Common use of When Your Coverage Clause in Contracts

When Your Coverage. Applies 1. We agree to pay the covered costs to repair or replace the items listed as covered on your Agreement Coverage Summary Page if any such items become inoperable during the term of this Agreement due to mechanical failure caused by routine wear and tear. The definitions of the specific items that may be listed on your Agreement Coverage Summary Page as covered, as well as other limitations on coverage and other terms and conditions, are listed below. 2. We will cover mechanical failures relating to the mechanical parts and components of those domestic-grade items that were in the home and in proper operating condition on the Agreement effective date. 3. We will cover failures due to rust and corrosion, and or sediment. 4. When completing a covered repair or replacement, we will NOT pay the cost to: • dismantle and remove defective equipment, • recapture refrigerant, • reclaim refrigerant, • dispose of refrigerant. 5. We will cover an unknown pre-existing mechanical failure provided the failure could not have been detected by visual inspection or simple mechanical test. 6. The decision to replace rather than repair items is solely our option. Should we choose to replace an item, the replacement shall: • be the base model that meets all applicable federally mandated minimal manufacturers’ standards, • perform the same primary function, and have a capacity comparable with the covered item, when available with domestically assembled units. When replacing systems and appliances: • We are not liable to provide exact match in color, dye, lot, material, type or brand. • 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 except as otherwise specified in this Agreement. • 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. When making repairs: • We reserve the right to rebuild existing parts or components and/or install rebuilt or refurbished parts or components. 7. Our cash payment policies and procedures: • In instances where the combined cost of diagnosis and repair or replacement is estimated to exceed a stated contract dollar limit, we will not provide repair or replacement services but will instead pay an amount equal to the contract dollar limit minus the deductible amount. If the stated contract dollar limit is an aggregate amount then paid claims will also be subtracted from payment. • In some instances, we may offer cash in lieu of repair or replacement services. This offered amount is based on what we would expect to pay (which is substantially less than retail cost) for parts and labor for covered items less the incurred cost of the contractor’s diagnosis. You are required to repair the item or provide a new replacement and send the acceptable proof of your actual itemized costs to us before any reimbursement amount will be paid. 8. Should we determine to pay cash in lieu of replacement and you only repair the item instead, the item will be excluded from further coverage under this Agreement and subsequent renewals. We reserve the right to inspect repaired and/or replacement items. 9. Determination of the operating condition as of the Agreement effective date, and the nature of any failure, will be made by us based upon the professional opinion of remote diagnosis for connected systems and/or appliances or our direct employees, considering but not limited to, the independent contractor’s diagnosis.

When Your Coverage. Applies 1. We agree to pay the covered costs to repair or replace the items Items listed as covered on your Agreement Coverage Summary Page if any such items Items become inoperable during the term of this Agreement due to mechanical failure Mechanical Failure caused by routine wear and tear. We are not responsible for repairing or replacing Items, assembly or parts that do not contribute to the primary function of that Item or required for mechanical functionality. The definitions of the specific items Items that may be listed on your Agreement Coverage Summary Page as covered, as well as other limitations on coverage and other terms and conditions, are listed below. 2. Your Agreement type, effective date and expiration date are listed on your Agreement Coverage Summary Page. Types of Coverage are as follows: Type of Coverage Effective Dates Seller Coverage Effective immediately upon our receipt and verification of the enrollment for the Covered Property and continues for the remaining term of the listing agreement, not to exceed one hundred and eighty (180) days. Buyer Conversion Coverage Seller Coverage that has converted to Buyer Coverage after closing of the Covered Property, is effective on the date of closing of the applicable real estate transaction. 3. We will cover mechanical failures Mechanical Failures relating to the mechanical parts and components of those domesticDomestic-grade items Grade Items that were in the home Covered Property and in proper operating condition Proper Operating Condition on the Agreement effective date. 34. We will cover failures Mechanical Failures due to rust sediment. Rust and corrosion, and or sediment.corrosion are not covered under the Seller Coverage 45. When completing a covered repair or replacement, we will NOT not pay the cost to: • dismantle and remove defective equipment, • recapture refrigerant, • reclaim refrigerant, • dispose of refrigerant.: 56. We will cover an unknown Unknown pre-existing mechanical failure provided Mechanical Failure is not covered under the failure could not have been detected by visual inspection or simple mechanical testSeller Coverage. 67. The decision to replace rather than repair items Items is solely our option. Should we choose to replace an itemItem, the replacement shall: • be the base model that meets all applicable federally mandated minimal manufacturers’ standards, • perform the same primary function, and have a capacity comparable with the covered itemItem, when available with domestically assembled units. 