PRIDE HOME WARRANTY SAMPLE TERMS OF SERVICE AGREEMENT

Throughout this Agreement (“Agreement,” “plan” or “contract”) the words “We”, “Us” and “Our” refer to Pride Home Warranty, 200 Continental Dr #401729, Newark, DE 19713 (PHW), the Obligor of this agreement. PHW offers service contracts which are not warranties. PHW reserves the right to revise this Agreement at any time and you are considered to be apprised of and bound by any changes. Terms may vary in different states.

A. Coverage

During the term of this agreement, we agree to pay the covered cost to repair or replace at our discretion the listed items as notated on your Order Summary Email Confirmation. Coverage is applicable when such items become inoperable due to normal wear and tear; and are in proven proper working condition on the effective date of this agreement with valid proof; and are located inside the confines of the main foundation of the home, with the exception of the air conditioner, exterior pool/spa, septic system, garage door opener, and well pump; Said determination being made by PHW, also considering and not limited to our independent contractor’s diagnosis. This Agreement does not cover any known or unknown pre-existing conditions. It is understood that we are not a service contractor and our not ourselves undertaking to repair or replace any such systems or components. This Agreement only covers occupied single-family residences (houses, mobile homes, apartments, town homes, cooperatives and condominiums) with less than 2,500 square feet of occupied living space are covered, unless an alternative dwelling type (i.e. above 2,500 square feet or multi-unit home) is applied, and appropriate fees are paid. There is no coverage for any residence that is also used to conduct a trade or business, and or foreclosed / short sale properties. Examples include daycare, nursing home, group residence, fraternity or sorority houses, professional offices and other similar uses. Common areas or items shared by non-purchasers of this agreement will not be covered. Coverage applies to the systems and appliances mentioned as “covered” in accordance with the terms and conditions of this Agreement.

B. Coverage Period

Coverage starts 30 days after acceptance of order application by us and receipt of all applicable agreement fees from your financial institution. After 30 days from the receipt of payment, your coverage will start and continue for 365 days from the start date. You agree that once you place the order and your payment has been processed by your financial institution to PHW, You will abide and be bound by the terms listed in this agreement. At our Sole Discretion, we reserve the right to waive the 30-day grace period so long as you provide proof or prior coverage, showing no lapse of coverage, within 7 days of order date from another reputable carrier.

C. Service Calls

  1. PHW must be notified by either you or your agent (or tenant) within 24 hours of a problem being discovered in order for work to be covered. We accept calls at 1855-774-3388. We must receive notice of any malfunction and appointment scheduled prior to the end of the coverage period.
  2. PHW will contact an authorized service provider within two (2) business days following a request of service during normal business hours, excluding holidays. An approved service provider will contact you to schedule a convenient time during normal business hours. However, should you request to have service outside of normal business hours, you will be responsible for payment of additional fees and/or overtime charges. PHW will determine if the situation indicates an emergency and will make efforts to facilitate emergency service. PHW is not an emergency service provider.
  3. We have the sole and absolute right to select the Service Contractor to perform the service as well as doing a second opinion. We will not reimburse for services performed without prior approval.
  4. You will be required to pay a service call fee (refer to your Order Summary page for your specific rate) for each item by a service provider, or the actual cost, whichever is less. The service fee is for each item to be diagnosed by a service provider approved by PHW and is payable to PHW or the approved service provider at the time of each visit. The service fee will apply to each call, including those calls where coverage is denied. The service fee is also payable by you if you fail to be present at a scheduled time or if you cancel a service call while a service provider is in route to your location or at your location. You are responsible in providing the service provider with easy access to the failure and in a safe working environment. Any failure to pay the service fee will result in suspension and cancellation of coverage until such time that the proper service fee is paid, at which time coverage may be reinstated; however the coverage period will not be extended.
  5. If service work performed under this contract should fail, then we will make the necessary repairs without an additional Trade Service Call Fee for a period of ninety (90) days on parts and thirty (30) days on labor.

