Coverage Terms & Conditions

Home Warranty Plans

This document sets forth the entire agreement between Warranty Global Group, Inc. and the Contract holder. Warranty Global Group, Inc. is contractually obligated to You to provide service under this Contract where in accordance with, and as allowed by, state law. Please refer to Your Certificate of Coverage for applicable state disclosures. This is not an insurance policy. Obligations under this Contract are provided by Warranty Global Group Inc.


SECTION 1. IMPORTANT INFORMATION

It is hereby agreed that Warranty Global Group, Inc., in consideration of the fee(s) paid, will provide coverage for the authorized repair or replacement of the Covered Items described in this Contract, when such Covered Items become inoperative due to Operational Failure during coverage periods. This Contract is subject to the limitations and provisions as set forth herein and any amendatory endorsements attached hereto. The Administrator assumes no obligation or liability that does not appear in this Service Contract. Please refer to the certificate of coverage for Your name, covered Residence address, coverage dates, coverage plan, options, and fees.


SECTION 2. DEFINITIONS

  • Administrator, We, Us, Our: Warranty Global Group, Inc.
  • Contract, Service Contract: This document in its entirety.
  • Cost(s): The actual reasonable cost for repair or replacement of Covered Items or their Parts and Components when the repair or replacement is made necessary by Operational Failure during the Contract term.
  • Covered Item(s): Property subheadings listed in “SECTION 3. COVERED ITEMS” and “SECTION 4. OPTIONS,” for which this Contract provides coverage, subject to the terms and conditions herein.
  • Emergency Repairs: Repairs necessary outside Our business hours that are due to the loss of heating or cooling, loss of plumbing, substantial loss of electrical service, or any other conditions that render a dwelling uninhabitable.
  • Exterior: The area outside of the Perimeter.
  • Interior: The area inside of the Perimeter.
  • Operational Failure(s): A mechanical breakdown due to normal wear, tear, and use, resulting in the failure of Parts and Components.
  • Parts and Components: The elements of any Covered Item of the Residence that either are located within the Interior, are considered part of the Interior, or belong to covered pool/spa equipment, water well pumps, or air conditioning units.
  • Perimeter: The internal boundary of the Residence that ends at the external walls to the sides, the roof above, and the foundation line, slab, or lowest man-made flooring of the premises below.
  • Renewed Contract: A Contract for a Residence that has been covered by a previous Warranty Global Group, Inc. contract.
  • Residence: The single-family dwelling covered by this Contract, which is used for residential purposes only. A dwelling unit is a residential area that contains no less than the following: sleeping quarters, a bathroom, a kitchen area, and a separate entryway to the unit (cannot exceed 5,000 total livable square feet per residential dwelling unit, without prior approval). Any unit that does not meet the above defined minimums or exceeds the maximums shall not be covered. The Residence includes the primary physical structure, as well as attached garages that share a connecting wall with the dwelling. A Residence may be a condominium unit.
  • You, Your: The Contract holder.

SECTION 3. COVERED ITEMS

If any Covered Items in the list below suffers an Operational Failure during the term of this Service Contract, We will pay for the repair or replacement of the Covered Item, subject to the terms and conditions herein.

3.1 CENTRAL HEAT SYSTEM

COVERED: Furnace unit and heat pump, accessible ductwork, fireplace gas burner unit, and thermostat controlling equipment for furnace and air conditioner, permanently mounted non-ducted heaters, humidifiers, dehumidifiers, electronic air filtering devices, and attic and exhaust fans.

Home Warranty Plan Options | US Home Guard

NOTE: We will pay no more than $2,500.00 for this Covered Item per Contract term. Additionally, We will pay no more than $1,500.00 per Contract term for access, diagnosis, and repair or replacement of any glycol system, self-contained package unit, or domestic hot water system (boiler), or geo-thermal system. For failures due to rust, sediment, or corrosion:

(a) We will pay no more than $1,000.00 per Contract term, (b) no coverage will be provided for units older than thirteen (13) years, measured from the unit manufactured date, and (c) no coverage will be provided within the first thirty (30) days from the effective date of this Contract.

NOT COVERED: All coal and wood burning equipment, conversions from coal to gas or coal to oil systems, oil storage tanks, fuel oil lines, space heaters, chimneys, fireplaces, flue liners, air filters, gas logs.

3.2 CENTRAL AIR SYSTEM

COVERED: Central air unit not to exceed 5 tons, refrigerated and evaporative cooler, heat pump(s), water cooling storage tanks, and thermostat controlling equipment for furnace and air conditioner, and attic and exhaust fans.

