Standard Coverage

Standard Coverage
Residential Service Contract

Thank you for choosing A BETTER HOME WARRANTY COMPANY (referred to elsewhere as “BHW”) as your home warranty provider. We are a Dallas-Fort Worth company, owned and operated by local residents and experienced mechanical contractors. We are available 24 hours per day, 7 days per week to take service calls. Your system or appliance will be repaired to your satisfaction or replaced.

By applying for this service, homeowner warrants that all covered appliances and systems at the above address, are in good working order as of the date of this application. Contracts submitted through real estate transactions with a required home inspection report may be redesignated as Current Owner coverage until the report is produced.

Residential Service Contract

A. CONTRACT COVERAGE

I. YOUR COVERAGE

    1. A Better Home Warranty Company (“BHW”) will arrange for a Service Contractor to repair or replace the systems covered in accordance with this contract if they (a) are located within the perimeter of the home (except for pool, spa, and HVAC), (b) become inoperative due to normal wear and tear, (c) are in good working order on the effective date of this contract and (d) are properly installed and available for diagnosis. Access to equipment must be in compliance with current codes. Ladder access must not exceed sixteen feet.This contract covers only single-family residential property up to 5,000 sq ft. If the property is over 5,000 sq ft, please purchase additional square footage coverage. Coverage includes only the items stated as covered and is subject to limitations. BHW reserves the right to inspect covered items and to ask for an inspection report.

    2. Buyer’s coverage begins at close of sale and continues for 13 months after close of sale. Current homeowner coverage begins upon issuance of a contract number and continues for twelve months. During the 30 day waiting period, homeowner is eligible for the HVAC and mechanical maintenance programs. All renewal and current homeowner contracts are for a period of 12 months regardless of whether annual, monthly, quarterly or semi-annual installments are selected. Elapsed contracts will have a thirty day wait period.

    3. Seller's coverage for a listed property starts upon issuance of a contract number by ABHW and continues for either 180 days, until close of sale or termination of listing (whichever comes first) and does not cover "for sale by owner" listings. There is no charge for Seller's Coverage, but the coverage limits are lower, $500.00 per item and $1500.00 total. Service fee is the same as for the buyer's coverage - $75.00.

    4. Pre-existing conditions are not covered by this contract. However, for Buyer’s coverage only and for operative systems that become inoperative due to normal wear and tear, there is no denial of coverage (“No Fault” coverage) for: conditions that existed on the effective date of the contract if, at that time, the condition was unknown and would not have been detectable by visual inspection or a simple mechanical test. Undersized, mismatched efficiency or poorly designed systems relative to the square footage are not covered by the “No Fault” coverage.

B. SERVICE

Under normal circumstances, Basic Coverage repairs will be scheduled in your first telephone call and will be performed by A Better Deal Heating & Air Conditioning, A Better Deal Electric or A Better Deal Plumbing, or A Better Deal Appliance on a same day service basis. Most Basic coverage items will be scheduled for repairs to be performed within eight hours. Non-emergency repairs will be scheduled within 48 hours. Re-Key and Pest service will be scheduled immediately through an independent contractor to be completed within 48 hours. All service requests must be communicated to the telephone number below.

Telephone: 817-837-1095
    1. 1. You must notify BHW for work to be performed under this contract as soon as the problem is discovered and prior to the expiration of this contract. BHW, at its solediscretion, will select an affiliated or unaffiliated Service Contractor and will not reimburse for services performed without prior approval. Evidence of recent attempted repairs by others voids coverage of the claim. Should BHW grant you authorization to contact an independent Service Contractor, BHW will provide reimbursement based on the following conditions:

      1. selected Service Contractor is qualified and insured,

      2. you agree to be reimbursed at BHW’s typical rates for parts and labor (less than retail) and

      3. you call BHW prior to Service Contractor performing any repairs to determine if the repair is a covered item under this contract. BHW does not charge an additional fee for service outside of normal business hours. Service work is guaranteed for 30 days.

    2. Each trade call is subject to a $75 service fee. The trade call fee for Seller’s contracts is $75. The trade call fee for pests and rodents is $75. The trade call fee for a termite inspection is $75.The trade call fee for re-keying service is $75. Additionally, termite treatment for each affected area is $125 in addition to inspection. Failure to pay the trade call fee at the time of the visit will result in suspension of coverage until the proper fee is paid without extension of the contract period. If typical gasoline prices in the service area exceed $3.50 per gallon, BHW may temporarily increase trade call fees by $10 until prices fall below $3.50 per gallon. Additional charges may apply to certain repairs and replacements (See Section E.).

