Terms & Conditions Introduction
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Seller acknowledges by signature and/or payment that they have read, understand, and accept the terms of this Service Contract and that Our obligation hereunder is conditional upon the truth and accuracy of statements made and actions taken by the Seller. Seller further confirms all Covered Items are fully functional and not experiencing a Breakdown as of the Contract Start Date. Seller is obligated to pay the cost for any Seller coverage at the time of closing.
Buyer acknowledges by signature and/or payment that they have read, understand, and accept the terms of this Service Contract and that Our obligation hereunder is conditional upon the truth and accuracy of statements made and actions taken by the Buyer. Buyer further confirms all Covered Items are fully functional and not experiencing a Breakdown as of the Contract Start Date.
Definitions
Breakdown means a full or partial failure of a Covered Item due to normal wear and tear during the manufacturer’s or industry standard life expectancy of the Covered Item.Component Part means covered parts of a Covered Item as listed in the “What Is Covered” section.Confirmation Page means the pages of this Service Contract that list information regarding You, Us, and the Service Contract.Contract Administrator means the party performing customer service and claims processing Services for the Contract Obligor/Provider. The Contract Administrator is not liable for any of the obligations of the Contract Obligor/Provider. The Contract Administrator is shown on the Confirmation Page.Contract End Date means the date this contract ends. No claim will be accepted after this date. The Contract End Date is shown on the Confirmation Page.Contract Fee means the amount paid for this Service Contract, as shown on the Confirmation Page. Payment is due at closing and must be received within seven (7) business days to ensure coverage. Contract Fee for the Seller Preferred Upgrade Package is due at closing, or sooner if a claim for that coverage is submitted.Contract Insurer means the party insuring performance of the Contract Obligor/Provider if shown on the Confirmation Page.Contract Obligor/Provider means the party obligated to perform or arrange to perform Services pursuant to the terms of this Service Contract. The Contract Obligor/Provider is shown on the Confirmation Page and is also referred to as “We”, “Us” and “Our”.Contract Start Date means the date this coverage begins. No claim will be accepted prior to this date. The Contract Start Date is shown on the Confirmation Page.Covered Home means the residential dwelling covered by this Service Contract. The address of the Covered Home is shown on the Confirmation Page.Covered Item means those items shown to be covered on the Confirmation Page, which must be:- Located in a single-family or multi-family residence;
- Fully operational, and not experiencing a Breakdown as of the Contract Start Date;
- Located within the main perimeter of the main foundation of the Covered Home or within an attached garage (unless otherwise indicated) as of the Contract Start Date;
- Located in a building or room not being used for commercial or business purposes.
Deductible means the minimum amount You are required to pay for each claim. The Deductible is shown on the Confirmation Page.Emergency Condition means a situation that could affect Your ability to live in the Covered Home or a condition that if not addressed may result in serious damage to the Covered Home or injury to occupants, such as, but not limited to, loss of heating or cooling, loss of plumbing or a plumbing leak, or loss of electrical service to the Covered Home.Licensed Contractor means the person or entity You choose. Your Licensed Contractor must be licensed and bonded where the law requires, and where licenses are not required, must be lawfully permitted to perform installation or repairs or other regular service on the Covered Item that has a Breakdown. Your Licensed Contractor is not Our representative or agent.Service Contract means this agreement which has been purchased from Us and which includes the Confirmation Pages and any amendments. The Service Contract contains all the coverages, limitations and exclusions.Service means answer claim calls from You or Licensed Contractors, assign claim numbers, assist in locating a Licensed Contractor, speak to Your Licensed Contractor(s), make claim determinations, explain coverage, exclusions, and payment or reimbursement options, pay approved claim amounts, and otherwise administer claims. Services to be performed by Contract Obligor/Provider do not include diagnostics or work to repair or replace your Covered Item(s). Diagnostics and/or work to repair or replace your Covered Item(s) are to be performed by Your Licensed Contractor. We do not and are under no obligation to dispatch Licensed Contractors.You andYour mean the Contract Holder shown on the Confirmation Page, or the person to whom this Service Contract was properly transferred.Waiting Period means the period of time starting on the Contract Start Date, as shown on the Confirmation Page, during which no claims are considered for coverage under this Service Contract.