NOTE: We will pay no more than $2,500.00 for this Covered Item per Contract term. We will pay no more than $20.00 per pound for refrigerant. Additionally, We will pay no more than $1,500.00 per Contract term for access, diagnosis, and repair or replacement of any self- contained package unit or geo-thermal system. For failures due to rust, sediment, or corrosion:

(a) We will pay no more than $1,000.00 per contract term, (b) no coverage will be provided for units older than thirteen (13) years, measured from the unit manufactured date, and (c) no coverage will be provided within the first thirty (30) days from the effective date of this Contract.

NOT COVERED: Well pump and well pump components for geothermal or water source heat pumps.

3.3 DUCTWORK

COVERED: Ducts from heating or cooling unit to point of attachment at registers or grills, flex ductwork, and costs related to accessing ductwork through unobstructed walls, ceilings, or floors.

NOTE: In the event of a covered claim requiring ductwork, We will cover costs to return the access opening to a rough finish condition. We will pay no more than $500.00 per Contract term for concrete encased ductwork.

3.4 PLUMBING

COVERED: Piping: gas, hot and cold water, drain and waste lines, vent, branch, and riser lines. Plumbing Component Parts: fixtures, faucets, shower heads, toilets, and tubs, as well as wax ring seals, trip levers, risers, and in-line shut-off or supply valves leading into sinks, toilets, or tubs. Sump Pumps: all Parts and Components of the primary unit, except those listed below. Whirlpool: motors and jets. Sewage Removal Pump: All Parts and Components, except those listed below. Coverage is limited to one (1) ejector pump unit or one mounted grinder pump unit only. Domestic Water Softeners: All Parts and Components. Other: costs related to clearing septic and drain line stoppages, and costs related to accessing plumbing systems through unobstructed walls, ceilings, or floors.

NOTE: In the event of a covered claim requiring plumbing work, We will cover costs to return the access opening to a rough finish condition. We will pay no more than $500.00 per Contract term for concrete encased plumbing. We will pay no more than $500.00 per Contract term for repairs or replacements due to polybutylene line leaks. If a sewer cable can clear a septic or drain line stoppage through an existing, accessible ground-level clean-out point, such as the main line, removable p-trap (branch line), or the drain line to the street, We will cover the cost of the sewer cable service, subject to the terms and conditions herein.

NOT COVERED: Water filters; waste water filters; water purification systems; lines, pipes, or connectors belonging to covered pumps; any water well system; shower base pans; shower enclosures or doors; sinks; tubs; instant hot water devices; drain tile; iron filters; lawn sprinkler systems; drain fields; leach beds; cesspools; energy conservation unit flues and vents; saunas; standalone jacuzzi-type tubs; whirlpool tubs; main body of bathtub enhancement units; main body; caulking; grout; tiles; aerator systems for treating sewage and aerator system components; septic or drain-line stoppages that cannot be cleared with a sewer cable through an existing, accessible ground-level clean-out point; or failures due to screws, nails, vegetation roots, rust, sediment, or corrosion.

3.5 ELECTRIC

COVERED: Wiring main service panel, sub-panels, receptacles, outlets, switches, fuse boxes, breakers, and electric wiring to central heating and cooling systems, doorbell, and permanently mounted lighting fixtures and ceiling fans.

NOTE: We will pay no more than $500.00 per Contract term for repairing or replacing the wiring main service panel.

NOT COVERED: Fixtures commonly known as chandeliers; audio/video surveillance systems; intercom systems; monitors working in conjunction with the doorbell system; telephone wiring; hobby items; generators or other items that are gas-fueled, oil fueled, battery-powered, or considered antique (50 years of age or older).

3.6 WATER HEATERS

COVERED: Electric, Gas, or Tankless Water Heaters: All Parts and Components.

NOTE: For failures due to rust, sediment, or corrosion, no coverage will be provided within the first thirty (30) days from the effective date of this Contract.

NOT COVERED: Oil, solar, or solar-assisted water heating units; units with a capacity of over 100 gallons.

3.7 KITCHEN REFRIGERATOR

COVERED: All Parts and Components, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Icemakers, ice crushers, water and ice dispensers, shelves, thermal shells, and doorliner.

3.8 DISHWASHER

COVERED: All Parts and Components, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Rollers.

3.8 FOOD WASTE DISPOSER

COVERED: All Parts and Components. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Stoppage, damage, or failure caused by material other than food.

