Home Warranty Agreement - General Exclusions - Terms & Conditions

This Home Warranty Agreement, hereinafter referred to as the "Agreement", is marketed through HMS National, Inc. The Agreement is issued by the entity listed for your state in Section VIII. 10. of this Agreement. Such entity is hereinafter referred to as the "Issuing Company", or "we", "us", and/or "our'. The owner of the home covered by this Agreement is hereinafter referred to as "you" and/or "your". This is a Home Warranty Agreement, not an insurance policy.

This Agreement is intended to provide protection against the cost of repairing certain types of breakdowns of specific items in your home. Please read the Agreement carefully. Coverage includes only certain mechanical breakdowns of the specific items listed as covered on your Agreement Coverage Summary and excludes all other breakdowns and /or items. The Agreement Coverage Summary is attached to and made a part of this Agreement Coverage is subject to the limitations and conditions specified in this Agreement.

1. When repair or replacement services covered by this Agreement are required, you must telephone us at 1-800-432-1033 or submit a claim through the web site www.HMSnet.com .You must notify us immediately upon the discovery of a mechanical failure. Notice of any malfunction or failure must be made to us prior to the expiration of the term of the Agreement during which the failure occurred.

2. We will provide you with a referral to an authorized contractor. We will use reasonable efforts to provide a referral to a service contractor within two (2) hours after the service request is received during normal business hours and within twenty-four (24) hours for requests received after normal business hours and on weekends or holidays. In the event we determine, at our sole discretion. that there is an emergency situation requiring expedited service. we will make reasonable efforts to expedite service. We will determine, at our sole discretion, which repairs constitute an emergency and will give consideration to covered malfunctions that affect the habitability of the dwelling.

3. We have sole authority to select authorized contractors. All repair and/or replacement work covered by this Agreement must be performed by an authorized contractor and approved by us in advance. We are not responsible for expenses you incur without our express consent. You will not be reimbursed for any costs associated with unauthorized repairs or work performed by unauthorized contractors.

4. This Agreement includes a deductible charge, listed on your Agreement Coverage Summary, that you must pay per trade on each service call made towards the covered portion of any claim. When a covered claim requires more than one trade to complete the covered repair/replacement only one deductible charge will be required. Trades include appliance, cooling. heating, electrical, plumbing, and any other trade specifically required to service items listed on your Agreement Coverage Summary. You will be responsible for and shall pay the authorized contractor directly for the service call and for actual work performed and/or items installed, up to the amount of the deductible at the time of visit(s), in a manner acceptable to the authorized contractor. Any amounts due for services performed or parts installed that are not covered under the terms, conditions and provisions of this Agreement are also your responsibility and shall be paid directly to the service contractor. A service call includes, without limitation, the action of inspecting. diagnosing, and/or performing service for the repair or replacement of a malfunctioning item.

5. You agree to make premises available during normal business hours for the authorized contractor to effect needed repairs you requested. You agree to pay us and/or our authorized contractor any service charge and additional charges assessed by our authorized contractor resulting from your failure to provide access and/or for missed appointments.

6. Should any building or zoning permits be necessary, you are responsible for obtaining these permits and the cost associated with these permits.

7. In certain situations, we may elect to replace a covered item rather than repair it. The decision to replace rather than repair items is solely our option. Should we choose to replace an item, the replacement will be the base model that meets all applicable federally mandated minimal manufacturers’ standards, performs the same primary function, and has a capacity comparable with the covered item, when available with domestically assembled units. With respect to kitchen/laundry appliances, we will make reasonable efforts to provide replacement items of similar mechanical capabilities and/or efficiency of the original unit, when available. We are not liable to provide exact match in dye, lot, type or brand. When replacing systems or appliances, we will be responsible for the installation of the replacement item but not for the cost of the construction, modifications, carpentry or transitional work made necessary in order to accommodate the replacement. nor for any costs to upgrade or modify items for any reason.

