SAMPLE CONTRACT

HARMONYHOMEWARRANTY.COM

This Service Agreement, hereinafter referred to as the “Agreement” or “service contract”, is issued by the entity listed for your state on the Coverage Summary page. Such entity is hereinafter referred to as “HHW”, “we”, “us”, and/or “our”, or “provider”. The owner of the property covered by this Agreement is hereinafter referred to as “you” and/or “your”, or “contract holder”. HHW offers home service contracts, which are not warranties. Terms may vary in different states. HHW reserves the right to revise this Agreement at any time and you are deemed to be apprised of and bound by any changes to this Agreement. For the most updated version of this agreement visit HarmonyHomeWarranty.com/customer-portal

 

I.              BASIS FOR COVERAGE

During the term of this Agreement, we agree to pay the covered costs to repair or replace the items listed as covered on your Agreement Coverage Summary if any such items become inoperable due to mechanical failure caused by normal wear and tear.  Determination of Coverage including the operational condition as of the Agreement effective date for any claim will be made solely by us, considering but not limited to, our independent contractor’s diagnosis, hereinafter referred to as the “Service Contractor”.  This Agreement does not cover any known or unknown pre-existing conditions.  It is understood that WE ARE NOT A SERVICE CONTRACTOR and is not itself undertaking to repair or replace any such systems or components. This Agreement covers single-family homes, new construction homes, condominiums, townhomes, and mobile homes under 5,000 square feet, unless an alternative dwelling type (i.e. above 5,000 square feet or multi-unit home) is applied, and appropriate fees are paid. 

A.             Become inoperable due to normal wear and tear; and

B.             Are in place and in proper working order on the effective date of this Agreement; and

C.            Are located inside the confines of the main foundation of the home or attached or detached garage, with the exception of the air conditioner, exterior pool/spa, septic system, and well pump.

 

II.             TERM

Coverage starts 30 days after acceptance of application by us and receipt of applicable Agreement fees and continues for 365 days from that date.  We reserve the right to waive the 30-day grace period so long as you provide proof or prior coverage, showing no lapse of coverage, from another home service provider.  Waiving of the 30-day waiting period is at the sole discretion of us.     

 

III.            REQUESTING SERVICE – CALL 800-724-8618

A.             We must be notified as soon as the malfunction is discovered and prior to expiration of the Agreement.  You can request service by calling 800-724-8618.  We will accept service requests 24 hours a day, 7 days a week.  We will not provide service until all past due Trade Service Call Fees and Plan Fees are made current.

B.             Upon request for service under normal circumstances, we will contact an authorized Service Contractor within two (2) days during normal business hours and four (4) days on weekends and holidays after you request service. The authorized Service Contractor will contact you to schedule a mutually convenient appointment during normal business hours. We will determine what repairs constitute an emergency and will make reasonable efforts to expedite emergency service.  We will accept your request to expedite scheduling of non-emergency service only when a Service Contractor is available.  If the Service Contractor agrees to expedite scheduling of a non-emergency service request, you may be required to pay an additional fee.

C.            We have the sole and absolute right to select the Service Contractor to perform the service.  We will not reimburse for services performed without its prior approval.

D.            We reserve the right to obtain a second opinion at our expense.  In the event that we inform you the malfunction is not covered under this Agreement, you have the right to request a second opinion of the cause of the malfunction.  You must ask us for a second opinion from another Service Contractor within seven (7) days from us informing you the malfunction is not covered.  In the event that the outcome of the second opinion is different than the first opinion, then we may, in our discretion, decide whether to accept Coverage under this Agreement. If you request a second opinion, you will be responsible for the payment of an additional Trade Service Call Fee only if the outcome of the second opinion is the same as the initial opinion.

E.             In the event we authorize or request you to contact an independent service contractor to perform a covered service, we will provide reimbursement for an authorized amount of the cost you incur for the repair or replacement services.  Acceptable proof of the repair and your actual itemized costs must be provided to and approved by us before any reimbursement will be paid.  We are not responsible for expenses you incur without our express consent.  We will not reimburse you for any costs associated with unauthorized repairs or work performed by unauthorized contractors.

F.             If service work performed under this contract should fail, then we will make the necessary repairs without an additional Trade Service Call Fee for a period of 90 days on parts and 30 days on labor.

 

IV.            TRADE SERVICE CALL FEE

NOTE: The amount of your Trade Service Call Fee is listed on your Agreement Coverage Summary.