3.9 COOKING RANGE/OVEN/COOKTOP

COVERED: All Parts and Components, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Box, door glass, lights, rotisseries, timers that do not affect the functions of the oven, sensi-heat burners, filters, and magnetic induction ranges/ovens/cooktops. Cracking of glass-top ranges or cooktops.

3.10 TRASH COMPACTOR

COVERED: All Parts and Components, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Removable buckets.

3.11 OVER THE RANGE OR BUILT-IN MICROWAVE

COVERED: All Parts and Components, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Door glass, cavity lining, clocks, lights, shelves, rotisseries, meat probe assemblies, countertop microwaves.


SECTION 4. OPTIONS

The following options are available at the time this Service Contract is sold. Desired options must be selected at the time of sale for corresponding benefits to apply. Please see descriptions below.

4.1 CLOTHES WASHER AND DRYER

COVERED: All Parts and Components, except those listed below.

NOT COVERED: Venting, lint screens, rails, plastic mini-tubs, soap dispensers, and filter screens.

4.2 ALL SWIMMING POOL/SPA EQUIPMENT OPTIONS

COVERED: All Parts and Components of the heating, pumping and filtration system, blower, pool sweep motor, and pump. The Salt Water Pool Equipment option provides coverage for the salt water pool circuit board and cell.

NOTE: The Swimming Pool/Spa Equipment option provides coverage for a swimming pool and any covered Parts and Components that it shares with a spa. The Salt Water Pool Equipment option provides coverage for the salt water pool circuit board and cell only. If Your pool is a salt water pool, You must select and pay for both the Swimming Pool/Spa Equipment option and the Salt Water Pool Equipment option for full coverage of the components listed above to apply to Your salt water pool. If Your spa is a stand-alone spa, You must select and pay for the Stand-Alone Spa Equipment option for coverage to apply to Your stand-alone spa.

NOT COVERED: Lights; liners; concrete encased or underground electrical wiring; plumbing or gas lines; any mechanism used in association with a waterfall, fountain, or any other attachment not associated with the primary function of the covered equipment; structural defects; solar equipment; jets; fuel storage tanks; built-in or detachable cleaning equipment including pop-up heads, turbo valves, and stand-alone pool cleaning devices.

4.3 STAND-ALONE ICE MAKER

COVERED: All Parts and Components of a freestanding or under the counter ice maker that is not incorporated into a refrigerator or freezer, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Ice crusher, plastic buckets, thermal shells, doorliner.

4.4 REFRIGERATOR ICE MAKER

COVERED: All Parts and Components of an ice maker that is incorporated into a refrigerator or freezer, except those listed below. Coverage is limited to one (1) kitchen unit only.

NOT COVERED: Ice crusher, plastic buckets, thermal shells, doorliner.

4.5 ADDITIONAL REFRIGERATOR OR FREEZER

COVERED: All Parts and Components, except those listed below. Coverage is limited to one additional refrigerator or freezer unit, which is separate from the kitchen refrigerator covered in 3.7.

NOT COVERED: Icemakers, ice crushers, shelves, water and ice dispensers, thermal shells, doorliners, or walk-in freezers.

4.6 GARAGE DOOR OPENER

COVERED: All Parts and Components, including touch pads, transmitters, hinges, and springs.

NOT COVERED: Remote controls.

4.7 CENTRAL VACUUM

COVERED: Motor, relay, switches, and wiring.

NOTE: We will pay no more than $400.00 per Contract term for access, diagnosis, and repair, or replacement.

NOT COVERED: Attachments, hoses, panels, powerhead assembly, secondary units, and structural components. Clogged lines.

4.8 WATER WELL PUMP

COVERED: All Parts and Components of the pump, motor, tank, and shaft.

NOTE: We will pay no more than $1,200.00 per Contract term for access, diagnosis and repair, or replacement.

NOT COVERED: Above or underground piping, cable or electrical lines leading to and from the well pump, including those that are located within the well casing, well casings, pumps that service buildings other than the Residence, pressure switches not located on the pump-booster pumps, well pump and all well components for geothermal or water source heat pumps.


SECTION 5. LIMITS OF LIABILITY

The total of all benefits that will be paid under this Service Contract will not exceed $10,000.00. Coverage is limited to $1,000.00 per Covered Item, except as specifically indicated otherwise in this Contract. There may be other monetary limits for specific Covered Items or specific Parts and Components of those Covered Items, as noted in the appropriate section. Costs for any Covered Item will not exceed any specified limits, whether the Covered Item is repaired or replaced. If We decide to replace a Covered Item, yet You request that Covered Item be repaired instead, We will honor that request, but the individual coverage limit for that Covered Item will be considered met for the remainder of the Contract term, once the requested repair is complete. Once the aggregate limit of liability for the life of this Contract has been reached, this Contract and all benefits, including transfer and cancellation rights, terminate.


