SAMPLE COVERAGE TERMS I. GENERAL COVERAGE PROVISIONS I. GENERAL COVERAGE PROVISIONS A. COVERAGE 1. During the Coverage Period, HWA’s sole responsibility will be to arrange for an Authorized Repair Technician to provide Service(s) for Covered Systems and Components located on the Covered Property in accordance with the definitions, terms and conditions of this Contract. 2. Coverage will only apply to system and component malfunctions explicitly listed as “Included.” Malfunctions which existed on the Coverage Period Start Date will be covered only if the malfunction was unknown and could not have been detectable by visual inspection or simple mechanical test. Certain items may not be covered by this Contract. Refer to the “Covered Systems and Components” and “Limitations and Exclusions” sections on the following pages for coverage details. 3. This Contract does not cover known defects. 4. HWA IS NOT AN AUTHORIZED REPAIR TECHNICIAN and will not actually be performing the repair or replacement of any systems or components. 5. HWA’s obligation to pay for the repair or replacement of Covered Systems and Components under this Contract is limited to $5,000 per Covered System and Component and $15,000 in the aggregate during the Contract Period, subject to the further limitations set forth herein. 6. This is not a contract for insurance. Obligations of the provider under this Contract are backed only by the full faith and credit of the provider (issuer) and are not guaranteed under a reimbursement insurance policy. B. DEFINITIONS 1. “ Authorized Repair Technician” means the service contractor HWA dispatches in response to Your request for Service. 2. “ Contract” means this service contract between You and HWA including the Coverage Letter. 3. “ Coverage Letter” means the letter attached to this Contract that includes Your specific coverage information. 4. “Coverage Period” means the duration of time identified on the Coverage Letter. 5. “Coverage Period Start Date” means the date listed on the Coverage Letter. 6. “ Covered Property” means the address that is eligible for coverage and identified on the Coverage Letter. The Covered Property must be a single-family home, A. “ Listing Coverage” for the property listed by Home Seller and Coverage Period starts on the Coverage Period Start Date and continues until the earliest to occur of the following (i) the sale of the Covered Property, (ii) the expiration or cancellation of the listing of the Covered Property, (iii) 180 days from the Coverage Period Start Date (the “Listing Period,” including any extension thereof). Optional coverage for HVAC units must be added or removed within 24 hours of initial order date. HWA, in its sole discretion, may extend Home Seller’s Listing Coverage after expiration of the initial 180-day period. Listing Coverage is only available if property is listed with a licensed real estate professional and the listing property is either owner occupied or vacant at the time the initial order for coverage is placed. HWA’s obligation to pay for the repair or replacement of Covered Systems and Components under Listing Coverage is limited to $250 per occurrence and $1,500 in the aggregate during the Contract Period, subject to the further limitations set forth herein. B. If payment is made in full on or before the Coverage Period Start Date, Homeowner’s coverage begins on the Coverage Period Start Date and ends on the last day of the Coverage Period, as set forth in the Coverage Letter. Optional coverage may be added within 30 days of Coverage Period Start Date, after which, coverage eligibility is subject to a 30-day waiting period. If the Contract was entered into as part of a real estate transaction and ordered by a licensed real estate professional, title company or financial institution, Homeowner’s coverage, as set forth in the Coverage Letter, is subject to a 14-day payment grace period. Coverage may be renewed for an additional one (1) year period (“Renewal Term”) as described in more detail below. C. THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE INITIAL COVERAGE PERIOD, WE WILL CONTACT YOU WITH THE TERMS (INCLUDING PRICE) OF A ONE (1) YEAR RENEWAL PERIOD. FOLLOWING THE EXPIRATION OF THE INITIAL COVERAGE PERIOD, IF YOU ELECT TO RENEW THIS CONTRACT FOR AN ADDITIONAL ONE (1) townhome or condominium (including manufactured housing, which must be anchored to a permanent foundation and not moved during the duration of this Contract) under 5,000 square feet, unless: a) An alternative dwelling type (i.e., 5,000 square feet or more, new construction or multiple units) is applied for by phoning 1-888-HWA-RELY; and b) Such alternative dwelling type is approved by HWA as a Covered Property. Covered Property must be owned or rented residential-use property, not commercial property or residential property converted into a business. 