A.             You are required to pay a Trade Service Call Fee for each trade service request you submit to us.

B.             The Trade Service Call Fee applies to each call dispatched and scheduled, including but not limited to those calls where Coverage is approved or denied, included or excluded, covered or not covered.  The Trade Service Call Fee also applies in the event you fail to be present at a scheduled time, or in the event you cancel a service request at the time a Service Contractor is in route to your home or at your home.  Failure to pay the Trade Service Call Fee will result in suspension or cancellation of Agreement until such time as the proper Trade Service Call Fee is paid.  At that time, the Agreement may be reinstated; however, the contract period will not be extended.

C.            If a particular repair or replacement fails within 30 days, we will send a Service Contractor to repair the failure and you will not be charged an additional Trade Service Call Fee.

 

V.             COVERAGE

Coverage is dependent on plan you selected. Please refer to your Agreement Coverage Summary page.  Coverage is for no more than one (1) unit, system, or appliance, unless additional fees are paid or specified otherwise.  If no additional fees are paid, covered unit, system, or appliance is at our sole discretion.  Certain limitations of liability apply to covered systems and appliances.

A.             Air Conditioning System

Note: Coverage available on Air Conditioning units up to a 5-ton capacity, and for residential use only.

COVERED: Mechanical parts and components of two (2) ducted electric central air conditioning systems. All components and parts for units below 13 SEER and/or R-22 equipment, and when we are unable to facilitate repair and/or replacement of failed covered equipment at the current SEER rating or with R-22 equipment, repair and/or replacement will be performed with 13 SEER/R410A equipment and/or 7.7 HSPF or higher compliant,

B.             Heating System

Note: Coverage available on units up to a 5-ton capacity, and for residential use only.

COVERED: Mechanical parts and components of two (2) systems, either hot water and steam heating system or centrally ducted forced air gas/electric/oil heating system or electric baseboard units, if providing the primary source of heat in dwelling, as follows: accessible ductwork from covered heating unit to point of attachment to register/grill; blower fan motors; burners; controls; fan blades; heat/cool thermostats (programmable and electronic set back units will be replaced only with standard units); heating elements; ignitor and pilot assemblies; internal system controls; wiring; and relays; motors (excludes dampers); and switches. Electric baseboard units are covered if they are the primary source of heating for the property.

C.            Refrigerator

Note: Refrigerator must be located in the kitchen.

COVERED: All components and parts, including integral freezer unit,

D.            Clothes Washer

COVERED: All components and parts,

E.             Clothes Dryer

COVERED: All components and parts,

F.             Plumbing System and Stoppage

Note: Mainline stoppages are only covered if there is an accessible ground level cleanout.

COVERED: Leaks and breaks of water, drain, gas, waste or vent lines, except if caused by freezing or roots; toilet tanks, bowls and mechanisms within the toilet tank (replaced with builder’s grade as necessary); toilet wax ring seals; built-in bathtub whirlpool motor and pump assemblies; stoppages and/or clogs in drain and sewer lines up to 100 feet from access point. Repair and finish of any walls or ceilings where it is necessary to break through to effect repair is only covered to the following extent: repair of walls or ceilings to rough finish up to $1500 per claim. Rough finish is defined to include hanging of drywall, patching of drywall, stucco, and lath. Repair to rough finish does not include supplies or labor for paint, sanding, wall texture, wallpaper and/or tile work.

G.            Water Heater

COVERED: All components and parts for gas and/or electric hot water heaters, including circulating pumps,

H.            Whirlpool Bathtub

COVERED: Mechanical parts and components including accessible electrical controls; accessible plumbing lines; air pumps; gaskets; and primary circulation pump and motor.

I.              Electrical System

COVERED: All components and parts,

J.             Oven/Range/Stove/Cooktop

COVERED: All mechanical components and parts,

K.             Built-In Microwave

COVERED: All mechanical components and parts,

L.             Dishwasher

COVERED: All mechanical components and parts,

M.            Garbage Disposal

COVERED: All components and parts, including entire unit,

N.            Trash Compactor

COVERED: All components and parts,

O.            Ductwork

COVERED: Duct from heating and air conditioning unit to point of attachment at registers or grills,

P.             Garage Door Opener

Note: Coverage is for no more than one (1) unit, system, or appliance, unless additional fees are paid. Coverage pertains strictly to belt drive units, jack shaft units are excluded

COVERED: All components and parts,

Q.            Ceiling and Exhaust Fans

Note: Coverage is for no more than two (2) units, systems, or appliances, unless additional fees are paid. Builder's standard equipment is used when replacement is necessary.

