VA home service contract bonds.
From $100. Enter your amount.
A home service contract provider must register with the Virginia Department of Agriculture and Consumer Services before selling in the Commonwealth, and § 59.1-434.3 conditions that registration on a bond or letter of credit in favor of the Commonwealth. The amount steps up with the total value of your unexpired contracts, through tiers of $10,000, $40,000, $65,000, and $90,000. Premiums cost 1% of the bond amount, $100 minimum; the application collects no credit information at the standard amount, and most applications approve instantly.
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Apply to filed in one sitting.
Registration is an annual paper chase; the bond is the easy part of it. Enter your tier amount, pay, and attach the original to your Form 801. Here is the whole thing:
Apply online
Your company details, the county you operate from, the bond amount your tier requires, and an effective date — that is the entire application.
Issued on the spot
The application collects no credit information at the standard amount, and pricing runs 1% of the bond amount from a $100 minimum — the executed bond generates as soon as you pay.
File with VDACS
VDACS wants the ORIGINAL signed bond, in favor of the Commonwealth of Virginia, attached to your registration. We email the executed bond and mail the wet-ink original to you or straight to the Office of Charitable and Regulatory Programs in Richmond.
What it is and who needs it.
What the home service contract bond actually covers
A home service contract is what most homeowners call a home warranty — under § 59.1-434.1, a contract for separately stated consideration to perform the service, repair, replacement, or maintenance of property. Section 59.1-434.7 says these are expressly not contracts of insurance in the Commonwealth and are not regulated under Title 38.2, which is why they land at VDACS rather than the Bureau of Insurance. The provider — the party contractually obligated to the purchaser — is who registers and who bonds.
Registration runs through the VDACS Office of Charitable and Regulatory Programs on Form 801, with a $300 annual fee, audited financial statements, and a renewal due every July 1. Before registration issues, § 59.1-434.3 requires the provider to file and maintain a bond with corporate surety from a company authorized to transact business in the Commonwealth — or an FDIC-insured letter of credit — in favor of the Commonwealth for the benefit of purchasers, payable where the provider does not fulfil its obligations under the contracts it sold.
Two things sit alongside the bond. The provider must keep a funded reserve of not less than 40 percent of gross consideration received, less claims paid, on in-force Virginia contracts. And in lieu of both the bond and the reserve, a provider may instead file a contractual liability insurance policy covering 100 percent of its home service contract liabilities including claims administration, cancellable only on 60 days’ notice to the Commissioner. Providers whose net worth exceeds $100 million are exempt from the chapter altogether under § 59.1-434.7.
You need this bond if you are
One application, issued on the spot.
Submit the application with the amount your tier requires — the executed bond generates as soon as you pay, and the wet-ink original follows for your VDACS filing.
Start the application →Common questions.
Other Virginia bonds.
VDACS registration, one filing away.
Pricing from $100 at a rate of 1% of the bond amount. Enter your tier and file with the Office of Charitable and Regulatory Programs. Free until issued.