SECTION 6. WHAT THIS CONTRACT DOES NOT COVER

Property, equipment, and services not specifically listed as covered (or listed as not covered) are not covered. In addition, this Service Contract does not cover the following:

  1. Covered Items or Parts and Components that were not in proper working order on the Contract sale date (i.e. pre-existing conditions).
  2. Costs of correcting faulty workmanship, improper installation, or any failure or damage caused by improper installation to any Covered Item by any person or party, either before or after issuance of this Contract.
  3. The costs of disposing of any replaced Covered Items or Parts and Components, coolant recovery fees, or other environmental fees or charges.
  4. The cost of correcting any code violations (local, state, or federal), upgrades to any Covered Item made necessary because of code violations, or costs of obtaining permits.
  5. Defects in any Covered Item or their Parts and Components due to the manufacturer’s errors or improper construction.
  6. Any Operational Failure covered by any other collectible insurance, homeowner insurance policy, warranty, guarantee, or other coverage available to You.
  7. Any Operational Failure that occurred prior to the non-timely receipt of payment of Contract fees.
  8. Any repair or replacement that has not received prior authorization from the Administrator. This exclusion does not apply to Emergency Repairs.
  9. Damage caused by fire; wind; freezing; hail; sleet; snow; ice or water back-up due to ice; explosions; riots; civil commotion; aircraft; vehicles; smoke; vandalism; malicious mischief; glass breakage; theft; burglary; falling objects; weight of ice or snow; discharge of water or steam from plumbing, heating, air conditioning systems, or appliances; war or any act of aggression; acts of God; accidents due to negligence or misuse; nuclear contamination; flood; surface water; waves or tidal waves; earthquakes; landslides; mud flows; seepage; rot; dry rot; condensation; lightning; or destruction caused by rodents, termites, insects or vermin.
  10. Damage that does not cause Operational Failure to any of the Parts and Components of Covered Items.
  11. Failure due to rust, sediment, or corrosion, except as otherwise indicated.
  12. Electrical surges, excessive or inadequate voltage, power failure or shortage, electricity generators, or damage caused by electricity generators.
  13. Conditions of excessive, low, reduced, or insufficient water pressure or water flow; water line blockages; mechanical failures resulting from lack of water; repair of piping damage caused by screws, nails, or vegetation roots; digging new/deeper wells or redrilling wells; shared water wells; hydro-jetting; discolored or impure water.
  14. Any systems damage or malfunction due to lack of capacity, failure to maintain the temperature in the Residence above freezing, or incorrect use or contamination of fuel or energy.
  15. Damage to the physical structure of the Residence including, but not limited to, bearing walls, walls, roof, roof supports, structural floor base, foundation or slabs, and ceilings except where specifically identified as covered.
  16. Costs associated with cosmetic texture, paint, or tile work or any other repairs to walls, floors, or ceilings, beyond returning them to a rough finish condition after repairs to plumbing or ducts.
  17. Fees associated with new installation hook-ups to city or municipal sewage systems or other utilities.
  18. Covered Items or any Parts and Components that have been abused, misused, or used to perform unusual or abnormal functions.
  19. Cabins, boarding houses, dormitories, fraternities, sororities, other cooperatives, mobile homes not permanently attached and without metered utilities, and apartments with written leases less than one (1) year.
  20. Any incidental or consequential property damage, including but not limited to damage to automobiles or clothing.
  21. Lost time, lost data, or failure to provide timely service due to conditions beyond Our control, including, but not limited to, part or equipment delays and labor difficulties.
  22. Any of the following, except as otherwise indicated elsewhere in this Contract: Cabinetry, light bulbs, plastic, porcelain or enamel parts, finishes, knobs, dials, hinges, lock and key assemblies, handles, racks, baskets, probes or rotisseries, or trim or other appearance parts.
  23. Portable units.
  24. Temporary repairs not intended to fully resolve the cause of Operational Failure.
  25. System resets, maintenance, maintenance inspections, cleaning, lubrication services, pumping of septic tanks, capacity increases for any system, or adjustments of covered property.
  26. Food spoilage.
  27. Commercial structures or space and any properties where commerce occurs.
  28. Commercial equipment and equipment that services commercial space, even if it simultaneously services covered residential unit(s).
  29. Leased, rented, or custom-built systems or equipment.
  30. Costs associated with the installation or delivery of kitchen appliances.
  31. Equipment, Covered Items, or systems that are owned by a condominium association, designated for use in condominium common areas, or that serve more than one (1) condominium unit.
  32. Detached garages, garages not sharing a wall with the dwelling, or garages attached to the dwelling only by roofing.
  33. Out buildings, site improvements, or any grounds surrounding the Residence.
  34. Any Exterior system or equipment, including the Exterior of condominiums, as well as any systems or equipment located outside the Perimeter. This exclusion does not apply to covered pool/spa equipment, water well pumps, or air conditioning units resting on man-made flooring outside the Perimeter.

