Home Warranty

Home Warranty - Definition

A home warranty is a contract or agreement between the homeowner and the issuing company. It protects the homeowner against the cost of repair or replacement, or actually furnishes repair or replacement, of any structural component or appliance of a home, caused by normal wear and tear or a defect of a structural component or appliance.

A home warranty contract or agreement can be written by a Home Warranty Association who is licensed pursuant to Section 634.303, Florida Statutes, or by an authorized insurance company who is authorized to write this line of business.

Florida Law does not prohibit the giving of usual performance guarantees by either the builder of a home or the manufacturer or seller of an appliance, as long as no identifiable charge is made for such guarantee.

Home warranty contracts must disclose exclusions, restrictions, or limitations in boldface type, and must contain, a statement on the front page of the contract, pursuant to Section 634.312, Florida Statutes. Reference: Florida Statute 634.301