8. When replacing systems and appliances: • We are not liable to provide exact match in color, dye, lot, material, type or brand. • 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 except as otherwise specified in this Agreement. • 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: 9. When making repairs: • We , we reserve the right to rebuild existing parts or components and/or install aftermarket, rebuilt or refurbished parts or components. 710. Our cash Alternate Claim Dispositions: (a) In some instances, in lieu of authorizing the repair or replacement services for a claim made under this Agreement, we will elect to remit a payment policies to you as the final disposition of the subject claim (hereinafter a “Claim Buyout”). The decision to elect a Claim Buyout rather than replacing or repairing Items is solely our option. The Claim Buyout amount will be strictly calculated based on: (i) our costs for the parts required to repair the Item to return it to Proper Operating Condition; or (ii) our costs to replace Items; and procedures: • (iii) our estimated labor costs for our in-network Service Professional to perform the repair or replacement services. (b) In instances some instances, where the our estimated combined cost costs of diagnosis and the performance of the repair or replacement is estimated to exceed services exceeds a stated contract dollar limitlimit in this Agreement, we will not provide perform the repair or replacement services; but will instead elect to remit a payment to you in the amount equal to the applicable dollar limit stated in this Agreement as the final disposition of the subject claim. If the applicable stated dollar limit in this Agreement is an aggregate amount, then all prior claims paid under this Agreement will be subtracted from the applicable stated aggregate dollar limit, with the remainder to be payable to you. (c) Our costs for parts, replacement Items and Service Professionals’ labor are substantially less than typical retail costs and Claim Buyout payments will not be adjusted to match the costs/pricing of out-of network Service Professionals to perform the same repair or replacement services but and or the retail price of parts or replacement Items. (d) Any payment remitted to you pursuant to this Agreement will instead pay an be less the applicable deductible amount equal if not yet paid for the applicable claim. (e) Any payment remitted to you will not include any costs not covered under the contract dollar limit minus terms of this Agreement. (f) Should we remit payment to you for the deductible amount. If the stated contract dollar limit is an aggregate amount then paid claims will also be subtracted from payment. • In some instances, we may offer cash in lieu of repair or replacement services. This offered amount is based on what we would expect to pay of an Item and you: (which is substantially less than retail costi) for parts and labor for covered items less the incurred cost of the contractor’s diagnosis. You are required to do not repair the item or provide a new replacement and send the acceptable proof of your actual itemized costs to us before any reimbursement amount will be paid. 8. Should we determine to pay cash in lieu of replacement and you Item; (ii) only repair the item insteadan Item that was diagnosed to be replaced; or (iii) replace an Item with a used or refurbished Item, the item subject Item will be excluded from further coverage under this Agreement and all subsequent renewals. We reserve the right to inspect repaired and/or replacement itemsreplaced Items. 911. Determination of the operating condition as of the Agreement effective date, and the nature of any failure, will be made by us based upon the professional opinion of remote diagnosis for connected systems and/or appliances or our direct employees, considering but not limited to, the independent contractorService Professional’s diagnosis. 12. We will use reasonable efforts to provide an in-network Service Professional to service your claim(s). In limited circumstances, and in our sole discretion, we may authorize your claim to be serviced by out-of-network service provider. In the event you have received authorization to use an out-of-network service provider for a particular claim, we will require the following: (i) the diagnosis of the Item must be promptly communicated to us; and (ii) a detailed estimate/quote (inclusive of all parts, equipment and labor costs) from the out-of-network service provider, which must be submitted to us for determination of coverage under this Agreement prior to any work be initiated. (a) We may communicate directly with the out-of-network service provider to obtain additional information with respect to the Item diagnosis and the estimated repair or replacement services required to return the Item to Proper Operating Condition. (b) In the event you have a separate replacement deductible for an Item, you will be required to remit payment prior to the replacement Item. All stated dollar limits in this Agreement, will apply to the services to be performed by the out-of-network service provider. The limitation of liability provisions of this Agreement will apply to the out-of-network service provider to same extent as it would with an in-network Service Professional. We are not liable for any damages that result from an out-of-network service provider’s performance. We are not responsible for any expenses you incur without our PRIOR express consent/authorization. We will not reimburse you for any costs associated with unauthorized repairs, replacements or work performed by out-of-network service providers that are not covered by the terms of this Agreement. Once our records reflect that you have acknowledged and accepted the conditions set forth above, the repair or replacement services to be performed by an out-of-network service provider, will be approved by us. Note that any payment remitted to you pursuant to this Agreement will be less the applicable deductible amount if not yet paid for the applicable claim.

