Service Contract Providers

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Program News and Updates

Notice of Intent to Review Rules

September 16, 2022

The Texas Department of Licensing and Regulation (Department) is reviewing the Service Contract Providers and Administrators program rules located at Title 16, Texas Administrative Code, Chapter 77 for re-adoption, revision, or repeal. This rule review is required every four years.

The Notice of Intent to Review was published in the Texas Register on September 2, 2022 (47 TexReg 5344), as part of a combined notice with several other rule chapters undergoing simultaneous review. The Department will determine whether the reasons for adopting or readopting these rules continue to exist by answering the following questions for each rule:

Is it obsolete?
Does it reflect current legal and policy considerations?
Is it in alignment with the current procedures of the Department?

The Department encourages anyone interested in the Service Contract Providers and Administrators program under Chapter 77 to review the Notice of Intent to Review online and the current chapter rules posted on the Department’s website.

Comments may be submitted electronically on the Department’s website at https://ga.tdlr.texas.gov:1443/form/gcerules (select the appropriate chapter name for your comment).

Comments received prior to October 17, 2022, may be considered by the Department.

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