SECTION 7. OBTAINING SERVICE

7.1 REQUIRED NOTICE

You shall give notice to Us of any occurrence of any failure that may be covered by Us within 48 hours of discovery. You shall take every precaution to protect the property from further damage until the necessary repair or replacement is authorized by Us and is completed. You must notify Us of any Operational Failure prior to actual repair or replacement. We shall not be liable for any Costs unless said notice is given prior to the expiration of Your coverage, regardless of when the Operational Failure occurred.

7.2 REQUESTING SERVICE

When service is needed, please call 1-866-237-4980, Monday through Friday, 8 am – 7 pm Central Standard Time. Outside of these hours or on holidays, You will be able to leave a voice mail message twenty-four (24) hours per day, seven (7) days per week. At Your discretion, You may utilize a licensed and insured service provider of Your choice. You and the repair technician shall provide Us with sufficient information as to the cause and nature of the occurrence, as well as other pertinent information relating to the claim to the best of Your knowledge and belief. This information may also include estimates relating to repair or replacement of the Parts and Components that failed. We reserve the right to request additional opinion(s). We must speak with the technician and authorize and approve all work prior to repairs for coverage to apply, except in the case of Emergency Repairs. If Emergency Repairs are necessary, You are responsible for providing authorization to the technician. In such a case, You must pay for any expenses and seek reimbursement from Us. Industry-standard overtime rates and emergency labor rates are paid at the discretion of the Administrator.

7.3 WHAT WE WILL DO WHEN A CLAIM IS REPORTED

Provided You call Us during Our regular business hours, We will attempt to contact an authorized representative and arrange a service call within two (2) business days. If You call outside Our business hours, We will begin this process within two (2) business days from the start of the next business day. We have the sole right to determine if Covered Items or any of their Parts and Components should be repaired or replaced. In the event of repairs, non- original manufacturer’s parts may be used to make repairs, at Our discretion. In the event of replacement, We will provide for replacement with Parts and Components or equipment of similar dimensions and like kind and quality, but not necessarily with the same brand, color, or custom features. If a Covered Item is non-repairable due to the Operational Failure of Parts and Components that are unavailable, We are not responsible for replacement of the entire Covered Item; We will be obligated only to make a reasonable payment based upon the value of installing comparable Parts and Components that are available, subject to any per occurrence or aggregate maximums.

NOTE: Coverage is provided under the terms and conditions of this Contract, and not according to the interpretations or opinions of the retailer, technician, or service provider. Any retailer, technician, service provider, or home inspection companies or inspection personnel are not Our agents.

7.4 DEDUCTIBLE AND SERVICE CALL FEES

For all covered repairs on each trade service call, You will pay a deductible of one hundred dollars ($100.00), or the actual cost of the repair, whichever is less, to the service provider. If a covered repair is required on the same covered property as a prior claim that occurred within the last thirty (30) days, We agree to waive Your obligation to pay this deductible for that service call. If no Operational Failure or other defect covered by this Contract is discovered or repaired during a service call, You are responsible for the entire service call fee. You will also pay the service call fee for each call dispatched in events such as the following: You fail to be present at the scheduled time of the trade service call, You cancel a call when technician is in route to Your home, or You cancel a call after the technician has already arrived at Your home. Your payment must be made prior to completion of each service call, including trade service calls where coverage was granted, excluded, limited, or denied in whole or in part. We have the option to suspend this Contract for non-payment of deductibles or service call fees until such time as payment is received.

