Texas Residential Service Company License Surety Bond

A Residential Service Company offers home warranty contracts to maintain, repair or replace all or any part of the appliances, structural components, electrical, plumbing, heating, or air conditioning systems of residential property. Any business actively engaged in the sale of Residential Service Contracts must be licensed as a Residential Service Company and post an initial surety bond in the amount of $25,000.  Bond amounts are subject to adjustment after the company files their second report under section 1303.202 of the Residential Service Company Act

After the second report is filed and reviewed, the company must maintain security in one of the following minimum amounts based on the amount of claims paid in this state during the preceding calendar year:

Bond Amount Required       Amount of Claims Paid in Prior Year
$10,000 Bond       Less than $50,000
$25,000 Bond       $50,000 - $200,000
$50,000 Bond       $200,000 - $500,000
$100,000 Bond       Greater than $500,000

 

 

 

 

Whether you are looking for the initial $25,000 Residential Service Company Bond or you are just looking for a better rate for your current renewal, let our staff secure you the best possible rate for your company. Get started now!  Follow the link below to apply for your Texas Residential Service Company License Surety Bond.