Service Contract Providers
A Service Contract Provider provides extended warranties to consumers for a specified period of time and for an additional cost beyond the price of the product.
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Program News and Updates
Proposed Rule Changes
February 14, 2022
The Texas Department of Licensing and Regulation proposes amendments to existing rules at 16 Texas Administrative Code, Chapter 77, §§77.10, 77.20, 77.22, 77.41, 77.42, and 77.70; and the proposed repeal of existing rules at §§77.92-77.110, regarding the Service Contract Providers and Administrators program. The proposed amendments reflect the addition of residential service contracts as a fourth type of service contract under Tex. Occ. Code, Chapter 1304, Service Contract Providers and Administrators. The addition of residential service contracts to this chapter occurred during the 87th regular Legislative session in House Bill 1560, §§4.01-4.13. House Bill 1560 repealed Tex. Occ. Code, Chapter 1303 and transferred regulatory oversight of residential service contracts from the Texas Real Estate Commission to the Texas Department of Licensing and Regulation effective September 1, 2021.
The proposed rules were published in the February 11, 2022, issue of the Texas Register (47 TexReg 624). The Department will accept comments on the proposal until March 14, 2022.
The Department encourages anyone interested in the Service Contract Providers and Administrators Program to review the rule proposal online at Proposed Rules Title 16 (state.tx.us). Comments may be submitted electronically on the Department’s website at https://ga.tdlr.texas.gov:1443/form/gcerules.
Residential Service Companies Summit - Video Now Available
December 15, 2021
TDLR held a Virtual Summit for Residential Service Companies (Home Warranties) on December 14, 2021. You can watch the summit on TDLR's YouTube channel.
Residential Service Companies (Home Warranties)
September 1, 2021
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.
It’s 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 can’t be repaired?
RSC Ombudsman Program
September 1, 2021
TDLR has an RSC Ombudsman to assist consumers with issues related to RSCs, including claim delays or denials, by providing an intermediary between the RSC and the consumer when the consumer needs assistance communicating with an RSC.
If you have any questions or concerns related to an RSC or your residential service contract, please contact the RSC Ombudsman at 512-936-3049.