Colorado home warranty and vehicle service contract law: three products, three sets of rules

Colorado does not run a home warranty, a vehicle service contract and an appliance service contract through one insurance-code chapter. A home warranty sits in the real estate article of the professions title (Title 12), a vehicle service contract in the vehicles title (Title 42), and other consumer-goods service contracts in the insurance title (Title 10). This page sets out what each statute requires, including a 2026 change that keeps the home warranty part in force.

Correction (8 October 2026): an earlier version of this page said that section 12-10-905 "lists prohibited practices" and that section 12-10-904 set penalties in general terms. Section 12-10-905 contains one prohibition, on lenders requiring a home warranty as a condition of financing, and section 12-10-904 makes a knowing violation of Part 9 a class 2 misdemeanor. The page also did not mention that Part 9 had been scheduled to be repealed on September 1, 2026; that repeal date has since been removed (see below). Both points are now stated accurately.

In short

Home warranty: Title 12, Article 10, Part 9 (C.R.S. 12-10-901 to 12-10-906), in the Division of Real Estate's title. It sets contract content and a few prohibitions; the sections we read contain no licensing, bond or reserve requirement.¹
Still in force: Part 9 carried a repeal date of September 1, 2026. House Bill 26-1287, signed June 4, 2026, repealed that provision and removed Part 9 from the sunset schedule.²
Gas-to-electric option: a home warranty issued or renewed on or after July 1, 2024 that covers replacing a gas-fueled appliance must let the homeowner choose an electric replacement, with the extra cost capped.¹
Vehicle service contract: Title 42, Article 11. The provider must be insured under a reimbursement insurance policy from an insurer or administrator authorized in Colorado before the contract may be sold.³

Home warranty: Title 12, Article 10, Part 9

Colorado defines a "home warranty service contract" as an agreement under which a person, for a predetermined fee and for a specified period, undertakes to maintain, repair or replace elements of a specified new or preowned home: structural components such as the roof, foundation, walls or floors; utility systems such as electrical, air conditioning, plumbing, HVAC and heating; and appliances such as stoves, washers, dryers and dishwashers. The definition excludes a public utility's contracts for the utility systems and appliances, and a builder's warranty provided in connection with the sale of a new home (12-10-901).¹ The 2019 recodification moved this subject from former Title 12, Article 61, Part 6 into Article 10, within the Division of Real Estate's title.¹

C.R.S. Title 12, Article 10, Part 9, section by section
Section	What it provides
12-10-902	A company may not require a home buyer, seller or person refinancing a home to purchase a home warranty service contract¹
12-10-903(1)	Every contract must list all excluded items; all other coverage limitations, including any preexisting-condition exclusion; the procedure for obtaining repairs or replacements; the time after notice within which repairs or replacements will be made; a specific duration with an exact termination date not tied to an unspecified future closing date; whether the contract is transferable; and a statement that actions under it may be covered by the Colorado Consumer Protection Act or the Unfair Practices Act, with a possible right of civil action¹
12-10-903(2)	Gas-to-electric replacement terms for contracts issued or renewed on or after July 1, 2024 (below)¹
12-10-904	A person who knowingly violates Part 9 commits a class 2 misdemeanor, and each instance is a separate offense¹
12-10-905	It is unlawful for a lending institution to require the purchase of a home warranty service contract as a condition of financing the home purchase¹

The sections of Part 9 we read (12-10-901 through 12-10-905) do not require a home warranty company to hold an insurance license, register as a provider, or maintain a reserve, reimbursement policy or bond. That makes the contract terms the main thing a buyer can check; point 4 of our standard, which looks for a funded-claims mechanism where a state requires one, has nothing to test against in Part 9. Colorado's general consumer protection law remains available for deceptive conduct, which is why section 12-10-903(1)(g) requires the contract to say so.¹

The July 1, 2024 gas-to-electric terms

House Bill 23-1134 added subsection (2) to section 12-10-903. For a contract issued or renewed on or after July 1, 2024 that covers replacement of a gas-fueled appliance, the contract must let the homeowner choose a similar device that runs on electricity. The statute defines a gas-fueled appliance as a furnace, HVAC system, boiler, water heater, oven, stove or dryer that directly combusts a gaseous or liquid fuel. The company may require the homeowner to pay the additional cost of an electric appliance that costs more than a gas replacement under the contract, but that extra cost, excluding installation and other associated costs, may not exceed the retail cost of the electric replacement minus the retail cost of a gas replacement. The company must supply a replacement that meets the efficiency requirements in Article 7.5 of Title 6 and other state law. For a gas furnace, HVAC system, boiler or water heater, the contract must allow a heat pump-based system; for a gas stove, an electric or induction stove at the homeowner's discretion.¹