8. In certain situations, we may give you the option to elect to receive a repair/replacement credit or cash payment (net of deductible) in lieu of providing a repair. In such cases, the amount of such credit shall be equal to the lesser of the approved cost of repair or the estimated cost of replacement. If you elect a credit to our authorized contractor, we will pay that amount directly to the authorized contractor after the work has been completed. If you elect the cash payment, you must supply documentation supporting that the item in question has been purchased/replaced prior to receiving the cash payment. The amount of the approved cost of repair or replacement will be established by us at our sole discretion. Should we determine that we require replacement and you instead choose to effect a repair, that item is excluded from further coverage under this Agreement and subsequent renewals.

9. We reserve the right to obtain, at our expense, a second opinion by an authorized contractor prior to determining eligibility for coverage.

1. This Agreement provides coverage for the mechanical failure of only those items listed as covered on your Agreement Coverage Summary and only to the extent described herein. This Agreement does not cover any items not specifically named as covered on your Agreement Coverage Summary.

2. Items are not covered if they are. mismatched (systems with incompatible components with different capacity ratings); modified from the original manufacturer design or application; under factory recall due to manufacturer defect; improperly installed; or located outside the perimeter of the main foundation (i.e.. outside the outer load bearing walls of the structure) or below the slab or basement floor of the home (with the exception of central air conditioning units, main electrical panels mounted on outside walls; pool; spa; sump pump; and well pump).

3. This Agreement is intended to cover only repairs and/or replacements due to mechanical failure attributable to ordinary wear and tear. Accordingly, the Agreement does not cover failures which may result from other causes, such as without limitation: abuse or misuse; improper installation; improper or insufficient maintenance; neglect or misuse; lightening strikes; missing parts; animal, pet and/or pest damage; power failure; power surge; fire; casualty; acts of God; structural and/or property damage; flood; smoke; earthquake; freeze damage; accidents; war; nuclear explosion. reaction. radiation or radioactive contamination; insurrection; riots; vandalism; or intentional destruction of property.

4. This Agreement does not cover upgrading or making modifications to items due to. but not limited to. the following reasons: capacity (over or undersized); dimensional or design change; conditions of insufficient or excessive water pressure; conditions of inadequate wiring capacity; circuit overload; power failure and/or surge; failure to meet building code(s); zoning requirements; utility regulations; or failure to comply with local, state or federal laws or regulations.

5. This Agreement does not cover any costs associated with any upgrades or modifications to comply with Federal. state, and local law, code. regulation. or ordinance. Such costs are your responsibility.

6. This Agreement does not cover: fees associated with the removal and disposal of old systems, appliances and components; or losses or other costs, including. but not limited to, disposal fees arising from hazardous or toxic material, asbestos, freon or freon reclamation.

7. This Agreement does not cover repair or replacement of systems, appliances or components classified by the manufacturer as commercial-grade. In no event shall we be liable for claims in excess of $1000 in the aggregate per commercial-like or ultra-premium appliances such as, but not limited to, brand names such as Sub-Zero, GE Monogram Series, Thermador, JENN-AIR, Viking, and Delfield (individual trademarks are owned by the brand names' company).

8. This Agreement does not cover (a) fees associated with use of cranes or other lifting equipment required to service roof-top heating or air conditioning units; or (b) excavation or other charges associated with gaining access to the well pump; or (c) electronic computerized energy management systems or devices. or lighting and/or appliance management systems.

9. This Agreement does not cover ductwork with the sole exception of ductwork that is exposed and readily accessible to service a mechanical failure of a covered air conditioning or heating claim. The following additional exclusions apply: asbestos insulated ductwork; concrete encased or inaccessible ductwork; crushed/collapsed ductwork; ductwork damaged by moisture, water, pests and/or animals; insulation; registers, grills and dampers; underground ductwork. Inaccessible ductwork refers to ductwork that is used in central heating and/or air conditioning systems that is not exposed and cannot readily be accessed for replacement or repair due to design and installation obstacles such as, but not limited to, permanent partitions, chimneys, etc., and ductwork embedded in floors, walls or ceiling.

