Choice Home Warranty (“CHW”) has entered into a strategic relationship with the Home Service Club of California, Inc. (“HSCCA” a Licensed Home Protection Company with the California Department of Insurance) combining CHW’s industry leading technology enabled home warranty administrative services with HSCCA in order to bring technology enabled home warranty options to California residents. With technology playing an increasingly critical role in every aspect of the home, HSCCA recognizes CHW’s advance technology and its 14 years of administration excellence will greatly benefit Californians.
In California, CHW branded service contracts are issued and offered by HSCCA and sold exclusively by Home Service Club of California Insurance Services, Inc. Choice Home Warranties are not available in California and CHW is not licensed by the California Department of Insurance.
Sample Agreement. Terms may vary in different states.
TERMS OF SERVICE AGREEMENT
CHOICE HOME WARRANTY
During the coverage period, Our sole responsibility will be to arrange for a qualified Service Provider to repair or Replace (as defined in Section K), at Our expense (up to the limits set forth in Sections D and E below) in accordance with the terms and conditions of this Agreement
- Your Agreement term (the dates that Your Agreement is in effect), Your Agreement Fee, Your Service Fee, and Your equipment, systems, and appliances covered under this Agreement, are set forth in Your Coverage Details.
- All systems (a) must become inoperative due to normal wear and tear; (b) must be located inside the main foundation or detached garage (with the exception of pool/spa, well pump, septic tank pumping, sprinkler system, and air conditioner); (c) must be in proper working order on the effective date of this home warranty Agreement. Known or unknown pre-existing conditions are not covered.
- This Agreement covers occupied homes under 5,000 square feet unless an appropriate fee is paid.
- Coverage starts 30 days after receipt of Agreement Fee. Your coverage may begin before 30 days if We receive proof of prior coverage showing no lapse, through another carrier.
- Capitalized terms, not otherwise defined, are defined in Section K.
B. SERVICE REQUESTS
- You must request service as soon as the malfunction is discovered and prior to the expiration of Your Agreement term. (Refer to Your Coverage Details for information on how to request service.)
- Upon request for service, We will begin contacting Service Provider(s) within 4 hours. You will receive the name, phone number, and appointment date and time upon acceptance of the request by a Service Provider. In some circumstances, it could take more than 48 hours for a Service Provider to accept the request.
- We will not reimburse for services performed without prior approval.
- You will pay a Service Fee in the amount set forth in Your Coverage Details to the Service Provider for each service request You submit to Us.
- If work performed under this Agreement should fail within 30 days, We will correct the failure without a Service Fee.
- We have the sole right to select the Service Provider.
C. COVERAGE (COVERAGE DEPENDENT ON PLAN)
Except for Air Conditioning/Heating/Ductwork, Ceiling Fan/Exhaust Fan/Attic Fan, and Garage Door Opener, the coverage is for no more than 1 Covered Item unless additional fees are paid. Coverage under this Agreement is subject to all other terms and conditions of this Agreement including but not limited to matters listed as “Excluded” under a Covered Item below notwithstanding the word “All” in describing what is “Covered”.
- CLOTHES DRYER – COVERED: All components and parts.
- CLOTHES WASHER – COVERED: All components and parts.
- BUILT-IN MICROWAVE – COVERED: All components and parts.
- OVEN/RANGE/COOKTOP – COVERED: All components and parts.
- DISHWASHER – COVERED: All components and parts.
- GARBAGE DISPOSAL – COVERED: All components and parts.
- REFRIGERATOR – COVERED: All components and parts, including integral freezer unit.
EXCLUDED: Audio/Visual equipment and internet connection components.
- CEILING FAN/EXHAUST FAN/ATTIC FAN – COVERED: All components and parts.
- GARAGE DOOR OPENER – COVERED: All components and parts.
EXCLUDED: Door. Door track assemblies.
- Air Conditioning/Heating/Ductwork – COVERED: All components and parts of the following systems: ducted, central, electric, split and package units, forced air (gas, electric, oil), geothermal, wall-mounted units, mini-splits, heat pumps, floor furnace, hot water or steam circulating heat, and electric baseboard. Ducts (unless collapsed or clogged) from unit to point of attachment at registers or grills. If replacing, only the failed components and parts will be upgraded to meet government mandated guidelines.