C. COVERED SYSTEMS AND APPLIANCES

The following items are covered under this contract

    1. CENTRAL AIR CONDITIONING, HEATING & DUCTWORK
      TUNE-UP: Seasonal tune-up visit performed.Each system is considered a separate service call.

      COVERED: Components and parts that affect operation for gas or electric heater, heat pump, electric central air conditioning condenser, evaporative coil, air handler, evaporative cooler (pump, casing, motor, belts, pulleys and float-assembly only), leaks in accessible refrigerant lines and ductwork from the cooling unit to the connection at register or grill. If necessary to effect a covered repair or replacement, we will upgrade covered equipment as required by federal 13 SEER and R410a equipment regulatory standards.

      NOT COVERED: Gas A/C systems–Condenser casings–Registers, zone/damper systems, grills or filters – Electronic air cleaners – Window units – Non-ducted wall units – Freon recapture/pump down – Water towers – Humidifiers – Roof jacks or stands – Flues – Vents – Chillers – Noises – Systems that are connected to another system - Systems with three phase power- variable speed blowers– Baseboard casings – Fuel storage tanks – Portable units – Solar systems – Oil heating units – Chimneys, fireplaces and key valves – Clocks – Timers – Heat lamps – Hot water/steam heat circulating systems – Geothermal and/or water source heat pumps – Collapsed ductwork-equipment or materials under a manufacturer’s recall, Asbestos-insulated ductwork– Improperly sized, poorly maintained, designed, or mismatched efficiency systems. Testing or locating leaks in A/C or ductwork -plenums, transitions and drain pans. While covered, 90% efficiency and higher furnaces or 14 SEER and higher A/C equipment will be replaced with similar SEER and efficiency equipment. (See also Section E.)

    2. PLUMBING SYSTEM, STOPPAGES & WATER HEATER

      COVERED: Leaks and breaks of water, drain, gas, waste or vent lines – Toilets – Valves for shower, tub, diverter, angle stops, risers and gate valves – Clearing of stoppages in drain lines with a standard sewer cable from an existing non-roof access point without excavation – Water heater (gas or electric)

      NOT COVERED: Damage or blockage caused by freezing or roots, foreign objects or damaged drain, vent or sewer lines– Fixtures including faucets, bathtub, pop-up assemblies, shower head/arm, sink, toilet lids/seats – Sprinkler or solar systems – Shower enclosures and base pans – Breaks or cracks in toilet bowl or tank – Removal of toilet – Caulking or grouting – Septic tanks – Water softeners, filters or purifiers – Dryer vents – Pressure regulators – Permanently installed sump pumps – Inadequate or excessive water pressure – Flow restrictions in water lines – leak location, access, or sealing access. Sewage ejector pumps – Holding or storage tanks – Saunas or steam rooms – Hose bibs – Whirlpool jets, motor and pump assemblies – Any associated masonry work – Roof access cleanout – Stoppages outside the main foundation of the home– Grinder pumps – Costs to locate, access or install a ground level cleanout – Solar water heaters – Storage tanks – Tankless water heaters– Noise – Flues and vents – Water heaters over 50 gallons – Insufficient capacity – Odor – Drip pans (See also Section E.) Conditional coverage: Repairs requiring R22 refrigerant after January 2015 will be subject to a charge for adaptation to a new approved refrigerant.

    3. ELECTRICAL SYSTEM

      COVERED: Components and parts that affect operation including built-in bath exhaust fans

      NOT COVERED: Fixtures and any components – Doorbells, alarms or intercoms – Central vacuum systems – Attic fans – Inadequate wiring capacity – Breaker panel – D.C. wiring or components – Septic system electrical equipment – Low voltage lighting – Computer, phone, cable, or multi-media wiring – Improper wiring under the foundation, deck or ground-access in walls or slabs (See also Section E.)

    4. KITCHEN APPLIANCES & GARAGE DOOR OPENER

      COVERED: Components and parts that affect operation of: Oven–Range/Cook top– Dishwasher – Garbage Disposal – Trash Compactor – Garage Door Opener (wiring, motor, switches, receiver unit and track assembly only)

      NOT COVERED: Clocks, lights or light sockets – Meat probe assemblies – Rotisseries – Microwaves – racks, handles, knobs, rollers, baskets, buckets, shelves or integrated TV/ electronics – Sensi-heat burners – Magnetic induction – Interior lining or glass fronts – Equipment outside of the primary kitchen (excludes garage door opener) – Portable or countertop units – Trim kits – Stoppage/damage caused by foreign material – Doors, locks and key assemblies – Garage doors – Touch pads – Safety sensors – Adjustment – Remote transmitters – Hinges and springs (See also Section E.)