COVERED: Motors; switches; controls; bearings,

 

VI.            OPTIONAL COVERAGE

Optional Coverage requires additional payment per item, system, or appliance.  You may purchase any Optional Coverage for up to 30 days after commencement of Coverage. However, Coverage shall not commence until receipt of payment by us and such Coverage shall expire upon expiration of Coverage period in section II.

A.             Pool/Spa Equipment

Note: Shared equipment is covered. If equipment is not shared, then only one or the other is covered unless an additional fee is paid.

COVERED: Above ground components and parts of the pumping, and filtration system including pool sweep motor and pump; pump motor; blower motor and timer; filter; filter timer; gaskets; timer; valves, limited to back flush, actuator, check, and 2 and 3-way valves; relays and switches; above ground plumbing pipes and wiring,

B.             Limited Roof Leak

Note: Coverage applies to single family homes only.

COVERED: Repair of shake and composition roof leaks over the occupied living area.

C.            Central Vacuum

COVERED: All mechanical components and parts,

D.            Sump Pump

COVERED: Mechanical parts and components of permanently installed sump pump for groundwater, within the foundation of the home or attached garage,

E.             Well Pump

COVERED: All components and parts of well pump utilized as a main source of water to the home,

F.             Septic System

COVERED: Sewage ejector pump for septic system only; jet pump; aerobic pump. Clearing of stoppages within the connecting waste line (leading from the house to the primary septic tank) which are attributable to normal wear and tear and can be accessed through an existing clean out without excavation.

G.            Septic Tank Pumping

COVERED: The septic tank will be pumped once during the Agreement term if the stoppage is due to septic back up only. Coverage applies to main line stoppages and/or clogs and must have existing access or clean out. Coverage can only become effective if a septic certification was completed within 90 days prior to the close of sale. We reserve the right to request a copy of the certification prior to service dispatch.

H.            Second Refrigerator

COVERED: All components and parts, including integral freezer unit,

I.              Stand Alone Freezer

COVERED: All components and parts,

J.             Water Softener

COVERED: Mechanical parts and components of basic single water softener unit, including central head assembly; multi-level/twin softeners; piping to and from unit(s) and system tanks.

K.             Refrigerator Ice Maker

COVERED: Mechanical components and parts related to the kitchen refrigerator ice maker only,

L.             Free Standing Ice Maker

COVERED: All mechanical components and parts,

M.            GREENguard™

COVERED: If a covered system or appliance (limited to Clothes Washer, Clothes Dryer, Refrigerator, and Dishwasher) fails per section I above and subject to all other Agreement inclusions, exclusions and limitations, and it cannot be repaired, we will replace the appliance with an ENERGY STAR qualified product (subject to availability, exclusions and limitations), one with similar and like features as existing appliance,

N.            Lawn Sprinkler System

Note: Coverage is for lawn sprinkler systems only.

COVERED: Timers; valves; stoppages,

 

VII.           GENERAL LIMITATIONS OF LIABILITY

A.             The following are not included during the contract term; (i) malfunction or improper operation due to rust or corrosion of all systems and appliances, (ii) collapsed ductwork, (iii) known or unknown pre-existing conditions, deficiencies and/or defects.

B.             We are not responsible for the repair of any cosmetic defects or performance of routine maintenance.

C.            You agree that we are not liable for the negligence or other conduct of the Service Contractor, nor are we an insurer of Service Contractor’s performance. You also agree that we are not liable for consequential, incidental, indirect, secondary, or punitive damages. You expressly waive the right to all such damages. Your sole remedy under this Agreement is recovery of the cost of the required repair or replacement, whichever is less. You agree that, in no event, will our liability exceed $15,000 per contract item for access, diagnosis, repair and/or replacement.

 

VIII.         MULTIPLE UNITS AND INVESTMENT PROPERTIES

A.             If the Agreement is for 2-family, 3-family, or 4-family dwelling, then every unit within such dwelling must be covered by the Agreement with applicable Optional Coverage for Coverage to apply to shared systems and appliances.

B.             If this Agreement is for a unit within a multiple unit of five (5) or more, then only items contained within the confines of each individual unit are covered. Shared systems and appliances are excluded.