EXCLUDED: Outside or underground piping. Well pump, and well pump components for geothermal and/or water source heat pumps. Window units. Water towers. Chillers and water lines. Refrigerant line sets. Portable units. Fuel storage tanks. Chimneys. Pellet stoves. Cable heat. Wood stoves (even if only source of heating). Insulation. Collapsed/clogged ductwork. Damper motors. Service valves. Labor, refrigerant, and other costs related to failure of components that are covered under manufacturer’s warranty. Legally mandated diagnostic testing when replacing heating or cooling equipment. We will not pay for any modifications necessitated by the repair of existing equipment or the installation of new equipment including, but not limited to, the required Replacement of air handlers when Replacing condensers, and condensers when Replacing air handlers.
- WATER HEATER (Gas/Electric) – COVERED: All components and parts, including tankless water heaters and circulating pumps.
EXCLUDED: Fuel tanks. Secondary holding or storage tanks. Vents. Flues. Thermal expansion tanks. Energy management systems. Units exceeding 75 gallons.
- ELECTRICAL SYSTEM – COVERED: Electrical panels, light switches, electric outlets, (D.C.) wiring, light fixtures, and wiring from the electrical panel to any Covered Item.
EXCLUDED: Circuit overload. Face plates. All components and wiring to or from a solar power system, generator, or an energy management system.
- PLUMBING SYSTEM/STOPPAGE – COVERED: Leaks and breaks of water, drain, gas, waste, or vent lines. Toilets and related mechanisms. Toilet wax ring seals. Faucets. Shower heads. Shower arms. Valves for shower, tub, and diverter. Angle stops. Risers. Gate valves. Hose bibs. Basket strainers. Built-in bathtub whirlpool motor, pump, and air switch assemblies. Pressure regulators. Sewage ejector pump (septic system sewage ejector pumps are not covered unless optional coverage in Section D8 is purchased). Clearing of sink, bathtub, shower, and toilet stoppages. Clearing of mainline drain and sewer stoppages through an accessible cleanout up to 100 feet from access point. Clearing of lateral drain line stoppages up to 100 feet from access point including accessible cleanout, p-trap, drain or overflow access points.
EXCLUDED: Stoppages caused by collapsed, damaged or broken drain, vent, or sewer lines outside the home’s main foundation. Lines broken, infiltrated, or stopped by roots or foreign objects, even if within the home’s main foundation. Bathtubs. Sinks. Showers. Shower enclosures and base pans. Toilet lids and seats. Jets. Caulking or grouting. Septic tanks. Water filtration/purification system. Holding or storage tanks. Saunas or steam rooms. Costs to locate or access cleanouts not found or inaccessible, or to install cleanouts. Access through roof vents.
D. OPTIONAL COVERAGE (Requires Additional Payment)
This optional coverage is for no more than 1 Covered Item unless additional fees are paid. Coverage under this Agreement is subject to all other terms and conditions of this Agreement including but not limited to matters listed as “Excluded” under a Covered Item below notwithstanding the word “All” in describing what is “Covered”.
- POOL AND/OR SPA EQUIPMENT – COVERED: Above ground components and parts of the heating, pumping, and filtration system including: pool sweep motor and pump, pump motor, blower motor and timer, plumbing pipes and wiring, plumbing, and electrical. Both pool and built-in spa equipment are covered if they utilize common equipment (if they do not utilize common equipment, then only the pool is covered unless an additional fee is paid).
EXCLUDED: Portable or above ground pools or spas. Lights. Liners. Jets. Ornamental fountains, waterfalls, and their pumping systems. Auxiliary pumps. Pool covers and related equipment. Fill line and fill valves. Built-in or detachable cleaning equipment including, without limitation, pool sweeps, pop-up heads, turbo valves, skimmers, chlorinators, and ionizers. Fuel storage tanks. Disposable filtration mediums. Heat pumps. Multi-media centers. Dehumidifiers. Saltwater generators and components.
- WELL PUMP – COVERED: All components and parts of well pump utilized for main dwelling only. We will pay up to $500 for access, diagnosis, and repair and/or Replacement.
EXCLUDED: Above or underground piping, cable or electrical lines leading to or from the well pump, including those that are located within the well casing. Well casings. Pressure switches not located on the pump. Holding, storage or pressure tanks. Booster pumps. Redrilling of wells. Well pump and all well pump components for geothermal and/or water source heat pumps.
- SUMP PUMP – COVERED: Sump pump for ground water.
EXCLUDED: Portable pumps. Backflow preventers. Check valves.
- CENTRAL VACUUM – COVERED: All mechanical system components and parts.
EXCLUDED: Ductwork. Hoses. Blockages. Accessories.
- LIMITED ROOF LEAK (Single Family Homes Only) – COVERED: Repair of shake, shingle, and composition roof leaks over the occupied living area. We will pay up to $500 for access, diagnosis, and repair and/or Replacement. NOTE: If roof must be partially or completely replaced to effect repair, this coverage does not apply.
EXCLUDED: Porches. Patios. Cracked and/or missing material. Foam roofs. Tar, gravel, or metal roofs. Cemwood or Permatek shakes. Masonite shingles. Flat or built-up roofs. Structural leaks adjacent to or caused by appendages of any kind. Downspouts. Flashing. Gutters. Skylights. Decks. Patio covers. Solar equipment. Roof jacks. Antennae. Satellite components. Chimneys. Partial roof replacement. Preventative maintenance.
- STAND ALONE FREEZER/ SECOND REFRIGERATOR – COVERED: All components and parts, including integral freezer unit.
EXCLUDED: Audio/Visual equipment and internet connection components.
- SEPTIC TANK PUMPING – COVERED: Main line stoppages/clogs. If a stoppage is due to a septic tank back up into the home, then We will pump the septic tank one time during the Agreement term. We will pay up to $250 per Agreement term for access, diagnosis, and repair and/or Replacement.
- SEPTIC SYSTEM – COVERED: Sewage ejector pump. Control box. Jet pump. Aerobic pump. We will pay up to $500 for access, diagnosis, and repair and/or Replacement.
EXCLUDED: Leach lines. Field lines. Lateral lines. Tile fields and leach beds. Insufficient capacity. Clean out. Pumping.
- SPRINKLER SYSTEM – COVERED: Control box. Outside or underground piping. Sprinkler heads. We will pay up to $500 for access, diagnosis, and repair and/or Replacement.
- STAND ALONE ICE-MAKER – COVERED: All components and parts, including integral freezer unit. We will pay up to $500 for access, diagnosis, and repair and/or Replacement.
- TRASH COMPACTOR – COVERED: All components and parts. We will pay up to $500 for access, diagnosis, and repair and/or Replacement.
E. LIMITATIONS OF LIABILITY
- Except where lower limits apply (e.g., Sections D2, D5, D7, D8, D9, D10, and/or D11), Our maximum liability is $3,000 per 12-month period for each Covered Item for access, diagnosis, and repair or Replacement. The terms of coverage apply the same whether for Fixed-Term Plan, or for a Monthly Plan. Limits for Monthly Plans and Fixed-Term Plans are calculated per Covered Item within each 12-month period starting from Your original Agreement term effective date. Coverage limit applies in the aggregate when multiple items are listed in the same numbered section.
- We will pay up to $500 to provide access to Covered Items through roofs, unobstructed walls, ceilings or floors, concrete covered, embedded, encased or otherwise inaccessible Covered Items. We will return the access opening to a rough finish condition, subject to the $500 limit.
- We have the sole right to determine whether a Covered Item will be repaired or Replaced (as defined in Section K). We reserve the right to offer cash or cash equivalent in lieu of repair or Replacement in the amount of Our actual cost (which at times may be less than retail) to repair or Replace any Covered Item. Cash or cash equivalent offered in lieu of repair or Replacement does not include the costs of shipping, tax, or installation. When cash or cash equivalent is issued to Replace a Covered Item, You may not make subsequent claims on such Covered Item for 12 months from the date of issue.
- We reserve the right to obtain a second opinion at Our expense.
- This Agreement does not cover routine maintenance or malfunction due to misuse, abuse, neglect, or physical damage. This Agreement only covers failures due to normal wear and tear. In the event coverage is denied, and a You seek to have Us review that denial, We have the right to request routine maintenance records and/or home inspection reports in reviewing Our decision.
- We are not responsible for upgrades, modifications, 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 a 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.
- We are not responsible for any repair, Replacement, installation, or modification of: 1) any Covered Item arising from a manufacturer’s recall or defect of said Covered Items; or 2) any Covered Item while still under an existing manufacturer’s or distributor’s warranty.
- We are not responsible for service to meet current building or zoning code requirements or to correct for code violations including when the Replacement of a Covered Item is necessary.
- We are not responsible for the cost to obtain permits.
- Electronic or computerized energy management or lighting and appliance management systems, solar systems and equipment are not included.