D. Coverage

Unless more than one system or appliance is included below, the coverage is for no more than one system or appliance, unless additional fees are paid. Please note that specific coverage limitations are applicable to each type of system and appliance, as detailed below:

  1. Clothes Washer / Clothes Dryer
    Included: Components and parts such as: Motors, pumps, electronic boards, heating elements and relay, thermostats, fuses, wiring harness, igniters and modules.
    Excluded: Venting, lint screens, knobs and dials, damage to clothing.
  2. Dishwasher
    Included: Components and parts such as electronic board, pump, control switches, heating elements.
    Excluded: Racks, hinges,
  3. Oven / Range / Stove/ Cooktop
    Included: Components and parts such as Thermostats, fuse, switches, elements, burners, igniters, ignition modules, igniters, spark assemblies, glow sticks, electronic boards.
    Excluded: Clocks, Combo / Double units, venting of any kind.
  4. Built-In Microwave
    Included: All Components and parts.
    Excluded: Portable, Combo, or Countertop with a trim kit,
  5. Kitchen Refrigerator (located in kitchen)
    Included: Components and parts including integral freezer such as dampers, electronic boards, relays, switches, condensing and evaporative motors, thermostat.
    Excluded: Sealed System. Ice-maker and respective parts.
  6. Garbage Disposal
    Included: All Components and parts. Note – Units installed for replacement shall not exceed one half (1/2) horsepower
  7. Air Conditioning (Central).
    Included: Covers the primary floor air conditioning unit of the covered home for residential use not to exceed 5 (five) ton capacity. This Agreement covers component and parts such as: condenser fan and blower motor, thermostats, capacitors, relays, contactors, start assist, thermostats, switches, transformers, boards.
    Excluded: Geothermal systems, filters, mismatched systems, maintenance, refrigerant escape/leak and leaks of any kind.
  8. Heating System
    Included: Covers the residential primary system. Components and parts includes: condenser fan and blower motor, thermostats, capacitors, relays, contractors, start assist, thermostats, switches, transformers, boards, ignition modules, burner assembly, thermocouple.
    Excluded: Filters, solar and zone systems, humidifiers, flu and exhaust, tanks,geothermal unit, exchange mechanism / box, heat converter.
  9. Electrical System
    Included: Covers wiring, service panels, subpanels, switches, breakers, outlets, ground fault interrupters.
    Excluded: Damage to the electrical system caused by flood, fire, water, surge, power failure, and rust. Fixtures, inadequate wiring capacity, attic/exhaust fans, wire tracing, running of new wires.
  10. Plumbing System / Plumbing Stoppage.
    Included: Leaks in plumbing line NOT caused by freezing or roots. Toilet bowls, flapper, toilet float, fill tube, overflow tube, flush handle and chain, trip lever. Mainline stoppage is only covered if there is an accessible ground level clean-out in the home. Built in bathtub Whirlpool Motor.
    Excluded: Stoppages caused by collapsed, damaged or broken drain, vent or sewer lines outside the confines of the main foundation if the home, roots, or foreign object. Slab leaks, Sinks, Tubs and fixtures. If the lines are broken or infiltrated by roots or are otherwise stopped by roots, even if the break, infiltration or stoppage is within 75 feet from the access point, it is not covered. Access to drain or sewer lines from the vent or the removal of the water closet. Costs to locate, access or install a ground level clean out. Septic tanks. Water softener.
  11. Water Heater
    Included: Components and parts such as: Thermostats, burner assembly, couplings, switches, thermocouple, ignition module, heating element, gas igniter and coupler.
    Excluded: Solar water heater, lowboy/squat, leaks, and pumps, periodic flushing. You agree in the event  PHW authorizes an approved claim for the replacement of a water heater, we reserve the right to choose a tankless water heater as replacement.
  12. Garage Door Opener
    Included: Components and parts such as: Boards, gear and sprocket assembly, capacitor, switches.
    Excluded: Doors and anything outside the Garage Door Opener.
  13. Ceiling Fan / Exhaust Fan
    Included: Components and parts such as motor, switch, receptacle, capacitor. Note: Builders standard is used during replacement.
    Excluded: Lights.
  14. Ductwork
    Included: Components and parts from system attachment to to Plenum.
    Excluded: Crushed or collapsed ductwork, improperly sized ductwork.

E. Optional Coverage (Requires Additional Payment)

You may purchase any additional optional coverage for up to 30 days after purchase of your primary Coverage. However, optional coverage shall not commence until 30 days after PHW has received payment and the optional Coverage shall expire upon the expiration of the primary Coverage.