An item not indicated as covered on the Confirmation Page or that is indicated as Not Covered in the WHAT IS COVERED section or that does not meet these requirements is NOT a Covered Item.
Service Contract Introduction
This Service Contract provides assistance to You if a Breakdown occurs on a Covered Item due to normal wear and tear. This Service Contract is not intended to shift responsibility for minor repairs or normal maintenance. It does not cover everything. It may not cover the entire cost of repair or replacement of a Covered Item. A Deductible is required for each claim. Please read the following terms and conditions carefully. They describe the terms of Your coverage and how to obtain Service.
What Is Covered
See Your Confirmation Page to determine which of the following are included in Your Service Contract as a Covered Item. Only those indicated on the Confirmation Page as covered are included and no coverage is provided on any product or system not indicated as covered on the Confirmation Page. Covered Items are different for the Seller and Buyer as shown on the Confirmation Page.
Attic & Exhaust Fans
Central Air Conditioning (Up to $2,250)
Electrical
Exterior Water & Sewer Line Coverage (Up to $1,000)
Garage Door Opener
Garage must be attached to the Covered Home.
Heating System
(Electric, gas, and oil up to $2,250; ductwork up to $500; steam, hot water, and geothermal up to $1,500; heating and cooling combination system up to $2,250)
Humidifier (Up to $500)
Kitchen Appliances
Coverage is limited to appliances located in the primary kitchen area of the Covered Home and included in the contract to purchase at the time of the sale of the Covered Home, or be built-in.
Plumbing Systems
Roof (Up to $550)
Septic (Up to $400)
Coverage for septic systems begins thirty (30) days after the Contract Start Date.
Washer/Dryer (Up to $400 in total)
Water Heater (Up to $500)
Water Well Pump (Up to $400)
Must be primary water source. Coverage begins thirty (30) days after the Contract Start Date.
Optional Covered Items
(Included only if indicated as covered on the Confirmation Page.)
Additional Frigerators (includes free standing freezers AND Wine Coolers) (Up to $1,000)
Gas Fireplace (Permanently Installed) (Up to $400)
Inground Pools/Spas (Up to $600; premium/salt water pool/spa up to $1,200)
Sprinkler System (Up to $250)
Termite Control (Up to $500)
Water Softener (Up to $600)
Buyer Preferred Upgrade Package
(Adds the following additional coverages to the Covered Item listed if this package is indicated as included on the Confirmation Page.)
Customer Service
- Under this Service Contract, You choose Your own Licensed Contractor. You must contact the Contract Administrator before any work is done unless You are faced with an
Emergency Condition (see the Emergency Condition section below). Telephone service is available 24 hours a day, 7 days a week. No claim forms are used. When a Covered Item has a Breakdown, call the Contract Administrator at the telephone number shown on the Confirmation Page to start a claim, or to start a claim online, visit Our website, also shown on the Confirmation Page. After receiving a claim number, You must call the Contract Administrator so they can speak to the licensed Contractor and We can make a determination about coverage for the proposed repair and, if covered, provide the approved amount and help You choose the option You want to use to make payment to the Licensed Contractor. All approved parts and equipment must be purchased, and all approved work completed to receive reimbursement. there is no payment or reimbursement without prior approval unless You are faced with an Emergency Condition. You are responsible for any cost in excess of the amount We approve. If Your Licensed Contractor performs work other than as pre-approved by Us, that work may not be covered by this Service Contract and, if not, You will be responsible to pay for work that was not pre-approved. - We can recommend a Licensed Contractor for You if You do not have a Licensed Contractor in Your area, or if You would rather have Us recommend the Licensed Contractor.
- A Deductible is required for each Covered Item repair or replacement. The Deductible is shown on the Confirmation Page. If repairs are made to parts of additional Covered Items, a separate Deductible will apply to each Covered Item repaired.
