Florida Home or Service Warranty Association Bond

Florida Home or Service Warranty Bond

In Florida, businesses offering home or service warranties may need to file a Home or Service Warranty Association Surety Bond with the Office of Insurance Regulation. This bond is used to make sure that when going and is out of business, the association will complete its obligations to its members or subscribers.

QUOTE

Buying your Home/Service Warranty Association Bond with Jet Insurance Company keeps the bond process down to the basics; as the direct insurance company, Jet got rid of middlemen or brokers that would play a game of telephone between you and the surety company or raise your bond costs to pay for their commissions.

What Is the Price for the Home Service Warranty Association Bond?

The cost of this surety bond is just a fraction of the required bond limit. For home service warranty associations, the limit is set at $75,000, so Jet can offer the bond as low as $750 a year or $75 a month. A service warranty association would need a bond with a limit of $50,000 or more, based on the qualifications listed in Section 634.405 of the Florida Statutes. Rates would need to be approved through Jet's underwriting standards.

Bond LimitMonthlyAnnual
$50,000$50$500
$75,000$75$750
$100,000$100$1,000
FL Home/Service Warranty Bond Rates

Due to the large bond amounts required, Jet cannot offer the bond automatically online. Following the initial application our underwriter will review and may require additional information, such as financial statements to approve a quote.

What Is the Purpose of the Home Service Warranty Association Bond?

The Florida Office of Insurance Regulation (OIR) requires warranty associations to hold securities (such as a direct deposit)  so that if the association goes bankrupt or insolvent, the subscribers or members will not be left out of luck with the warranty association out of business. If the warranty association doesn’t pay for losses or unearned premiums after going out of business, the subscribers can be refunded by the bond or securities. 

The bond itself is accepted as an alternative to other securities requirements that warranty associations are bound to file with the OIR. However, the bond must meet the following standards:

Home Warranty Associations

Service Warranty Associations

The limit for service warranty associations can start at $50,000 to upwards of $100,000, based on whether the association is a warrantor or warranty seller and the amount of gross written premiums (see Section 634.405 for detailed information). Higher bond limits may be required by the Office of Insurance Regulation.

How to Apply for the Warranty Association Bond With Jet

When you click the “Quote” button above, you will be walked through Jet’s simple, online application, adding in the basic information needed for the bond form. This will require submitting a social security number for a soft credit check. Once your application is submitted, it will be reviewed by a Jet underwriter, who may request additional information if need be, like personal and financial statements. 

Once approved, you will receive an email with your approved Warranty Association Bond quote; just click the link to pay for your bond. An email with an electronic copy and a receipt will be sent as confirmation of your purchase.

Can Jet File the Bond for Me?

After your purchase has been processed, Jet will go ahead and fill out the bond form and send it over to you. The original Home/Service Warranty Association Bond must be signed by both the president and secretary in the presence of a witness. Once complete, you will have to attach the bond with the license application and submit a PDF version of the completed bond at the following website: https://www.floir.com/iportal or contact the OIR at the address below: 

Department of Financial Services
Office of Insurance Regulation
200 East Gaines St
Tallahassee, FL 32399

Read More About Renewing and Cancelling Your Bond

How to Renew My Bond

See Jet’s renewal process for bonds, including the Home Warranty Bond.

How to Cancel My Bond

Read about canceling your bond with Jet Insurance Company at any time.

How Does a Warranty Association Avoid Bond Claims?

This bond is very clear cut in its terms: if the warranty association goes insolvent and doesn’t pay its members/subscribers for losses or return unearned premiums, any member or subscriber that didn’t receive their due payment can seek reimbursement from the bond. So in short, to avoid claims, you should make sure to run a profitable business (name a sensible person whose goal isn’t to be successful) and fulfill any obligations to your clients if your business is over.

What Happens if I Get a Home/Service Warranty Association Bond Claim?

If a warranty association ends up closing up shop because of bankruptcy, insolvency, or dissolution and fails to compensate members or subscribers for the unused coverage, the members/subscribers will file a claim on the bond. Jet will take a look at any evidence available to check the validity of the claim — and if there’s any way to remedy the situation, this is the last chance to settle the issue. 

If the claim holds up, Jet must pay the injured members/subscribers out of the Home/Service Warranty Association Bond. But, the warranty association at fault is still liable for their actions and will be required to pay Jet back as indemnified to do so at the outset of the bond purchase.

What Kind of Securities Would a Home/Service Warranty Association Be Able to Submit With the OIR?

The Office of Insurance Regulation will accept securities for deposit, with some examples being: 

The full list (and subsequent criteria) can be found in Section 625.52 of the Florida Statutes. 

Home or Service Warranty Bond Form Example

Florida Home or Service Warranty Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: