Florida’s extended warranty law lives in Chapter 634 of the Florida Statutes, which divides these contracts into three categories — motor vehicle service agreements, home warranties, and service warranties on other consumer products — each with its own cancellation window, refund formula, and financial-backing rules. Your rights depend entirely on which of the three you bought, so the first job is figuring out which part of the statute applies to your contract.
Which Type of Warranty Do You Have
Chapter 634 is split into three parts, and they are not interchangeable:
- Part I covers motor vehicle service agreements — repair or replacement coverage for cars, trucks, and other motor vehicles beyond the manufacturer’s original warranty.
- Part II covers home warranty associations — coverage for home systems and appliances such as HVAC, plumbing, and electrical.
- Part III covers service warranty associations — coverage for other consumer products such as electronics and appliances sold outside a home warranty.
A company licensed to sell one type is not automatically authorized to sell the others, and the consumer protections attached to each contract are different. Before you read further about your rights, identify which part your contract falls under.
Your Cancellation and Refund Rights
Cancellation is where the three parts diverge most sharply. The free look periods, refund percentages, and provider cancellation grounds are all different.
Motor Vehicle Service Agreements: 60 Days
You can cancel a motor vehicle service agreement within 60 days of purchase and receive a full refund of 100 percent of the gross premium paid, minus any claims already paid on the agreement. The provider may charge an administrative fee of up to 5 percent of the gross premium.1Online Sunshine. Florida Statutes 634.121 – Forms, Required Procedures, Provisions
After 60 days, the provider can only cancel for limited reasons: material misrepresentation at the time of sale, failure to maintain the vehicle per the manufacturer’s instructions, odometer tampering, or nonpayment. If the provider cancels after 60 days, you get 100 percent of the unearned pro rata premium less claims paid. If you cancel after 60 days, the return is at least 90 percent of the unearned pro rata premium less claims paid.1Online Sunshine. Florida Statutes 634.121 – Forms, Required Procedures, Provisions
Home Warranties: 10 Days
The free look on a home warranty is shorter. You have 10 days to cancel for a full refund of 100 percent of the gross premium, minus claims paid, with the same 5 percent administrative fee cap. After 10 days, a cancellation by you returns 90 percent of the unearned pro rata premium less claims. If the association cancels for a reason other than fraud, you get 100 percent of the unearned pro rata premium less claims.2Florida Department of Financial Services. Home Warranty Overview
Service Warranties: No Set Free Look
Service warranty contracts under Part III must include a cancellation provision, but the statute does not establish a specific free look period. If you cancel, you receive at least 90 percent of the unearned pro rata premium, minus claims paid or the cost of repairs made on your behalf. If the association cancels, you receive 100 percent of the unearned pro rata premium less claims. Refunds may be issued by cash, check, store credit, or gift card, but you can request a check.3Online Sunshine. Florida Statutes 634.414 – Forms, Required Provisions
What the Contract Must Tell You
Florida law dictates specific provisions that must appear in every warranty contract. If yours is missing them, that’s a compliance problem you can raise.
For motor vehicle service agreements, the provider or salesperson must give you written notice before the sale that buying the agreement is not required to purchase or finance the vehicle. The contract must include a cancellation provision, clearly identify the licensed insurer or service agreement company by name, address, and Florida license number, and disclose any restrictions or limitations in bold type. If the provider intends to use remanufactured or used replacement parts, both the contract and all sales brochures must say so in bold type. Rental car provisions must also be prominently disclosed.1Online Sunshine. Florida Statutes 634.121 – Forms, Required Procedures, Provisions
Every motor vehicle service agreement must also include a written disclosure that the rate charged is not regulated by the Office of Insurance Regulation. The same is true for service warranties: Florida regulates the financial stability and conduct of providers but does not set or approve pricing.
Service warranty contracts must be delivered to you within 45 days of purchase, either by mail or electronic transmission. If you receive the contract electronically, you have the right to request a paper copy. Contracts covering accidental damage from handling must be backed by the association’s contractual liability insurance.3Online Sunshine. Florida Statutes 634.414 – Forms, Required Provisions
What Happens If the Company Fails
The financial safeguards in Chapter 634 exist so that your claim gets paid even if the warranty company goes under. Providers must either maintain a statutory reserve or purchase contractual liability insurance that covers 100 percent of their claims exposure from an insurer approved by the Office of Insurance Regulation.
For motor vehicle service agreements, the backup insurer must maintain a surplus of at least $15 million. If the warranty company fails to meet its obligations for any reason, including insolvency or bankruptcy, the contractual liability insurer must pay claims and refunds directly to consumers.4Online Sunshine. Florida Statutes 634.041 – Financial Security Requirements
Service warranty and home warranty associations that use the insurance option are subject to the same rule: the policy must include a provision requiring the insurer to pay claims directly to consumers if the association becomes unable to do so, and neither party can cancel the policy without 60 days’ written notice to the Office of Insurance Regulation.5Online Sunshine. Florida Statutes 634.406 – Financial Requirements
Practically, this means that when a provider disappears, you look for the name of the contractual liability insurer inside your contract. The statute requires it to be identifiable, and it’s the entity that owes you payment if the seller can’t.
The Federal Layer: Magnuson-Moss
Chapter 634 doesn’t operate alone. The federal Magnuson-Moss Warranty Act sets baseline disclosure rules for written warranties on consumer products costing more than $15. It requires the Federal Trade Commission to set disclosure standards, specifies what qualifies as a “full” warranty versus a “limited” one, limits how warrantors can disclaim implied warranties, and gives you the right to sue for breach of warranty obligations.6Federal Trade Commission. Magnuson-Moss Warranty – Federal Trade Commission Improvements Act
Warranty information must be presented in simple, concise language within a single document, and any limitations on implied warranties must appear on the face of the warranty. For warranties posted online, the required disclosures must be placed near the beginning of the text rather than buried at the bottom of a webpage.
If the warrantor has established an informal dispute resolution process under the Act, you may be required to use it before filing a lawsuit. Those procedures are governed by 16 CFR Part 703.7Federal Trade Commission. Magnuson-Moss Warranty Act – Informal Dispute Settlement Procedures Where the state and federal rules address the same issue, the stricter rule governs. Florida’s cancellation and financial security requirements generally go beyond federal minimums, while Magnuson-Moss adds implied warranty protections that Chapter 634 does not duplicate.
Filing a Complaint
If a warranty provider refuses a legitimate claim or engages in deceptive practices, complaints go to the Florida Department of Financial Services. Before filing, contact the company directly and give it a chance to resolve the issue. Keep records of every communication.
If that doesn’t work, submit a complaint through the department’s online Consumer Assistance Portal. You’ll need the exact name of the company, your policy and claim numbers, a description of the problem, and copies of supporting documents. By statute, the insurance company has 14 days to respond to the department, and the department aims to resolve most issues within 30 days.8Florida Department of Financial Services. Get Insurance Help
Each complaint is assigned to an insurance specialist who reviews the provider’s response and decides whether the provider violated Chapter 634. Patterns of violations can trigger the formal enforcement actions described below, so individual complaints carry real weight even when the amount at stake seems small.
Penalties Providers Face
Florida enforces Chapter 634 through administrative fines, license actions, and cease-and-desist orders. For service warranty associations, an administrative penalty of up to $500 per violation can be imposed in lieu of license suspension or revocation on a first offense. If the violation involves willful misconduct, the fine increases to up to $1,000 per violation, and can be augmented by an amount equal to any commissions the provider earned in connection with the violation.9Florida Senate. Florida Statutes 634.426 – Administrative Fine in Lieu of Suspension or Revocation
For motor vehicle service agreement companies, the Office of Insurance Regulation can issue cease-and-desist orders against providers engaging in unfair or deceptive practices or operating without a license. An unlicensed provider faces an administrative penalty of up to $1,000 for each contract offered or sold. The office can also suspend or revoke a provider’s license if the provider knew or should have known it was violating the law.10Online Sunshine. Florida Statutes 634.285 – Cease and Desist and Penalty Orders
Losing a Florida license is the sanction that keeps providers in line. A company that loses it cannot legally sell, market, or administer warranty contracts in the state, which is why a well-documented consumer complaint can matter well beyond the dollar amount of a single claim.