- We will at Our sole discretion determine the approved amount within the contract limits. You are responsible to decide whether to use the approved amount to pay toward repair of the Covered Item or as cash in lieu to put toward replacing the Covered Item. The approval amount for any replacement is based on like kind or better efficiency. For air conditioning or heating equipment, like kind includes equal or a better energy efficiency rating. For air conditioning equipment, this is the SEER rating. When replacement products of exact dimensions are not available, benefits are limited to installation of like kind equipment, but not for the cost of carpentry or construction required by the different dimensions. We are not responsible for upgrades or matching colors or brands, and We are not limited to brand name products. We may approve the use of refurbished, reconditioned, or non-original manufacturer parts in fulfilling Our obligations. Determination of the operating condition as of the Contract Start Date and the nature of any failure will be made by Us based upon the professional opinion of Our claim staff reflecting, but not limited to, Your Licensed Contractor’s diagnosis.
- We reserve the right to seek a second opinion for any claim.
- No claims will be honored after the Contract End Date.
- If no covered Breakdown is discovered or repaired during a service call, You are responsible for the entire cost, including all labor, of the service call.
- No additional Deductible will be required where service work fails within 30 days after an approved claim is serviced, except where otherwise noted.
Emergency Condition: If You take action prior to having Our authorization due to an Emergency Condition, You must submit to the Contract Administrator a detailed diagnosis from Your Licensed Contractor along with a detailed invoice showing the amount You paid for the services in order to be considered for reimbursement. The Breakdown must qualify under the terms of this Service Contract or You will not be reimbursed for any expense you incurred. Any reimbursement for an Emergency Condition is subject to the Deductible and will not exceed the limits of liability in this Service Contract. If an Emergency Condition exists and You must leave the Covered Home, You may be eligible for the Hotel Benefit shown on the Confirmation Page with Our prior approval.
Limitations of Coverage
The Maximum Aggregate Liability shown on the Confirmation Page is the maximum We will pay for all claims in total, regardless of the number of Covered Items or the number of claims for repairs or replacement. The Maximum Aggregate Liability applicable to a Seller shown on the Confirmation Page is for the life of the listing. Payment by Us for any claim for repair or replacement for Seller does not affect the amount of coverage for the Buyer.
In addition, certain Covered Items have an individual Limit of Liability as shown on the Confirmation Page. When a Covered Item has an individual Limit of Liability, that is the maximum We will pay for repair or replacement of that Covered Item, regardless of the number of claims for that Covered Item or the number of systems/units in the Covered Home.
If the Covered Home is a foreclosure or a repossessed home, there is no coverage for the Seller, and coverage for the Buyer begins after the Waiting Period shown on the Confirmation Page.
Approval amounts for Covered Items more than one (1) year beyond the manufacturer's life expectancy or the industry standard life expectancy as of the date the diagnosis is reported to Us are solely at Our discretion.What is not Covered (Exclusions)
Specific exclusions related to individual Covered Items are shown in the “Not Covered” section of each Covered Item. Exclusions listed here may apply to any Covered Item.Any claim submitted during any Waiting Period shown on the Confirmation Page is not covered. We will not pay for any additional costs or related expenses which may be required to complete repairs, nor will We upgrade or remedy any lack of capacity, previous improper installation, previous repair of or design of appliances, systems and components; problems occurring because of modifications or alterations to appliances, systems or components; failure to meet building or zoning code requirements or violations; city, county, state, federal, or utility regulations or upgrades required by law. Systems, components, or parts experiencing a Breakdown as of the Contract Start Date are not covered. Items in common areas or facilities of mobile home parks, condominiums, and townhomes are not covered. We are not responsible for repairs or replacements required as a result of missing parts, fire, war, flood, smoke, water damage, lightning, freeze-up, earthquake, theft, storms, accidents, nuclear explosions, reaction, radiation or radioactive contamination, insurrection, extreme or unusual climate conditions, rust-out, corrosion, riots, vandalism, code violations, improper installation, acts of God, pest/animal damage, structural changes, water failure and/or electrical surges, soil movement or mud, or failure to clean or maintain as instructed by the equipment manufacturer. Nor are We responsible for repairs of any cosmetic defects or cost of cleaning of equipment or parts. We are not liable for consequential or secondary damage from any Covered Item for property damage or personal injury, nor for service relating to any toxic materials or asbestos in any way related to or arising from any Covered Item. We are not responsible for