- You may be charged an additional fee by the Service Provider to dispose of a Covered Item or one of its components.
- You agree that We are not liable for the negligence or other conduct of the Service Provider, nor are We an insurer of Service Provider’s performance. You also agree that We are not liable for damages caused by the Service Provider, including, but not limited to, consequential, incidental, indirect, secondary, or punitive damages. You expressly waive the right to all such damages.
- We are not liable for any failure to obtain timely service or delays in obtaining parts or equipment or for delays due to conditions beyond Our control, including, but not limited to, labor difficulties, strikes, riots, pandemic, war, acts of war, fire, floods, embargoes, insurrections, or acts of God. We shall continue performance hereunder with reasonable dispatch whenever such events that caused the delay are removed.
- You hereby waive all rights to claim attorneys’ fees, indirect, punitive, incidental, consequential, and/or multiplied or otherwise increased damages, and any other damages, other than for actual out-of-pocket expenses.
- Coverage is not for commercial property or residences used as businesses, or for the repair or Replacement of commercial grade equipment, systems, or appliances.
F. MULTIPLE UNITS AND INVESTMENT PROPERTIES
- No coverage is allowed for duplex, triplex, or fourplex dwellings, unless the particular unit within such dwelling is covered by this Agreement with applicable optional coverage for coverage to apply to Common Systems.
- If this Agreement is for a particular unit within a multiple unit dwelling with 5 or more units, then only items contained within the confines of Your individual unit are covered. Common Systems are excluded.
- Except as otherwise provided in this section, Common Systems are excluded.
G. TRANSFER OF AGREEMENT & RENEWALS
- Transfer: You may transfer this Agreement at any time. There is no fee to transfer the Agreement.
- Term and Renewal: Coverage begins and ends on the dates specified on Your Coverage Details page and continues, unless cancelled. At Our discretion and provided that We give You at least 60 days prior written notice, or as otherwise required by law, We may notify You of the prevailing rate and terms for renewal, and auto-renew Your coverage as a Monthly Plan at Our option.
This Agreement can be cancelled by You for any reason. If You decide to cancel this Agreement, and a cancellation notice is received by Us within 30 days of the date You received the Agreement, and We have incurred no Service Costs, You will be refunded the full Agreement Fee. If You cancel this Agreement after 30 days from the date You received this Agreement, You shall receive a pro-rata refund of the Agreement Fee, less any Service Costs incurred by Us, less an administrative fee of up to 10% of the Agreement Fee or $25, whichever is less, unless otherwise precluded by law.
I. RESOLUTION OF DISPUTES-MANDATORY ARBITRATION
- MEDIATION: In the event of any dispute or controversy arising out of or relating to this Agreement, You agree to file a written claim with Us and allow Us 30 calendar days to respond to the claim.
- MANDATORY ARBITRATION: Any claim, dispute or controversy, regarding any contract, tort, statute, or otherwise, arising out of or relating to this Agreement or the relationships among the parties hereto shall be resolved by one arbitrator through binding arbitration administered by the American Arbitration Association (“AAA”), under the AAA Commercial or Consumer, as applicable, Rules in effect at the time of the filing. Copies of the AAA Rules and forms can be located at www.adr.org, or by calling 1-800-778-7879. The arbitrator’s decision shall be final, binding, and non-appealable. Judgment upon the award may be entered and enforced in any court having jurisdiction. This clause is made pursuant to a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act (9 U.S.C. § 1, et seq.). Neither party shall sue the other party in any court other than as provided herein for enforcement of this clause or of the arbitrator’s award; any such suit may be brought only in Federal District Court, or if any such court lacks jurisdiction, in any state court that has jurisdiction. The arbitrator, and not any federal, state, or local court, shall have the exclusive authority to resolve any dispute relating to the interpretation, applicability, unconscionability, arbitrability, enforceability, or formation of this Agreement including any claim that all or any part of this Agreement is void or voidable. However, the preceding sentence shall not apply to the clause entitled “Class Action Waiver.” THE PARTIES UNDERSTAND THAT THEY WOULD HAVE HAD A RIGHT TO LITIGATE THROUGH A COURT, TO HAVE A JUDGE OR JURY DECIDE THEIR CASE, HOWEVER, THEY UNDERSTAND AND CHOOSE TO HAVE ANY CLAIMS DECIDED THROUGH ARBITRATION.