When Your Coverage. Applies 1. We agree to pay the covered costs to repair or replace the items Items listed as covered on your Agreement Coverage Summary Page if any such items Items become inoperable during the term of this Agreement due to mechanical failure Mechanical Failure caused by routine wear and tear. We are not responsible for repairing or replacing Items, assembly or parts that do not contribute to the primary function of that Item or required for mechanical functionality. The definitions of the specific items Items that may be listed on your Agreement Coverage Summary Page as covered, as well as other limitations on coverage and other terms and conditions, are listed below. 2. Your Agreement type, effective date and expiration date are listed on your Agreement Coverage Summary Page. Types of Coverage are as follows: Type of Coverage Effective Dates Seller Coverage Effective immediately upon our receipt and verification of the enrollment for the Covered Property and continues for the remaining term of the listing agreement, not to exceed one hundred and eighty (180) days. Buyer Conversion Coverage Seller Coverage that has converted to Buyer Coverage after closing of the Covered Property, is effective on the date of closing of the applicable real estate transaction. 3. We will cover mechanical failures Mechanical Failures relating to the mechanical parts and components of those domesticDomestic-grade items Grade Items that were in the home Covered Property and in proper operating condition Proper Operating Condition on the Agreement effective date. 34. We will cover failures Mechanical Failures due to rust sediment. Rust and corrosion, and or sediment.corrosion are not covered under the Seller Coverage 45. When completing a covered repair or replacement, we will NOT not pay the cost to: • dismantle and remove defective equipment, • recapture refrigerant, • reclaim refrigerant, • dispose of refrigerant.: 56. We will cover an unknown Unknown pre-existing mechanical failure provided Mechanical Failure is not covered under the failure could not have been detected by visual inspection or simple mechanical testSeller Coverage. 67. The decision to replace rather than repair items Items is solely our option. Should we choose to replace an itemItem, the replacement shall: • be the base model that meets all applicable federally mandated minimal manufacturers’ standards, • perform the same primary function, and have a capacity comparable with the covered itemItem, when available with domestically assembled units. 8. When replacing systems and appliances: • We are not liable to provide exact match in color, dye, lot, material, type or brand. • 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 except as otherwise specified in this Agreement. • 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: 9. When making repairs: • We , we reserve the right to rebuild existing parts or components and/or install aftermarket, rebuilt or refurbished parts or components. 710. Our cash Alternate Claim Dispositions: (a) In some instances, in lieu of authorizing the repair or replacement services for a claim made under this Agreement, we will elect to remit a payment policies to you as the final disposition of the subject claim (hereinafter a “Claim Buyout”). The decision to elect a Claim Buyout rather than replacing or repairing Items is solely our option. The Claim Buyout amount will be strictly calculated based on: (i) our costs for the parts required to repair the Item to return it to Proper Operating Condition; or (ii) our costs to replace Items; and procedures: • (iii) our estimated labor costs for our in-network Service Professional to perform the repair or replacement services. (b) In instances some instances, where the our estimated combined cost costs of diagnosis and the performance of the repair or replacement is estimated to exceed services exceeds a stated contract dollar limitlimit in this Agreement, we will not provide perform the repair or replacement services; but will instead elect to remit a payment to you in the amount equal to the applicable dollar limit stated in this Agreement as the final disposition of the subject claim. If the applicable stated dollar limit in this Agreement is an aggregate amount, then all prior claims paid under this Agreement will be subtracted from the applicable stated aggregate dollar limit, with the remainder to be payable to you. (c) Our costs for parts, replacement Items and Service Professionals’ labor are substantially less than typical retail costs and Claim Buyout payments will not be adjusted to match the costs/pricing of out-of network Service Professionals to perform the same repair or replacement services but and or the retail price of parts or replacement Items. (d) Any payment remitted to you pursuant to this Agreement will instead pay an be less the applicable deductible amount equal if not yet paid for the applicable claim. (e) Any payment remitted to you will not include any costs not covered under the contract dollar limit minus terms of this Agreement. (f) Should we remit payment to you for the deductible amount. If the stated contract dollar limit is an aggregate amount then paid claims will also be subtracted from payment. • In some instances, we may offer cash in lieu of repair or replacement services. This offered amount is based on what we would expect to pay of an Item and you: (which is substantially less than retail costi) for parts and labor for covered items less the incurred cost of the contractor’s diagnosis. You are required to do not repair the item or provide a new replacement and send the acceptable proof of your actual itemized costs to us before any reimbursement amount will be paid. 8. Should we determine to pay cash in lieu of replacement and you Item; (ii) only repair the item insteadan Item that was diagnosed to be replaced; or (iii) replace an Item with a used or refurbished Item, the item subject Item will be excluded from further coverage under this Agreement and all subsequent renewals. We reserve the right to inspect repaired and/or replacement itemsreplaced Items. 