any computerized or electronic energy management, lighting, or appliance management systems. We are not responsible for failure to provide reasonable service due to conditions beyond Our control; including, but not limited to delays in obtaining equipment, parts, or labor difficulties. Items not covered for the Covered Home seller or for the first 30 days after the close of sale for the Covered Home buyer are: Any improper operation or malfunction due to rust for any system, component or appliance, or pools/spas and collapsed ductwork. We are not responsible for additional charges to install or remove unrelated equipment or systems in order to make a covered repair. Vacant or unoccupied homes are covered during the listing period as long as they are maintained and not abandoned. We will not be obligated to service any system or appliance classified by the manufacturer as commercial, or products that are leased, stolen, vandalized, not properly maintained or connected, misused, neglected, or that break down due to abnormal use or damages due to inadequate capacity as determined/diagnosed by a Licensed Contractor in the specific field and/or by Us. We will not pay for any consequential damage. We are not responsible for any costs due to repair, replacement, installation and labor of any Component Part while under existing manufacturer’s warranty or third-party service plan/agreement that covers any portion of the Covered Item for parts and/or labor. Any inspections, reports, findings and/or disclosures will be made available to Us upon request. Anyone doing work on Covered Items is in no way a representative or agent of Us or the Contract Administrator. Coverage will not be provided if We are not notified when a problem is discovered and prior to the Contract End Date. All repairs under this Contract must be completed within 30 days of the date We are first notified or the claim will be permanently closed unless, for good cause shown by You, We agree in writing to permit consideration of the claim at a later time.
General
- This Service Contract will be interpreted and enforced according to the laws in the State in which the Covered Home is located.
- Any dispute arising under this Service Contract shall be submitted for binding arbitration under the auspices of the American Arbitration Association’s local office. Each party shall pay for its own representative(s) and shall bear arbitration costs equally. The Arbitrator’s Award shall be final and binding and may be enforced by any Court and law.
- Coverage for a lease purchase agreement is available for the Lessee only. This coverage begins upon payment of the Contract Fee and the acceptance of the lease purchase agreement by Us.
- This Service Contract may be renewed at Our option and where permitted by State Law. Prior to renewal, We will notify You of the proposed renewal terms, price, and payment options.
Cancellation: You may cancel this Service Contract by notifying the Contract Administrator in writing. If You cancel within thirty (30) days of the Contract Start Date, We will pay 100% of the Contract Fee paid minus any claims paid. If You cancel more than thirty (30) days after the Contract Start Date, We will pay an amount equal to the pro-rated portion of the Contract Fee paid for the time remaining to the Contract End Date, minus any claims paid, and minus an administrative fee up to the lesser of 10% of the Contract Fee or $50.00. Any refund may be credited to any outstanding balance of Your account and the excess, if any, will be refunded. Any cancellation payment will be payable to the owner of the Covered Home. If the cancellation payment is not made within thirty (30) days of the date We receive Your written cancellation request, We will add an extra 10% for every thirty (30) days payment is delayed beyond the first thirty (30) days.
We may cancel this Service Contract upon fifteen (15) days advance written notice to You, including the reason for cancellation and the cancellation date, at the last known email or street address We have for You. We may cancel this Service Contract for any of the following reasons:
- Material misrepresentation concerning any Covered Item, or the use of the Covered Item, or any other fact related to the Service Contract;
- Non-payment of Contract Fee or Deductible;
- If the listing agreement for the Covered Home terminates or expires without sale of the property;
- Abuse, threatening, harming, or endangering the safety and/or wellbeing of any of Our employees, or
- Upon mutual agreement of You and Us.
- Buyers and/or Sellers, by accepting this Service Contract, give Us, the Contract Administrator, and Our affiliates authorization to contact them by phone, mail and/or electronically.
- If ownership of the Covered Home changes during the Contract term, You must notify the Contract Administrator within thirty (30) days of property transfer for the Service Contract to be transferred to the new owner of the Covered Home.
- This is not an insurance policy. If a Contract Insurer is shown on the Confirmation Page, Our obligations are insured by a reimbursement insurance policy. If We fail to pay any claim for which We are liable or fail to pay any refund after cancellation within sixty (60) days of the date We received proof of loss or the date of cancellation, You are entitled to submit a claim direct to the Contract Insurer. When no Contract Insurer is shown on the Confirmation Page, this Service Contract is backed solely by the Full Faith and Credit of the Obligor/Provider.
