Oversight of the Residential Service Companies (Home Warranties) (RSC) program was transferred to TDLR from the Texas Real Estate Commission (TREC) on September 1, 2021.
Residential Service Companies are licensed to provide consumers with contracts also known as Home Warranties.
Residential service contracts cover the cost of replacing or repairing damage to large home appliances or residential electrical, plumbing, heating, cooling or air conditioning systems caused by a power surge, a defect in materials or workmanship, or damage caused by normal wear.
These contracts are typically, although not always, offered when you purchase a home, and should not be confused with warranties provided by builders to cover any issues related to the construction of the home. Texas consumers should always check to see if the Residential Service Company they are considering is licensed by TDLR and review contracts carefully before choosing one.
Itโs important to note that you are not required to purchase a residential service contract when you purchase a home.
Questions you should ask when choosing a residential service company include:
- How much will the plan cost?
- How long does the plan last?
- What specific items does the residential service contract cover?
- Are there any limits to the coverage? Are there incidents that would not be covered?
- Is there a limit to how much the company will pay?
- Would a pre-existing condition void coverage?
- Is there a fee for service calls?
- Who will decide what company will make any repairs?
- How fast will any repairs be made?
- Will the plan replace an item that canโt be repaired?