    5. SUBTERRANEAN TERMITE TREATMENT, PEST & RODENT CONTROL

      COVERED: Treatment for subterranean termite infestation and treatment inside the perimeter of the home for: Roaches – Spiders – Mice – Crickets – Ground beetles – Clover Mites – Millipedes – Centipedes – Pill bugs – Ants (except for “Crazy,” Fire, Pharaoh and Carpenter ants) – Norway and roof rats – Up to 2 target pests per treatment – Treatment guaranteed for 30 days. See also Section B2 above.

      NOT COVERED: Bees – Fungus – Fleas – Wood-boring beetles, opossums, skunks, raccoons, squirrels, snakes or large mammals – Termite infestation in decks, fencing or outside the main foundation of the home or garage-sealing structure against pest intrusion or remediation (See also Section E.)

    6. RE-KEY SERVICE (UP TO 4 KEY HOLES)

      COVERED: Re-key up to 4 residential style key holes (including deadbolts) and provide 4 copies of the key. Trade call fee is $75.00 for re-keying.

D. UPGRADES AND ADDITIONAL OPTIONS

For an additional fee with Buyer’s Coverage, you may purchase optional coverage for up to 30 days after close of sale Optional coverage and upgrades are not available for Sellers contracts. Sellers may purchase current homeowner coverage which can be transferred to their buyer. With Inspection Report, Seller may purchase full coverage to take effect immediately and transfer to Buyer.

    1. LEVEL I UPGRADE

      COVERED: If a covered A/C, heating or plumbing replacement includes costs for disposal of old equipment, permits, code requirements and/or modifications required by installing new equipment, BHW will pay up to $250 per contract. Appliances: Professional series kitchen appliances are covered (includes optional appliance coverage if purchased) – Ceiling fans (with builder’s standard) – Doorbell (not intercoms) – Instant hot water dispenser – Plumbing: Faucets and showerheads (with builder’s standard) – Whirlpool motor and pump assemblies (not access) – Toilets up to $400 replacement value – Central A/C: Freon recapture/pump down (exception is adapting R-22 systems for use with new refrigerant) – Dishwasher: racks, baskets and rollers – Water heater – Oven/Range: Racks – Handles – Dials – Garbage disposal: Damage caused by foreign material.

    2. LEVEL II UPGRADE Includes: LEVEL I UPGRADE Plus: Refrigerator – Washer & Dryer

    3. LEVEL III UPGRADE – Includes Level II Upgrade Plus: Homes up to 8,000 sq ft – Concierge Service (dedicated client rep) – Additional A/C unit (3 total) – Detached Building – Stand Alone Icemaker – Built-in Wine Cooler

    4. GREEN UPGRADE: Covered: BHW will replace dishwasher, refrigerator or clothes washer with ENERGY STAR qualified product in the event any of these covered items are not able to be repaired.

    5. POOL AND/OR SPA EQUIPMENT OPTION

      COVERED: Both pool and spa equipment are covered if they utilize common equipment. If they do not, then the pool is covered, unless an additional fee is paid to cover the spa. Coverage applies to the heating, pumping and filtration systems only.

      NOT COVERED: Cleaning equipment (pool sweeps, cleaning/booster pumps, pop-up heads, turbo valves and the like) – Lights – Liners – Concrete-encased or underground electrical, plumbing or gas lines – Structural defects – Solar equipment – Jets – Fuel storage tanks – Covers and disposable filtration mediums (including filter grids) – Fountains – Heat pump – Electrically operated valves – Water chemistry equipment (including salt water converters, chlorinators, and water softeners)- Inaccessible components.

    6. APPLIANCES OPTION

      COVERED: Components and parts that affect operation of: One refrigerator (including icemaker and ice/water dispenser) – Stand Alone Icemaker – Built-in Wine Cooler – Washer & Dryer

      NOT COVERED: Racks – Shelves – Filters – Interior thermal shells/insulation – Noise – Handles – Lights –

      Food/beverage spoilage – Freezers that are not an integral part of the refrigerator – Equipment located outside of the primary kitchen – Multi-media electronics – Trim kits – Damage caused by mineral deposits – Wine vaults or wine coolers over 200 bottle capacity – If parts are not available for integrated icemaker, coverage is limited to cash value of icemaker only – WASHER: Plastic mini-tubs – Soap dispensers – Filter screens – Knobs and dials. DRYER: Venting – Lint screens – Knobs and dials – Dryer cabinets and components – “all in one” wash/dry units

    7. DETACHED BUILDINGS OPTION

      COVERED: Option to apply Standard coverage beyond the perimeter of the home to the detached garage, garage with apartment or guesthouse. You may need to purchase additional units of appliances or systems.