The 2026 sunset: Part 9 stays

The 2024 statute book ends Part 9 with section 12-10-906: "This part 9 is repealed, effective September 1, 2026," subject to review under section 24-34-104.¹ House Bill 26-1287, concerning continuation of the Division of Real Estate's regulatory functions, repealed section 12-10-906 and removed the "legal requirements pertaining to home warranty service contracts under part 9" from the list of functions scheduled for repeal; it continued the Division itself to September 1, 2037. The General Assembly's bill page shows the governor signed it on June 4, 2026 and lists an effective date of August 12, 2026.² Because the act is a separate piece of legislation from the statute printout, the printed 2024 Part 9 will still show the old repeal date; check the current statutes on the General Assembly's site for the codified text.

Vehicle service contracts: Title 42, Article 11

Article 11 of Title 42 is titled "Motor Vehicle Service Contract Insurance" even though it sits outside the insurance title. It defines a motor vehicle service contract as an agreement given for consideration over and above the lease or purchase price that obligates a provider to perform or provide repair or replacement service, or indemnification for it, for the operational or structural failure of a motor vehicle due to a defect in materials or skill of work or normal wear and tear. It expressly excludes mechanical breakdown insurance (42-11-101), which is why our guide to mechanical breakdown insurance vs. a service contract treats the two as separate products.³

C.R.S. Title 42, Article 11, section by section
Section	What it provides
42-11-102	A contract may not be issued, sold or offered unless the provider is insured under a reimbursement insurance policy issued by an insurer or administrator authorized to do business in Colorado³
42-11-103	The policy must conspicuously state that its issuer will pay on the provider's behalf all sums the provider is legally obligated to pay for failure to perform under the contracts³
42-11-104	The contract must conspicuously state that the provider's obligations are guaranteed under a reimbursement policy, and give the issuer's name and address, the policy number, and how a holder files a claim under the policy³
42-11-105	Does not apply to motor vehicle manufacturers' express warranties and service contracts as defined in section 42-10-101(3)³
42-11-106 to 42-11-108	Failure to comply is a deceptive trade practice under the Colorado Consumer Protection Act; the attorney general and district attorneys enforce the article; a holder may bring a civil action, and the court must award reasonable attorney fees and costs to a prevailing party³
42-11-109	A prepaid agreement that provides only routine maintenance is neither a service contract nor a contract of insurance³

Reading all of Article 11 (sections 42-11-101 through 42-11-109), we found no bond or net-worth alternative to the reimbursement insurance policy. A buyer can use section 42-11-104 directly: the contract itself must name the issuer of the policy and give the policy number. For checking a provider more generally, see how to verify a vehicle service contract provider.

Everything else: consumer-goods service contracts (Title 10)

Title 10, Article 4, Part 16 covers service contracts on consumer products. It exempts home warranty service contracts governed by Part 9, motor vehicle service contracts governed by Article 11 of Title 42, warranties, maintenance agreements, certain utility contracts, contracts with non-consumers, contracts on property with a purchase price of $100 or less, and a builder's warranty on a new home (10-4-1602). A provider under Part 16 must assure faithful performance either by insuring all its contracts under a reimbursement insurance policy from a licensed insurer, or by maintaining, with its parent company, a net worth or stockholders' equity of at least $100 million (10-4-1603(4)).⁴ This part is outside the home and auto scope of this Library, and is included here to show where the line between the three Colorado regimes falls.

What this means for a Colorado buyer

For a home warranty, read the contract against the 12-10-903(1) list: exclusions, preexisting-condition language, claim procedure, response time, an exact end date, a transfer statement, and the consumer-protection notice. If the contract covers gas appliances and was issued or renewed after July 1, 2024, look for the electric-replacement terms. For a vehicle service contract, look for the reimbursement-insurer name and policy number the contract must display. For complaint routes, see where to file a warranty complaint; for a contract that may not transfer when you sell, see how transferring a warranty works.

Last reviewed: 8 October 2026. Statute text is from the 2024 Colorado Revised Statutes as published by the Office of Legislative Legal Services (an uncertified printout) and the signed text of House Bill 26-1287. This page is general information, not legal advice.