- If the Covered Home is in a multi-family dwelling with four (4) units or less, the Service Contract must be purchased for each unit in the multi-family dwelling; if it is not purchased for each unit in the multi-family dwelling, any shared systems and/or appliances will not be covered. If the multi-family dwelling has more than four (4) units, shared systems and/or appliances are not covered in any case.
- Manufactured Homes: Manufactured homes must have a permanent address. Manufactured homes during the moving of location from one to another will not be covered from the time of disconnect until thirty (30) days after hook-up by a Licensed Contractor to the second location. Notice must be given to the Contract Administrator of the moving and address change of the Covered Home.
Special State Requirements
The following state specific requirements apply if Your Service Contract was purchased in one of the following states and supersede any other provision within Your Service Contract terms and conditions to the contrary.Alabama Residents Only
Any administrative fee on cancellations is limited to the lesser of 10% of the Contract Fee or $25.00.
Arizona Residents Only
Colorado Residents Only
This Service Contract may be covered by the provisions of the “Colorado Consumer Protection Act” or the “Unfair Practices Act”, articles 1 and 2 of title 6, C.R.S., and a party to this Contract may have the right of civil action under such laws, including obtaining the recourse or penalties specified in such laws.
Florida Residents Only
Georgia Residents Only
This Agreement only provides roof leak coverage for one-family or two-family residential building structures. We may only cancel this Service Contract for fraud, material misrepresentation or nonpayment, by You. If We cancel the Service Contract, notice of such cancellation will be in writing and given at least thirty (30) days prior to cancellation. Our obligations under this Agreement are insured under a Surety Bond issued by Philadelphia Indemnity Insurance Company, 4050 Crums Mill Road, Suite 201 Harrisburg, PA 17112. You are entitled to make a direct claim to them if We fail to pay any claim or refund within 60 days after You filed proof of loss or requested cancellation with Us. Nothing in the Arbitration Provision shall affect Your right to file such a claim to the insurer.
Iowa Residents Only
We are subject to regulation by the Iowa Insurance Division. Complaints which are not settled by Us may be sent to the Insurance Division at 1963 Bell Ave., Suite 100, Des Moines, IA 50315.
Nevada Residents Only
If You are not satisfied with the manner in which We are handling a claim on the Contract, You may contact the Commissioner at the Division of Insurance by calling 888.872.3234. We may cancel this Service Contract only if the reason for cancellation is nonpayment by You of the Contract Fee, or discovery of fraud or a material misrepresentation by You in obtaining the Service Contract or in presenting a claim thereunder, an act or omission by You, or a violation by You of any condition of the Service Contract, which occurred after the Contract Start Date and which substantially and materially increases the service required under the Service Contract, however, no such cancellation may become effective until at least fifteen (15) days after the notice of cancellation is mailed to You. Any reference to “administrative fee” in the Cancellation Provision is replaced with “cancellation fee”. The cancellation fee if You cancel the Service Contract will not exceed $25.00.
New Hamphshire Residents Only
If You have any questions regarding this Contract, You can call Us, or if You have a complaint against Us, You may contact the New Hampshire Insurance Department at 21 S. Fruit St #14, Concord, NH 03301 or at 603-271-2261.
North Carolina Residents Only
Any administrative fee on cancellations is applied to the prorated refund amount.
South Carolina Residents Only
If You have any questions regarding this Service Contract, or a complaint against Us, You may contact the South Carolina Department of Insurance, 1201 Main St. Ste. 1000, Columbia, SC 29201, or 800.768.3467.
Texas Residents Only
We will provide Service to you within 48 hours of Your contacting us for Service.
Utah Residents Only
This Service Contract is subject to limited regulation by the Utah Insurance Department. To file a complaint, contact the Utah Insurance Department. Coverage afforded under this Contract is not guaranteed by the Property and Casualty Guaranty Association. Notice of cancellation is effective no sooner than thirty (30) days after the delivery or first-class mailing of a written notice to You. Cancellation for nonpayment is effective no sooner than 10 days after delivery or first-class mailing of the notice to You. The Cancellation Provision is modified by deleting (c) and (d).
Wisconsin Residents Only
Wyoming Residents Only
The arbitration clause in the main body of this Service Contract does not apply. In the event of any disagreement, the parties may agree to arbitration in a separate written agreement.