Home warranties exist to allow the purchaser to have a policy against the costs of replacement or repair of a defective home item.
Such warranties and services may cover air conditioners, dishwashers, washer and dryers, water heaters, and many other types of home appliances.
In Florida, a home warranty company is regulated by Section 634.03 of the Florida state’s Statutes.
The Department which regulates home warranty and service companies is the Florida Division of Consumer Service.
A surety bond is required of home warranty companies. The Department is the obligee for this surety bond.
If you are an operator of a home warranty company, the state of Florida requires you to maintain a surety bond in one of two amounts.
The value of both securities required at all times must be $100,000, as per Section 634.305 of the state’s statutes.
The required home warranty bond exists to protect the consumer – your customers --- from any acts of fraud, willful misconduct, theft, or illegal misrepresentation committed in the performance of your duties.
Such bond coverage of misconduct extends not only to the purchaser of this bond, but any officers, managers, and employees of the home warranty company.
Of note is that as a surety bond, this bond does not protect your home warranty company in the slightest.
The bond satisfies the state’s licensing requirement but is strictly for the benefit of any harmed customers.
The following will determine how much you’ll pay for the surety bond:
If you have good credit, you will pay a small percentage of the bond’s amount.
That amount may be as little as 2%.
Your home warranty surety bond is issued for one year and renews on an annual basis.
At that time, a new premium payment will be required and a new home warranty bond will be issued for filing with the Department.
AmeriPro Surety Bonds will mail you notice well ahead of time reminding you of the bond’s renewal.
We will also work on your behalf to get you the best renewal pricing for your home warranty bond.
The application process with AmeriPro Surety Bonds is easy and, in many cases, can be completed right over the phone.
For larger bonds, sometimes additional information may be requested that requires gathering documents on your part.
Still, the bond can be issued within a business day or two, and sometimes within several hours.
Our agency, AmeriPro Surety Bonds, is a surety bonds-only company. We focus on one thing: surety bonds. We provide license and permit, contractor, court, and fiduciary bonds throughout Florida.
We also provide surety bonds nationwide.