7 Best Home Warranty Companies In Houston, Texas

The TDLR oversees the Residential Service Company program, including Texas home warranty companies. The TLDR performs the following functions:

• Providing License: All home warranty companies operating in Texas must be licensed by the TDLR.
• Setting Minimum Standards: The TDLR establishes minimum standards for financial stability, claims handling, and business practices for home warranty companies.
• Complaints Resolution: Consumers can file complaints against home warranty companies with the TDLR, which will investigate and work to resolve the issue.

The Attorney General of Texas plays a crucial role in protecting home warranty customers through various means:

• Enforcement Of The Deceptive Trade Practices Act (DTPA): The DTPA prohibits any deceptive business practices, including those used by home warranty companies. The Attorney General can investigate and file lawsuits against companies engaging in practices like:
  • Misrepresenting Coverage: Exaggerating what the warranty covers, or failing to disclose exclusions.
  • Bait-And-Switch Tactics: Luring customers with low prices but offering limited coverage.
  • Unfair Claim Settlement Practices: Denying claims without justification or delaying repairs unnecessarily.
  • Unconscionable Contracts: Including unfair and one-sided terms that favor the company at the customer’s expense.
• Consumer Education and Complaints: The Attorney General’s office provides educational resources and tips for consumers on choosing and using home warranties. 
• Collaboration With Other Agencies: The Attorney General often works with agencies like the TDLR to investigate and address complaints against home warranty companies.

National and regional industry associations, like the National Home Service Contract Association (NHSCA), also regulate the home warranty industry. These associations have the following functions:

• Develop Ethics and Best Practices: The NHSCA and other associations develop ethical guidelines and best practices for home warranty companies to follow.
• Offer Educational Resources: These associations provide educational resources about home warranties for consumers.
• Conduct Research and Advocacy: Industry associations research the home warranty industry and advocate for policies that benefit consumers.