10. We are not liable for charges incurred to gain access to a system, appliance or component in situations where there is not adequate capacity or space for serviceability caused by, but not limited to, walls, floors, ceilings, permanently installed fixtures, cabinets, or personal property. In the event it is necessary to open walls, floors, or ceilings, or to move such fixtures, cabinets, or personal property to perform a diagnosis or service, we are not responsible for restoring such openings, items, or property.

11. We are not responsible or liable for delays or failure caused by, or related to: any of the exclusions listed herein; shortages of labor and/or materials; or any other cause beyond our reasonable control. We are not liable for additional charges to access or transport materials, supplies, or authorized contractors to the covered property due to lack of or inhibited serviceability, such as but not limited to required use of ferries or barges and/or remote locations.

12. We are not responsible for damage that results from an authorized contractor's service or delay in service.

13. We are not responsible for incidental and/or consequential loss or damages resulting from the mechanical failure of any item including, without limitation, food spoilage, loss of income, additional living expenses, and/or property damage.

14. Should any item otherwise covered by this Agreement be covered by insurance, warranties or guarantees, including but not limited to a manufacturer's, contractor's, builder's, distributor's, or in-home warranty, we are not liable for repairs or replacements covered by such insurance, warranties, or guarantees. Our coverage is secondary to such insurance, warranties, or guarantees.

15. Subject to the specific item limitations listed above, our liability does not exceed $5,000 per claim (A "claim" is payment made as a result of a request for service due to the failure of a single covered item.) and $15,000 in aggregate per Agreement term.

16. If you authorize or perform any improper alterations, installations or repairs or improperly modify any system, appliance or component covered by this Agreement, or damage it in the course of remodeling or repair, we will no longer be obligated to cover such item(s).

1. We may declare this Agreement void in the event of fraud or material misrepresentation by you or your representatives of any fact or circumstance relative to the application of this Agreement or to the items and/or their mechanical failure covered by this Agreement.

2. In the event a real estate listing agreement is canceled while your home is covered by a Seller Home Warranty and a claim has been paid, you agree to pay to us the lesser of: (1) any claims paid under the Seller's coverage, or (2) the applicable Buyer Conversion Warranty fee. In the event a home which was covered under the Seller Home Warranty during the listing period is sold, regardless of whether a claim is paid under the contract, the seller will be liable to us for the applicable Buyer Conversion Warranty fee.

1. This Agreement covers a single family residence, including a condominium, townhouse or villa, or a multi-family property of two (2) to four (4) units (duplex, triplex, or fourplex), used solely for residential purposes. Any dwelling used in whole or in part for commercial purposes such as, but not limited to, a day care facility, group home (5 or more unrelated individuals cohabiting in same household), rest home, church or school will not be covered. Homes listed in any historical register are not covered. Whether or not this contract covers a condominium unit, mobile home, manufactured home, or any multi-family dwelling (i.e., duplex, tri-plex, or fourplex), any repairs and/or replacements will be limited to the items solely used by and located and serviceable within such single unit (unless specified otherwise). No common area items shared by non-warranted units will be covered by this Agreement.

2. Multi-family properties are eligible for the Seller Home Warranty; however, coverage is restricted to the owner occupied unit only. All other tenant occupied units are not covered under the Seller Home Warranty .If coverage is provided on tenant occupied units under the Buyer Conversion Warranty, Buyer Direct Warranty, New Home Warranty, and/or Open Direct Warranty, you (not the tenant) are responsible to report the claim and pay the deductible charge. Multi-family property is not eligible for the New Home Warranty.

3. Mobile homes constructed within ten (10) years of the proposed effective date of the Agreement are eligible for coverage, provided they are permanently secured to the ground and that the land they are located on is owned by you. Mobile/manufactured homes that are located in a division operated similar to a condominium, where maintenance is provided, are also eligible for coverage.