  1. Pool and/or Spa Equipment
    Included: Components and parts such as: Pumping System, Filtration System, and Gas Heating System. This Agreement covers the pool and/or hot tub or spa if they use shared equipment. In the event the pool and spa or hot tubs do not use shared equipment, then only one will be covered.
    Excluded: Portable units, computerized modules, leaks.
  2. Central Vacuum
    Included: Components and parts necessary to its functionality.
    Excluded: clogged pipes.
  3. Second Refrigerator
    Included: Components and parts including integral freezer such as dampers, boards, relays, switches, condensing and evaporative motors, thermostat.
    Excluded: Sealed System. Ice-maker.
  4. Well Pump
    Included: Components and parts of well pump which provides primary water source
    Excluded: Tanks, piping and electrical lines, boosters.
  5. Stand Alone Freezer
    Included: Components and parts including integral freezer such as dampers, boards, relays, switches, condensing and evaporative motors, thermostat.
    Excluded: Sealed System. Ice-maker.
  6. Limited Roof Leak
    Included: Roof leak repairs over the occupied living area of single family homes only. This Agreement covers the roof leaks only up to 5 square feet.
    Excluded: Patios, metal roofs, shingles, cracked and/or missing material, tiles, tar and gravel, flat or built-up roofs, structural leaks, gutters, downspouts, skylights, flashing, solar components, attic vents, satellite components, antennae, and chimney components, Partial roof replacement.
  7. Sump Pump
    Included: Component and part of sump pump permanently installed in the home for ground water.
    Excluded: Portable Pumps, sewer ejector pumps.
  8. Septic System
    Included: Components and parts such as Aerobic pump, sewage ejector, jet pump.
    Excluded: Tile fields and leach beds, leach lines, lateral lines, insufficient capacity, clean out, pumping.
  9. Refrigerator’s Ice Maker
    Included: Components and part such as ice maker auger /motor, thermostat.
    Excluded: Stand alone ice maker, dispenser, valves, and water line.
  10. Lawn Sprinkler
    Included: Components and parts limited to computerized module/timer.
    Excluded: Lack of pressure, batteries, heads.
  11. Water Softener
    Included: Components and parts of basic single water softener unit.including central head assembly.
    Excluded: Any and all treatment, purification, odor control, iron filtration components and systems; discharge drywells; inadequate pressure; failure due to excessive water pressure or freeze damage; failures due to mineral and/or sediment; resin bed replacement and salt; leased or rented units; softening agents.
  12. Septic Tank Pumping
    Included: The septic tank will be pumped once during the Agreement term if the stoppage is due to septic back up only. Coverage applies to main line stoppages and/or clogs and must have existing access or clean out. Coverage can only become effective if a septic certification was completed within 90 days prior to close of sale. We reserve the right to request a copy of the certification prior to service dispatch.
    Excluded: The cost associated with locating or gaining access to the septic tank or sewer hook-ups nor do we cover the cost of installing cleanouts or hook ups if they do not already exist; disposal of waste; chemical treatments of the septic tank or sewer lines; leach beds; leach lines; lateral lines; tanks; cesspools; mechanical pumps and/or systems. We will pay no more than $200 per contract term for access, diagnosis, repair; and pumping.
  13. Plumbing and Lighting Fixtures
    Included: Faucets filter, showers head, shower arm, smoke detector, light fixtures, Cartridges.

