Florida Home or Service Warranty Association Bond Overview
- Purpose: To protect consumers if home or service warranty providers break contracts
- Who Needs It: Home and service warranty associations in Florida
- Regulating Body: The Florida Office of Insurance Regulation
- Bond Amount: $75,000 or $100,000
- Minimum Price: 2% of the bond coverage amount
What Is a Florida Home or Service Warranty Association Bond?
Florida home or service warranty association bonds protect members or subscribers of warranties from financial loss. The bond guarantees that warranty associations fulfill contracts faithfully and lawfully.
Who Needs the Bond?
The Florida Office of Insurance Regulation (OIR) requires licensed home and service warranty associations to have a surety bond or security deposit.
A Florida warranty association is considered any corporation or organization other than an authorized issuer issuing home or service warranties. This includes warrantors and warranty sellers.
For example, if you issue home warranties, you cover select items in a home such as appliances. If you issue service warranties, it covers professional services like car maintenance.
Bond Coverage Requirements
In lieu of security deposit requirements, you can file a $75,000 or $100,000 bond. Security deposit requirements are outlined in Florida Statute 634.405.
Typically, you’ll need $100,000 surety bond coverage. However, if you deposit $25,000 of an eligible security with the state, you only need $75,000 bond coverage.
How Much Do Home or Service Warranty Association Bonds Cost in Florida?
Florida warranty association bond premiums require underwriting and are credit-based. Typically, qualified applicants pay the starting premium of just 2% of the coverage amount.
For example, you’ll likely pay $2,000 for a $100,000 warranty association bond. Get your free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Florida Warranty Association Bond Work?
When you get a Florida home or service warranty association bond, you enter a legal agreement between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | You, the licensed warranty association |
| 2) Obligee | The Florida Office of Insurance Regulation |
| 3) Surety | The issuing surety provider |
If you violate Chapter 634 of Florida Statutes, a claim can be filed on the bond. The surety will pay harmed parties and you must reimburse the surety later on.
How Do I Get My Bond?
Get your Florida warranty association bond by following these simple steps:
- Apply for a quote online.
- Pay the premium.
- File your bond with the OIR.
How Fast Can I Get My Bond?
You’ll get a free quote in one business day or less. However, the OIR requires your physical bond form to be filed.
So, we’ll mail your bond form to you based on your shipping option selected at checkout. We offer overnight, two-day and three-day shipping.
How Do I File My Bond?
Once you get your bond in the mail, file it with the OIR at the following address:
Florida Office of Insurance Regulation
200 East Gaines Street
Tallahassee, FL 32399
Can I Get Bonded With Bad Credit?
We approve 99% of applicants and most qualify for the lowest rate. However, if you’re worried about qualifying, read about our Bad Credit Options.
How Do I Renew My Bond?
Florida home and service warranty bonds expire annually. We’ll send renewal reminders starting 90 days before the expiration date.
How to Get a FL Home or Service Warranty Association License
Home and service warranty associations technically require different licenses. However, the application process is generally the same.
Complete your Florida warranty association license application through the IRFS. You’ll need to submit information and materials including, but not limited to, the following:
- $200 application fee*
- Background report with fingerprints
- Surety bond or security deposit
- Copy of Articles of Incorporation
- Certificate of Status from FL Secretary of State and state of domicile if applicable
- Copy of bylaws
- Service of Process Consent and Agreement Form
- Authorization Letter, if applicable
- Financial statements
- Clear plan of operations
- Financial projections
- List of proposed sales representatives
- Fictitious name filing, if applicable
- Management information and forms
See Application for License Service Warranty Association Checklist and Application for License Home Warranty Association Checklist for more details.
*Note: Fees and deposits can be mailed to this address:
Department of Financial Services
Bureau of Collateral Management
200 East Gaines Street
Tallahassee, FL 32399-0345