7. “ Covered System(s) and Component(s)” means: (i) systems and components as specifically described herein as “Included” and that are located inside the confines of the main foundation of the Covered Property; (ii) are in proper working order on the Coverage Period Start Date and (iii) become inoperative due to normal wear and tear, including breakdowns due to insufficient maintenance if at the time the issue or breakdown was unknown. Components shall be considered in proper working order if no defect is known or would have been detectable by a visual inspection or mechanical test on the Coverage Period Start Date. Attached garages, detached garages, exterior pools, spas, well pumps, septic tank pumps and air conditioners are included in this definition. 8. “Homeowner” means any Customer who is not a Home Seller. 9. “ Home Seller” means a Customer who is selling the Covered Property and has elected to enroll in Listing Coverage as described herein. 10. “HWA” means Home Warranty of America, Inc. 11. “Listing Coverage” means the Home Seller’s coverage as described herein. 12. “ Service” or “Services” mean the diagnosis and performance of the work, including parts and labor, to repair or replace any Covered System and Component that becomes inoperable due to a mechanical failure caused by routine wear and tear in accordance with the provisions set forth in this Contract. 13. “ Trade Call Fee” means the amount due by You for a Service visit by an Authorized Repair Technician as listed on the Coverage Letter. 14. “ You” and “Your” and the “Customer” means the person contracting for Services covered by this Contract and whose name(s) appears on the Coverage Letter. 15. “ SEER Standard” means current U.S. Department of Energy Seasonal Energy Efficiency Ratio (SEER) requirement for the state of the Covered Property. II. COVERAGE DURATION, RENEWAL PAYMENT PLANS YEAR PERIOD (THE “INITIAL RENEWAL PERIOD”), THEN YOU WILL BE ENROLLED IN AN AUTOMATIC RENEWAL OF THIS CONTRACT FOR ADDITIONAL ONE (1) YEAR PERIOD(S) THEREAFTER (THE “ADDITIONAL RENEWAL PERIOD(S)”). THE INITIAL RENEWAL PERIOD AND ADDITIONAL RENEWAL PERIOD(S) ARE REFERRED TO COLLECTIVELY AS “RENEWAL PERIODS.” THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF COVERAGE DURING THE CURRENT RENEWAL PERIOD, WE WILL NOTIFY YOU OF THE TERMS (INCLUDING AN INCREASE TO PRICE, IF APPLICABLE) OF ANY ADDITIONAL RENEWAL PERIOD. D. UPON RENEWAL OF THE INITIAL RENEWAL PERIOD YOU WILL AUTOMATICALLY BE RENEWED FOR SUBSEQUENT ADDITIONAL RENEWAL PERIODS UNLESS YOU NOTIFY US, IN WRITING, PRIOR TO THE PLAN EXPIRATION, BY MAIL: P.O. BOX 850, LINCOLNSHIRE, IL 60069 OR BY EMAIL: CANCEL@HWAHOMEWARRANTY.COM. IF YOU REQUEST TO CANCEL AFTER AUTOMATIC RENEWAL TAKES PLACE, WE WILL HONOR YOUR REQUEST TO CANCEL IMMEDIATELY PURSUANT TO SECTION VII.E BELOW. IF YOU HAVE ANY QUESTIONS, OUR TOLL FREE NUMBER IS 1-888-492-7359. YOU MAY CANCEL THIS CONTRACT AT ANY TIME AS DESCRIBED IN SECTION VII.E BELOW. E. You will select your payment method upon order of this Contract, or at time of renewal during the Initial Renewal Period. Payment may be made in: twelve (12) monthly installments; three (3) installments; or in full at the commencement of the Initial Renewal Period or any Additional Renewal Period. Contracts enrolled in monthly installment payment plans will auto-renew prior to expiration of Initial Contract Period and Additional Renewal Periods. You agree to make payment and understand and agree such payments will be drafted from a pre-authorized credit card or checking account (unless You pay by check), based on the payment plan You choose. You will not receive a monthly or annual bill. If Your payments are not current, We may refuse to provide service under this Contract. Except as otherwise specifically stated in this Contract, Your payments are nonrefundable. Including a home warranty in your real estate listing may help your home sell faster and at a higher value.
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