F. Limitations of Liability

  1. In the event this section conflicts with any other provisions in this Agreement, this section shall be controlling.
  2. Please allow up to 7 business days for funds to be processed and transferred by your financial institution to PHW. You agree that once you place the order and your payment has been processed by your financial institution to PHW, You will abide and be bound by the terms listed in this agreement.
  3. We have the sole right to determine whether a covered item will be repaired or replaced. We are not responsible for upgrades, components, parts, or equipment required due to the incompatibility of the existing equipment with the replacement system or appliance or component or part thereof or with new type of chemical or material utilized to run the replacement equipment including, but not limited to, differences in technology, refrigerant requirements, or efficiency as mandated by federal, state, or local governments. If parts are no longer available, we will offer a cash payment in the amount of the average cost between parts and labor of the covered repair. We reserve the right to locate parts at any time. We are not liable for replacement of entire systems or appliances due to obsolete, discontinued or unavailability of one or more integral parts. However, we will provide reimbursement for the costs of those parts determined by reasonable allowance for the fair value of like parts and negotiated cost for service. We reserve the right to rebuild a part or component, or replace with a rebuilt part or component.
  4. We are not liable for any damages that result from a Service Contractor’s service, delay in providing service or failure to provide service. We are not liable for any incidental, consequential, special, and/or punitive damages, whether caused by negligence or any other cause, and you agree to waive any and all claims for such damages, arising from, resulting from or related to any Service Contractor’s service, delay in providing service or failure to provide service, including, but not limited to, damages, resulting from delays in securing parts and/or labor, the failure of any equipment used by an independent Service Contractor, labor difficulties, and/or the negligent, tortuous and/or unlawful acts or omissions of any independent Service Contractor.
  5. PHW reserves the right to revise Terms of Service at any time and users are deemed to be apprised of and bound by any changes to these Terms of Service.
  6. All limits discussed are set to one occurrence per coverage criteria. The following are not included during the contract term, malfunction or improper operation due to rust or corrosion of all systems and appliances, malfunction of systems and appliances that are outside the average life expectancy, previous repair, cranes, disposal of systems and or appliances, installation and collapsed ductwork, known or unknown pre-existing conditions, deficiencies and/or defects, Acts of Nature, foundation and any beams of the covered home, any system or appliance that has malfunctioned as a result of the manufacturer’s defect, recall and/or defective materials or parts.
  7. This policy covers mechanical breakdowns, it does not cover shelves, door handles, doors, hinges, knobs and buttons, door seals, refrigerant, damage caused by refrigerant leaks and leak searches, displays, latches, timers, leveling equipment, clogged drains or lines, cosmetic issues, gaskets, lights, noise, valves, dispensers, exchanger of heat, installation, electrical failures, upgrades, compressor, solar systems and components.
  8. Phw does not cover not cover any item(s) if they are mismatched systems with components having incompatible capacity ratings; modified from the original manufacturer design or application; items determined to be defective by the Consumer Product Safety Commission or the manufacturer and for which either has issued, or issues, a warning or recall, use of improper materials and/or formulas, manufacturing process or any other manufacturing defect; improperly installed; or below the slab or basement floor of the home; or located outside the perimeter of the main foundation (i.e., outside the outer load bearing walls of the structure with the exception of central air conditioning unit) or unless specifically covered with Optional Coverage purchased for items outside the main perimeter.
  9. Please note PHW is NOT Maintenance Company or a Residential Service Provider of Household systems, components and appliances. It is the responsibility of the Customer to service and maintain all systems in accordance with the manufacturer’s recommendations. FAILURE TO FOLLOW THE MANUFACTURER’S MAINTENANCE SCHEDULE AND RECOMMENDATIONS MAY VOID YOUR PHW WARRANTY FOR THAT COMPONENT, SYSTEM AND/OR APPLIANCE. IF AN APPLIANCE OR SYSTEM IS FOUND TO BE IN A LACK OF MAINTENANCE, THAT APPLIANCE OR SYSTEM WILL NOT BE COVERED.
  10. This Agreement does not cover any systems, appliances and/or services relating to hazardous or toxic material including, but not limited to, acids, asbestos, lead and lead based products, red-tagged units, gas leaks,carbon monoxide leaks, and any other hazardous contaminants. This Agreement does not cover any systems or appliances that have had previous repair or that require repair as a result of improper installation, previous repair, damage caused by any construction activity, improper wiring, inadequate or lack of capacity, power failures, power surges, overloads, missing parts, failure to properly maintain, failure to properly clean,rust, corrosion, neglect, misuse, corrosion, rust, sediment and any modification to the system or appliance.
  11. PHW is not liable for the repair or replacement of commercial grade equipment, nor professional series or like appliances such as, but not limited to, Sub Zero, Viking, Wolf, Bosch, Jenn-Air, GE Monogram, Thermador, Miele, Samsung, LG and other premium brands.
  12. PHW is not liable for repair or replacement of conditions resulting from the absence of model or serial numbers fixed onto the system, component, or appliance and if parts cannot be located because of the absence of said model or serial numbers.
  13. PHW will not be responsible for matching a system or appliances color, brand, or dimensions and only is responsible for repairing and/or replacing systems or appliances of similar capacity and efficiency. The following guidelines will be implemented to provide a repair/replacement allowance. For all heating or cooling equipment (hvac), appliances, plumbing and electrical the repair/replacement total allowance is up to $3,000. For all additional coverage options/ add-ons – the repair/replacement allowance is $400. If Freon coverage is selected as an option the limit is $10 a lb and/or a maximum of $200 if exceeding 20 lbs.
  14. PHW will not cover any repair, replacement, installation, or modification of any covered system or appliance arising from a manufacturer’s recall or defect of said covered items, nor any covered item while still under an existing manufacturer’s, distributor’s, or in-home warranty even if the part questioned is not under said warranty.
  15. In the event we authorize or request you to contact an independent service contractor to perform a covered service, we will provide reimbursement for an authorized amount of the cost you incur for the repair or replacement services at PHW negotiated cost for similar service. Acceptable proof of the repair and your actual itemized costs must be provided to and approved by us before any reimbursement will be paid. We are not responsible for expenses you incur without our express consent. We will not reimburse you for any costs associated with unauthorized repairs or work performed by unauthorized contractors.