E. LIMITATIONS OF LIABILITY

This residential service contract is not designed, nor is it intended, to include or overlap any coverage that is included in your homeowner’s insurance policy, home builder’s warranty, and/or any manufacturer’s warranty, nor any defects found in a home inspection pursuant to a real estate purchase agreement.

    1. BHW is not responsible for restoration of any wall coverings, floor coverings, cabinets, counter tops, tiling, paint or the repair of any cosmetic defects. BHW is not responsible for locating, providing or closing access to covered items unless otherwise noted in this contract. Energy, lighting, pool/spa, sprinkler and appliance management systems (including mother boards) are not covered. You may be charged an additional fee to remove and/or dispose of an old appliance, system or component. For Current Homeowner and Seller’s coverage only, BHW is not responsible for replacement of covered systems or appliances because of obsolete or unavailable parts. However, BHW will reimburse you the reasonable estimated cost of the repair as determined by the fair value of similar repairs.

    2. BHW is not liable for any incidental, indirect, special, consequential or exemplary damages, injuries or losses or for failure to provide timely service. BHW is not liable for repair of conditions caused by chemical or sedimentary build up, misuse or abuse, failure to clean or maintain (see Section A-3), missing parts, structural changes, fire, freezing, electrical failure or surge, water damage, lightning, mud, earthquake, soil movement, storms, accidents, pet damage, pest damage, acts of God, mold, fungus, hazardous materials, failure due to excessive or inadequate water pressure, part delays, loss of income, utility bills or living expenses.

    3. BHW has the sole right to determine whether a covered item will be repaired or replaced. BHW reserves the right to offer cash in lieu of repair or replacement in the amount of BHW’s actual (less than retail) cost to repair or replace such item. BHW is not responsible for any work performed by any service contractor once cash in lieu of work has been authorized. BHW is responsible for providing replacement equipment of similar (not exact) features, capacity and efficiency (see Section C-1), but not for matching dimensions, brand, color or original manufacturer’s warranty. BHW is not responsible for upgrades, for the cost of construction or for modifications made necessary by existing equipment or installing new equipment. For major HVAC and Plumbing system replacements, these noncovered up grade, modification or construction costs can be significant (especially due to the 2010 federal regulatory requirement to eliminate the manufacture of R-22 refrigerant equipment). BHW is not responsible for repairs related to inadequacy or lack of capacity, improper installation/ mismatched equipment, previous repair or design, components or parts that do not affect the main operation of the unit and any modification to the system or appliance.

    4. BHW is not responsible for repair or replacement of commercial quality systems and appliances. However, if Level I Upgrade is purchased, kitchen appliance repairs on professional series brands are covered (such as Sub Zero, Viking etc), although matching brand for replacement is not covered. BHW is not responsible for repairs, equipment or materials arising from manufacturer’s recall of covered items or any items while still under an existing manufacturer’s, distributor’s or in-home warranty. You are responsible for providing maintenance on covered items as specified by the manufacturer to ensure coverage on such items.

    5. To diagnose, repair or replace covered items, BHW will pay per contract (i) no more than $1,000 for glycol, radiant, steam or gravity flow systems, (ii) no more than $500 for encased plumbing systems (including access), ductwork or for termite treatment, and (iii) no more than $1,000 for refrigerators, stand alone icemakers, built-in wine coolers, pool/spa systems or range/oven/cook top units. There is a $5,000 limitation of liability per covered item and a $15,000 limitation of liability per contract; however, for Sellers coverage, there is a $1500 limitation of liability per contract and $500.00 per covered repair.

    6. BHW is not responsible for upgrades, work or costs to comply with any federal, state, or local laws, regulations or ordinances or utility regulations or to meet current building or zoning codes. BHW is not responsible for service when permits cannot be obtained, nor will it pay for any costs related to permits or to refrigerant recovery or reclamation. This contract does not include coverage or responsibility to remove or dispose of any hazardous or toxic materials, including asbestos and mold. Homeowner will be responsible for uncovered costs.

    7. This contract shall be governed by the laws of the State of Texas without reference to the principles of choice of law thereof and the parties consent to the exclusive jurisdiction of the Courts of Tarrant County, Texas. By entering into this contract, the parties voluntarily and knowingly waive their rights to a jury. This contract contains the entire agreement between BHW and Contract Holder. Should any portion of this contract be held legally invalid or unenforceable, the remainder of this contract shall remain in full force and effect.