7.5 REIMBURSEMENT REQUIREMENTS

You may be required to pay the service provider directly and seek reimbursement from Us if the service provider will not bill Us directly or in the event of Emergency Repairs performed outside Our business hours. Reimbursement requests covered under this Contract must be submitted to Us within 60 days once the claim is authorized. You must submit any documents requested, including, but not limited to, any documents showing proof of Cost or invoices showing payment. We will reimburse You for Your approved coverage within 30 days of receipt of a paid invoice from the service provider or other proof of payment acceptable to Us.

7.6 OTHER INSURANCE, WARRANTY, OR GUARANTEE

Should We deem it necessary, You shall supply Us with all requested information with regard to manufacturer warranties on all appliances and systems prior to Our payment for the repair or replacement.


SECTION 8. BUILDING CODES

Neither the cost of bringing any Covered Item up to code nor the cost of obtaining permits is a covered expense. When restoration of a Covered Item to original condition is not permitted by zoning, building codes, or any other law, or if the code requires upgrades, permits, or other non- covered fees, We will not be liable for the additional material, labor, or expenses. When code corrections are necessary prior to repair or replacement, You shall be responsible for making the corrections, and We shall have no obligations to pay for that repair or replacement until the corrections have been made. When permits cannot be obtained due to code violations, We will have no obligation to pay for repair or replacement of affected Covered Items until the violations have been remedied in full.


SECTION 9. RIGHTS TO RECOVERY

In the event of any payment under this Contract, We shall be subrogated to all of Your rights of recovery against any person or organization. Said rights shall include, but are not limited to, access to all inspection reports, listing agreements, offers to purchase and acceptance, deeds or other instruments of conveyance or transfer, and any and all oral representations made by builders or builders’ representatives. You shall provide instruments and documents and do whatever else is necessary to secure such rights. You shall do nothing to prejudice such rights. We shall not be bound to pay any Costs if You have impaired any right of recovery for said Cost.


SECTION 10. CANCELLATION

CANCELLATION BY THE ADMINISTRATOR

The Administrator may cancel this Contract for material misrepresentation or substantial breaches of contractual duties, conditions, or warranties, or for non-payment of the Service Contract price. This includes misrepresentation/fraud by You in reporting an Operational Failure or the amount of the Cost. Collusion between repair personnel and You to defraud Warranty Global Group, Inc. shall be construed as misrepresentation.

CANCELLATION BY THE CONTRACT HOLDER

You may cancel this Service Contract at any time by notifying the Administrator in writing. This notification must include Your name, address, contract number, date, and signature.

CANCELLATION PROVISIONS

If We receive Your written request to cancel this Contract within the first thirty (30) days of the covered term, We will refund the full purchase price of the Service Contract, less the cost of any claims paid. If We receive Your request to cancel this Contract after the first thirty (30) days past the Contract sale date, You will receive a pro rata refund, less the cost of any claims paid. Pro rata refunds are determined by multiplying the amount You paid for this Service Contract by the following: the number of covered days remaining on the Service Contract divided by the original number of covered days. A cancellation fee of $50 will be charged for all pro rata cancellations made by the Contract Holder. If this Contract is cancelled by Us at any time, You will receive a full refund of the price You paid for this Service Contract, less the cost of any claims paid.

NOTE: If Your Residence retains a warranty from the builder or has not been occupied prior to the Contract sale date, You will receive a full refund if cancellation occurs prior to the beginning of the Contract term. Transferred Service Contracts are not eligible for cancellation refunds.


SECTION 11. TRANSFER/RENEWAL

TRANSFERS

If ownership and legal title of the Covered Residence is transferred during the Contract term, the coverage afforded under the terms and conditions of this Contract may be transferred to the new home owner for the remainder of the Contract term, unless Your Residence retains a warranty from the builder or Your Residence has not been occupied prior to the Contract sale date. You must notify the Administrator of the transfer of ownership in writing and must include the following: a transfer fee of $50 and the name of the new owner. The assignee takes the Contract on the same terms, conditions and expiration date as the assignor. Call 1-866-445-3604 to request a transfer of coverage form; transfer of coverage will be processed once We receive this form.

NOTE: If Your Residence retains a warranty from the builder or has not been occupied prior to the Contract sale date, this Contract is not eligible for transfer to ensuing owners.

RENEWALS

This Contract may be renewed at the sole discretion of the Administrator. If the Administrator elects to renew Your Contract, You will be notified of the plan fee and terms for the renewal during the tenth month of Your Contract term. Your first payment for the next Contract term will serve as Your final authorization for another Contract term.


SECTION 12. ARBITRATION

Any controversy or claim arising out of or relating to this Contract, or breach thereof, will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. A judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.