1. Term. A Buyer Conversion Warranty , Buyer Direct Warranty and Open Direct Warranty expire one (1) year from Agreement effective date, unless renewed. A New Home Warranty expires three (3) years from Agreement effective date, unless renewed.

2. Renewal. A Buyer Conversion Warranty, Buyer Direct Warranty, Open Direct Warranty and New Home Warranty may be renewed on an annual basis and under the then current renewal plan, at our option and where permitted by state law. In the event this Agreement is renewable, you will be notified of the applicable rates and terms of coverage.

3. Cancellation. A Seller Home Warranty and a Buyer Conversion Warranty are non-cancelable except as governed by state law. A Buyer Direct Warranty, a New Home Warranty, and an Open Direct Warranty may be canceled by you any time upon our receipt of ten (10) days prior written notice to us. Any refund issued is subject to short-rate schedules and deduction of a processing fee of $25, and any charges for issue, service, and claims paid, except where specifically governed otherwise by state law. Please see "State Specifics" section on the Agreement Coverage Summary for detailed information that may apply in your state.

4. Assignment. In the event of assignment or transfer of title of the covered property, this Agreement may be assigned and/or transferred at our option, where permitted by state law and when the applicable fee has been paid. We reserve the right to charge a transfer fee not to exceed $25.

VIII. OTHER CONDITIONS

5. Installment Billing. In certain cases you may be permitted, at our option, to pay for your coverage on an installment basis. Should you suffer a mechanical failure covered by this Agreement at a time when there are unpaid installments due from you, whether or not such payments are due or overdue, we reserve the right to deduct all or any portion of any unpaid amounts from the amount of loss covered by this Agreement for such incident, or to require payment of the entire remaining unpaid balances prior to covering the loss for you as we deem necessary or desirable. Our failure to exercise any such right on one occasion shall not be deemed a waiver of such right on other occasions.

6. Waiver. Should we waive any of our contractual rights, such waiver will not constitute a future waiver of said rights.

7. Dispute Resolution. Any controversy or dispute resulting from a claims settlement under this contract shall be settled by binding arbitration conducted in Florida, unless another location is agreed to by both parties, in accordance with the existing rules of the American Arbitration Association. Any award rendered by the arbitrator(s) shall be final, binding and conclusive on all parties for all jurisdictions. The arbitrator(s) shall cause the losing party to pay the reasonable attorneys' fees and costs of the prevailing party and disbursements related to the arbitration process and any appeal thereof. Any controversy or claim must be submitted to arbitration within six (6) months (or other period required by law) from date in which controversy or claim first arose and if not brought within such time (time being of the essence), the party seeking to resolve such controversy or claim shall lose all rights and remedies with respect hereto.

8 Disclosure The price of the Agreement includes the full amount of all fees due and payable as well as the costs of processing and administration for the Issuing Company and its agents where allowable by law. Any applicable state or local sales taxes are in addition to the price of the Agreement.

9. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supercedes all prior agreement and understandings of the parties hereto, oral or written, with respect to the subject matter hereof. Except as provided herein, all other warranties, expressed or implied, are hereby disclaimed.

10. Issuing Company. The Home Warranty Agreement is issued by HomeSure Services, Inc., except in the following states, where it is issued by the following respective identified entity: In Alabama, Florida, Illinois, Iowa, Mississippi, Nevada, New York, Ohio, South Carolina, Texas, Utah, Vermont, Washington, Wisconsin and Wyoming by HomeSure of America, Inc.; in California by HomeSure Protection of California, Inc.; in Arizona by HomeSure of Arizona, Inc.; and in Virginia and New Hampshire by HomeSure of Virginia, Inc.

11. Marketing. This Agreement is marketed through HMS National, Inc. HMS is a registered trademark of HMS National, Inc., P .0. Box 551299, Fort Lauderdale, FL 33355-1299; telephone 954-845-9100.

12. Corporate/Administrative Office. Our administrative office may be reached at P.O. Box 551540, Ft. Lauderdale, FL 33355-1540.

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