Subject to the insurer's or home warranty association's requirement as to payment of premium, every home warranty must be mailed or delivered to the warranty holder no later than 45 days after the effectuation of coverage, and the application
is part of the warranty contract, per Section 634.312, Florida Statutes.
Home warranty contracts must disclose exclusions, restrictions, or limitations in boldface type per Section 634.312, Florida Statutes.
All home warranty contracts are assignable. Per Section 634.312, Florida Statutes, the contract must contain a statement informing the purchaser of their right to assign it, within 15 days from the date the home is sold or transferred, to the purchaser of the home. The
home warranty company may charge an assignment fee not to exceed $40. Home warranty assignments include, but are not limited to, the assignment from a home builder who purchased the home warranty to a subsequent home purchaser.
Effective July 1, 2011, each home warranty contract sold in Florida must include a written disclosure to the consumer that the rate charged for the contract is not subject to regulation by the Office of Insurance Regulation. The disclosure may be included
in the contract or in a separate written notice provided to the consumer at the time of sale. Also, effective the same date, the companies are no longer required to submit the forms they use for approval. (However, the Office of Insurance Regulation
still has the authority to order a company to stop using any contract that does not comply with Florida law per Section 634.3123, Florida Statutes.)
Effective on new and renewal contracts as of January 1, 2020 a Home Warranty sold in the state of Florida may not exclude coverage because of the presence of rust or corrosion unless the rust or corrosion was a contributing cause of the mechanical breakdown
or failure of a covered appliance, unit or system.
As per Section 634.346, Florida Statutes,
for contracts excluding wear and tear failure specific to an AC unit, the contract must offer additional coverage for an additional premium to cover the replacement of the otherwise functional components of the AC unit. If the consumer does not purchase
the additional coverage for the replacement of functional components of an AC system due to wear and tear, the contract must contain a statement in boldfaced type advising of such.