    8. Because Contract Holder and BHW agree that when entering this contract it is impossible or impractical to estimate the damages arising from any claim or controversy related to this contract, Contract Holder and BHW agree that any damages recoverable from BHW for any reason are limited to a maximum of $5,000 per covered item or $15,000 in the aggregate. Contract Holder and BHW agree that these are a reasonable forecast of just compensation. Subject to these maximums, Contract Holder’s sole remedy under this Contract is BHW’s cost of the required repair or replacement whichever is less.

ARBITRATION AGREEMENT:

The Contract Holder and BHW agree that any controversy or claim relating to this contract shall be submitted to binding arbitration. Judgment upon any award rendered in the arbitration may be entered by any court having jurisdiction thereof. Arbitration will be conducted under the then existing Commercial Arbitration Rules as promulgated by the American Arbitration Association. The parties agree that any arbitration will neither be conducted by nor administered by the American Arbitration Association. Any arbitration under this provision shall occur before a panel of three arbitrators in Tarrant County, Texas. Each party shall select one arbitrator. T h e two arbitrators shall then select the third arbitrator. The arbitrators, by majority determination, shall determine the issues subject to the arbitration. The substantive laws of the State of Texas without regard to the principles of choice of law thereof shall apply in any arbitration. The Texas Arbitration Act shall not apply to any arbitration. The nonprevailing party shall pay all costs of the arbitration including the prevailing party’s reasonable and necessary attorney and arbitration fees.

MISCELLANEOUS

    1. 1. Renewal of an existing BHW contract will be under the terms of the then current contract in use and approved by the Texas Real Estate Commission. This contract shall be non-cancelable, except BHW may cancel for the following reasons: 2. Duplex, triplex and four-plex coverage is available in Basic Coverage only, unless a separate Service Contract is issued for any individual unit with upgrades or Optional Coverage. If this contract is for duplex, triplex, or four-plex dwelling, then every unit within such dwelling must be covered by this contract for protection to apply to common systems. If this contract is for a dwelling within a multiple unit of 5 dwelling units or more, then only items contained within the confines of each individual unit are covered, and common systems and appliances are excluded. Access to equipment must be in compliance with current codes. Ladder access must not exceed sixteen feet

      1. non-payment of contract or trade call fees;

      2. fraud or misrepresentation of facts material to the issuance of this contract;

      3. if the Contract Holder is verbally or physically abusive to any BHW employee or Service Contractor; or

      4. upon mutual agreement by BHW and the Contract Holder. If this contract is canceled, the client shall be entitled to a pro rata refund of the paid contract fee for the unexpired term, less an administrative fee of $50 less any service, equipment and material costs incurred by BHW, valued at full retail value, not to exceed face value of contract. BHW may renew this contract at its discretion. For Buyer’s contracts, if offered a renewal, Contract Holder will be offered a renewal at the first year Buyer’s rate, but additional renewal rates may be subject to change. If paying with a credit card or ACH bank draft for a monthly or semi-annual payment, Contract Holder agrees to allow BHW to process continued recurring payments until cancelled in writing by Contract Holder. Contract holder is responsible for full payment of contract term.

    2. Duplex, triplex and four-plex coverage is available in Basic Coverage only, unless a separate Service Contract is issued for any individual unit with upgrades or Optional Coverage. If this contract is for duplex, triplex, or four-plex dwelling, then every unit within such dwelling must be covered by this contract for protection to apply to common systems. If this contract is for a dwelling within a multiple unit of 5 dwelling units or more, then only items contained within the confines of each individual unit are covered, and common systems and appliances are excluded. Access to equipment must be in compliance with current codes. Ladder access must not exceed sixteen feet

    3. Installment payments will bear additional processing fees of $10.00 per payment processed. This contract is issued pursuant to a license granted by the Texas Real Estate Commission, and complaints in connection with this contract may be directed to the Commission at P.O. Box 12188, Austin, TX 78711-2188, 512-936-3049. The purchase of a residential service contract is optional and similar coverage may be purchased through other residential service companies or insurance companies authorized to transact business in Texas.

NOTICE: YOU, THE BUYER, HAVE OTHER RIGHTS AND REMEDIES UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT WHICH ARE IN ADDITION TO ANY REMEDY WHICH MAY BE AVAILABLE UNDER THIS CONTRACT. FOR MORE INFORMATION CONCERNING YOUR RIGHTS, CONTACT THE CONSUMER PROTECTION DIVISION OF THE ATTORNEY GENERAL’S OFFICE, YOUR LOCAL DISTRICT OR COUNTY ATTORNEY OR THE ATTORNEY OF YOUR CHOICE.

Accepted:

 

 

BY_______________________________ Effective date: (Any homeowner may sign this agreement)