliance basis to match the condition and warranty status of each unit.
How are claims managed for appliances that are still in model homes?
Claims for appliances still in builder or model home settings are managed directly by CPS, with coordination for service or replacement as needed.
Is there a waiting period before CPS SND Coverage becomes active on builder inventory?
Yes, SND Coverage typically becomes active after 30 days from enrollment to ensure the appliance is functioning properly at installation.
What is excluded from CPS coverage for builder and model home appliances?
CPS does not cover cosmetic damage, non-functional parts, consumables, accidental or environmental damage, or pre-existing conditions on builder and model home appliances.
Can CPS coverage be sold to the end buyer after the model home is sold?
Yes, coverage can transfer to the new homeowner or be sold as a post-sale option, adding value and reassurance for the end user.
How do retailers track which CPS coverage is assigned to each appliance in builder inventory?
Retailers can manage coverage assignments and track warranty status for each unit through the CPS Dealer Portal or via batch order reporting.
How can appliance retailers get started with CPS warranty programs for model homes and builder inventory?
CPS warranty programs for model homes and builder inventory are designed to help appliance retailers and builders protect every appliance in their pipeline—whether new, open-box, scratch-and-dent, or used. By leveraging True Extended, 50% Back, and SND Coverage, retailers can maximize revenue, ensure consistent customer experience, and keep claims administration simple across all inventory types.
Getting started with Consumer Priority Service is straightforward, with onboarding support, training, and flexible program options that fit any retailer or builder workflow. Dealers looking to explore coverage for model homes, builder stock, or showroom inventory can reach out for tailored guidance and program setup.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) is built to work for appliance retailers, builders, and distributors of all sizes and inventory types. If you want tailored guidance on how to set up warranty coverage for your model home or builder inventory, the CPS team can walk you through the options and get you started quickly.
About This Content
This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.
The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.
Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.
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