G. Dispute Resolution

In the event of a dispute over a claim or coverage, you agree to file a written claim with Us and allow Us sixty (60) calendar days to respond to the claim. The parties agree to mediate in good faith, before resorting to mandatory arbitration, in the state of Delaware. Except where prohibited, if a dispute arises from or relates to this Agreement or its breach, and if the dispute cannot be settled through direct discussions You agree that:

  1. Any and all disputes, claims and causes of action arising out of or connected with this Agreement shall be resolved individually, without resort to any form of class action, multiple plaintiff, representative, or similar proceeding (“Class Action”). The parties expressly waive any ability to maintain any Class Action in any forum. The arbitrator shall not have authority to combine or aggregate similar claims or conduct any Class Action nor make an award to any person or entity not a party to the arbitration. Any claim that all or part of this Class Action waiver is unenforceable, unconscionable, void, or voidable may be determined only by a court of competent jurisdiction and not by an arbitrator. THE PARTIES UNDERSTAND THAT THEY WOULD HAVE HAD A RIGHT TO LITIGATE THROUGH A COURT, TO HAVE A JUDGE OR JURY DECIDE THEIR CASE AND TO BE PARTY TO A CLASS OR REPRESENTATIVE ACTION. HOWEVER, THEY UNDERSTAND AND CHOOSE TO HAVE ANY CLAIMS DECIDED INDIVIDUALLY, THROUGH ARBITRATION.
  2. Any and all disputes, claims and causes of action arising out of or connected with this Agreement (including but not limited to whether a particular dispute is arbitrable hereunder) shall be resolved exclusively by the American Arbitration Association in the state of Delaware under its Commercial Mediation Rules. Controversies or claims shall be submitted to arbitration regardless of the theory under which they arise, including without limitation contract, tort, common law, statutory, or regulatory duties or liability.
  3. Any and all claims, judgments and awards shall be limited to actual out-of-pocket costs incurred to a maximum of $1500 per claim, but in no event attorneys’ fees
  4. Under no circumstances will you be permitted to obtain awards for, and You hereby waive all rights to claim, indirect, punitive, incidental and consequential damages and any other damages, other than for actual out-of-pocket expenses, and any and all rights to have damages multiplied or otherwise increased. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement, shall be governed by, and construed in accordance with, the laws of the State of Delaware, U.S.A. without giving effect to any choice of law or conflict of law rules (whether of the State of Delaware or any other jurisdiction), which would cause the application of the laws of any jurisdiction other than the State of Delaware.

H. Severability

If any provision of this Agreement is found to be contrary to law by a court of competent jurisdiction, such provision shall be of no force or effect; but the remainder of this Agreement shall continue in full force and effect.

I. Transfer of Agreement and Renewals

  1. If your covered property is sold during your coverage period you must notify PHW of the change in ownership and submit the name of the new owner by Postal mail or email in order to transfer coverage to the new owner.
  2. You may transfer your coverage to the new owner without a fee.
  3. Your coverage may be renewed by you at the option of PHW. In the event that this occurs, you will be notified of the prevailing rate and terms for renewal.
  4. Should you select the monthly payment option and PHW elects to renew your coverage, PHW will notify you of a change in applicable rate and terms of renewal during the tenth month of your annual coverage period. You will automatically be renewed for a monthly coverage period unless you notify PHW in writing 30 days prior to the expiration of your coverage period. Your first payment for the next coverage period will be construed as authorization for month-to-month credit card or electronic charges.

J. Cancellation

  1. This Agreement may be cancelled by PHW for the following reasons:
    1. Nonpayment or dispute of contract fee.
    2. Nonpayment of Service Fee / Deductible
    3. Fraudulent conduct , defamation of character, harmful or threatening acts to PHW or any of its employees / affiliates, harassment by You.
    4. Fraud or misrepresentation of facts material by You to the issuance of this contract.
    5. Coverage may be cancelled by PHW if the correct square footage, including finished and non-finished spaces, was not reported to PHW and was not appropriately ordered.
    6. A change in laws or regulations that has a material effect on the business of PHW or PHW’S ability to fulfill its obligations under this agreement.
  2. You may cancel this Agreement within the first thirty (30) days of the order date for a full refund of the paid contract fees, less any service costs incurred by us.
  3. Mutual agreement of us and you. If this Agreement is canceled after thirty (30) days, you shall be entitled to a pro rata refund at the standard contract fee rate for the unexpired term, less a $75 administrative fee and cancellation fee, and any service costs incurred by us. If we have provided services and the amount of the service costs incurred by us is greater than the contract fees paid, then no refund will be due to you. All cancellation requests must be submitted in writing via email or post mail.