- CLASS ACTION WAIVER: Any claim, dispute or controversy, regarding any contract, tort, statute, or otherwise, arising out of or relating to this Agreement or the relationships among the parties hereto must be brought in the parties’ individual capacity, and not as a plaintiff or class member in any purported class, collective, representative, multiple plaintiff, 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 A PARTY TO A CLASS OR REPRESENTATIVE ACTION, HOWEVER, THEY UNDERSTAND AND CHOOSE TO HAVE ANY CLAIMS DECIDED INDIVIDUALLY, THROUGH ARBITRATION.
- In the event that You have multiple Agreements with Us, You must file 1 arbitration per Agreement. You hereby waive any right to bring 1 arbitration that covers multiple Agreements.
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.
K. Parties and Definitions
“We“, “Us” and “Our“, throughout this Agreement (“Agreement,” or “plan“), refers to Home Service Club of California, Inc., 8910 University Center Lane, Suite 400, San Diego, CA 92122, the party obligated to perform under this Agreement (the “Obligor”). Subject to applicable law, We may delegate some or all administration of this Agreement to Warranty Administration Services, Inc., 90 Washington Valley Road, Bedminster, NJ 07921. Also, the sale, solicitation and effectuation of this Agreement may be conducted by or through Home Service Club of California Insurance Services, Inc. (“HSCC Insurance Services”), 8910 University Center Lane, Suite 400, San Diego, CA 92122. HSCC is an affiliate of Ours, which is licensed as a resident insurance producer in California under License No. 6005734. Notwithstanding the foregoing, Our obligations under this Agreement are backed by the full faith and credit of the Obligor.
“Agreement Fee” refers to the amount listed as Your “Rate” on Your Coverage Details and the amount You paid for this Agreement.
“Annual Monthly Agreement Fee” refers to the Agreement Fee for each respective 12-month period beginning on the Order Date or Your coverage effective date (whichever is later).
“Common Systems” refers to systems or appliances that are utilized by multiple apartments, multiple units, multiple units of townhomes, multiple single-family homes, or multi-family homes.
“Coverage Details” refers to the page preceding Your Agreement that is headed “Coverage Details” at the top of the page and lists Your name, contract number, covered property address, Agreement Fee, and Service Fee.
“Covered Item” refers to each numbered item listed in Sections C1 to C13; and Sections D1 to D11. Some Covered Items require payment of additional fees. See Your Coverage Details for a List of Covered Items included in Your policy.
“Fixed-Term Plan” refers to a plan with a fixed term of 1 year or greater.
“Monthly Plan” refers to a plan with a monthly recurring term of coverage.
“Order Date” refers to the date that You submitted Your Agreement Fee for processing by Us.
“Replace” or “Replacement” of a Covered Item means for clothes dryer, clothes washer, built-in microwave, oven/range/cooktop, dishwasher, refrigerator, and garbage disposal, We are responsible only for replacement equipment of similar features, capacity, and efficiency, but not for matching dimensions, brand, or color. For all other Covered Items, We will replace with builder’s standard grade equipment that is the basic option that typically comes in standard sizes, colors, and standard configurations designed to fit most homes. We shall not be responsible for costs of equipment or labor in excess of builder’s standard grade equipment.
“Service Costs” refer to any costs incurred by Us for access, diagnosis, repair and/or Replacement during the term of Your Fixed-Term Plan or, in the case of Monthly Plans, each respective 12-month period beginning on the Order Date or Your coverage effective date (whichever is later).
“Service Fee” refers to the amount You will have to pay to a Service Provider when You make a request for service.
“Service Provider” refers to a qualified service contractor within Our network that complete work under this Agreement. Service Providers are third parties not employees of Ours.
“You” or “Your” refers to the Agreement holder(s).
L. MISCELLANEOUS PROVISIONS
- Payment and Late Payment: You agree to have the credit card, debit card or other authorized payment source (the “Payment Source”) used for Your Agreement Fee, kept on file to automatically charge in advance of the first day of each installment billing period following Your initial payment or any installment or for a renewal payment. If Your Payment Source cannot be charged for any reason, and You have not otherwise made the appropriate installment or renewal payment on time, Your coverage will cease from the due date. We have the right, but not the obligation, to accept any late payment and allow Your coverage to continue from the date of late payment.
- Privacy Notice: For information regarding Your privacy rights including, but not limited to, Your rights under the California Consumer Privacy Act of 2018 please visit: https://www.choicehomeserviceclub.com/privacy-policy.
We offer service agreements which are not warranties.
This is not a contract of insurance.