C.            Except as otherwise provided in this section, shared systems and appliances are excluded.

 

IX.            MEDIATION

In the event of a dispute over claims or Coverage you agree to file a written informal claim with us and allow us twenty (20) calendar days to respond to the claim. The parties agree to mediate in good faith before resorting to mandatory arbitration. All written claims should be mailed to HARMONY HOME WARRANTY, LLC, Mediation Department, 90 East Halsey Road Suite 333 #171 or e-mailed to support@HarmonyHomeWarranty.com .Except where prohibited, if a dispute arises from or relates to this Agreement or its breach, and if the dispute cannot be settled through direct discussions you agree that:

A.             Any and all disputes, claims and causes of action arising out of or connected with this Agreement shall be resolved individually, without resort to any form of class action, and exclusively by the American Arbitration Association under its Commercial Mediation Rules. Controversies or claims shall be submitted to arbitration regardless of the theory under which they arise, including without limitation contract, tort, common law, statutory, or regulatory duties or liability.

B.             Any and all claims, judgments and awards shall be limited to actual out-of-pocket costs incurred to a maximum of $1000 per claim, but in no event attorneys' fees.

C.            Under no circumstances will you be permitted to obtain awards for, and you hereby waive all rights to claim, indirect, punitive, incidental and consequential damages and any other damages, other than for actual out-of-pocket expenses, and any and all rights to have damages multiplied or otherwise increased. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement, shall be governed by, and construed in accordance with, the laws of the State of New Jersey, U.S.A. without giving effect to any choice of law or conflict of law rules (whether of the State of New Jersey or any other jurisdiction), which would cause the application of the laws of any jurisdiction other than the State of New Jersey.

D.            Any claim 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 PARTY TO A CLASS OR REPRESENTATIVE ACTION, HOWEVER, THEY UNDERSTAND AND CHOOSE TO HAVE ANY CLAIMS DECIDED INDIVIDUALLY, THROUGH ARBITRATION.

 

X.             SEVERABILITY

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

 

XI.            RENEWALS AND TRANSFER OF AGREEMENT

A.             HHW may, in its sole discretion, elect to renew this Agreement for a one year contract term, unless otherwise approved by HHW . In the event we elect to renew your Agreement, you will be notified of the terms within sixty (60) days prior to expiration of your Agreement. Unless you notify HHW prior to expiration of your Agreement, your Agreement will be automatically renewed and you will be charged applicable plan fees.

B.             If you select the monthly payment option and we elect to renew your Agreement, we will notify you of applicable rate and terms of renewal during the tenth month of your Agreement. You will automatically be renewed for a monthly coverage period unless you notify us in writing thirty (30) days prior to the expiration of the Agreement. Your first payment for the next contract term will be construed as authorization for month-to-month charges.

C.            If your covered property is sold during the term of this Agreement, you must notify us of the change in ownership and submit the name of the new owner by phoning 1- 800-724-8618 in order to transfer Agreement to the new owner.

D.            You may transfer this Agreement at any time.  There is no fee to transfer the Agreement.

 

XII.           CANCELLATION

A.             This Agreement may be cancelled by HHW for the following reasons: (i) nonpayment of Agreement fees or other breach of this Agreement by the customer; (ii) nonpayment of Trade Service Call Fee, as stated in section IV; (iii) fraud or misrepresentation by the customer and/or customer representative of facts material to HHW’s issuance of this Agreement; or (iv) a change in laws or regulations that has a material effect on the business of HHW or HHW’s ability to fulfill its obligations under this Agreement.

B.             You may cancel this Agreement within the first thirty (30) days of the order date for a full refund of the paid contract fees, less any service costs incurred by us.

C.            XII. CANCELLATION A. This Agreement may be cancelled by HHW for the following reasons: (i) nonpayment of Agreement fees or other breach of this Agreement by the customer; (ii) nonpayment of Trade Service Call Fee, as stated in section IV; (iii) fraud or misrepresentation by the customer and/or customer representative of facts material to HHW’s issuance of this Agreement; or (iv) a change in laws or regulations that has a material effect on the business of HHW or HHW’s ability to fulfill its obligations under this Agreement. B. You may cancel this Agreement within the first thirty (30) days of the order date for a full refund of the paid contract fees, less any service costs incurred by us. C. Mutual agreement of us and you. If this Agreement is canceled after thirty (30) days, you shall be entitled to a pro rata refund at the standard contract fee rate for the unexpired term, less a $100 administrative fee and any service costs incurred by us. At HHW's sole discretion a cancellation release form may be requested and if so it will be mandatory to both complete this form and abide by its terms. If we have provided services and the amount of the service costs incurred by us is greater than the contract fees paid, then no refund will be due to you. ​ If a refund calculation results in You owing Us payment for services provided, in states where permitted we may bill You for the greater of the net amount due to Us or the unpaid annual term contract fee. We will bill or you any balance owed to Us through the same mechanism as any previous installment billings, or We will direct bill You if such a mechanism is not available.​ All cancellation requests must be submitted in writing.

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