911. Determination of the operating condition as of the Agreement effective date, and the nature of any failure, will be made by us based upon the professional opinion of remote diagnosis for connected systems and/or appliances or our direct employees, considering but not limited to, the independent contractorService Professional’s diagnosis. 12. If your Item is deemed inoperable and the parts necessary to repair the Item are not available, we will remit a Claim Buyout payment to you. The Claim Buyout amount will be strictly calculated based on: (i) our costs for the parts required to repair the Item to return it to Proper Operating Condition; and (ii) our estimated labor costs for our in-network Service Professional to perform the repair service. The Item will no longer be eligible for coverage under this Agreement until such time you replace the Item with a new purchase. 13. We will use reasonable efforts to provide an in-network Service Professional to service your claim(s). In limited circumstances, and in our sole discretion, we may authorize your claim to be serviced by out-of-network service provider. In the event you have received authorization to use an out-of-network service provider for a particular claim, we will require the following: (i) the diagnosis of the Item must be promptly communicated to us; and (ii) a detailed estimate/quote (inclusive of all parts, equipment and labor costs) from the out-of-network service provider, which must be submitted to us for determination of coverage under this Agreement prior to any work be initiated. (a) We may communicate directly with the out-of-network service provider to obtain additional information with respect to the Item diagnosis and the estimated repair or replacement services required to return the Item to Proper Operating Condition. (b) In the event you have a separate replacement deductible for an Item, you will be required to remit payment prior to the replacement Item. All stated dollar limits in this Agreement, will apply to the services to be performed by the out-of-network service provider. The limitation of liability provisions of this Agreement will apply to the out-of-network service provider to same extent as it would with an in-network Service Professional. We are not liable for any damages that result from an out-of-network service provider’s performance. We are not responsible for any expenses you incur without our PRIOR express consent/authorization. We will not reimburse you for any costs associated with unauthorized repairs, replacements or work performed by out-of-network service providers that are not covered by the terms of this Agreement. Once our records reflect that you have acknowledged and accepted the conditions set forth above, the repair or replacement services to be performed by an out-of-network service provider, will be approved by us. Note that any payment remitted to you pursuant to this Agreement will be less the applicable deductible amount if not yet paid for the applicable claim.

When Your Coverage. Applies 1. We agree to pay the covered costs to repair or replace the items listed as covered on your Agreement Coverage Summary Page if any such items become inoperable during the term of this Agreement due to mechanical failure caused by routine wear and tear. The definitions of the specific items that may be listed on your Agreement Coverage Summary Page as covered, as well as other limitations on coverage and other terms and conditions, are listed below. 2. We will cover mechanical failures relating to the mechanical parts and components of those domestic-grade items that were in the home and in proper operating condition on the Agreement effective date. 3. We will cover failures due to rust and corrosion, and or sediment. 4. When completing a covered repair or replacement, we will NOT pay the cost to: •  dismantle and remove defective equipment, •  recapture refrigerant, •  reclaim refrigerant, •  dispose of refrigerant. 5. We will cover an unknown pre-existing mechanical failure provided the failure could not have been detected by visual inspection or simple mechanical test. 6. The decision to replace rather than repair items is solely our option. Should we choose to replace an item, the replacement shall: •  be the base model that meets all applicable federally mandated minimal manufacturers’ standards, •  perform the same primary function, and have a capacity comparable with the covered item, when available with domestically assembled units. When replacing systems and appliances: •  We are not liable to provide exact match in color, dye, lot, material, type or brand. •  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 except as otherwise specified in this Agreement. •  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. When making repairs: •  We reserve the right to rebuild existing parts or components and/or install rebuilt or refurbished parts or components. 7. Our cash payment policies and procedures: •  In instances where the combined cost of diagnosis and repair or replacement is estimated to exceed a stated contract dollar limit, we will not provide repair or replacement services but will instead pay an amount equal to the contract dollar limit minus the deductible amount. If the stated contract dollar limit is an aggregate amount then paid claims will also be subtracted from payment. •  In some instances, we may offer cash in lieu of repair or replacement services. This offered amount is based on what we would expect to pay (which is substantially less than retail cost) for parts and labor for covered items less the incurred cost of the contractor’s diagnosis. You are required to repair the item or provide a new replacement and send the acceptable proof of your actual itemized costs to us before any reimbursement amount will be paid. 8. Should we determine to pay cash in lieu of replacement and you only repair the item instead, the item will be excluded from further coverage under this Agreement and subsequent renewals. We reserve the right to inspect repaired and/or replacement items. 9. Determination of the operating condition as of the Agreement effective date, and the nature of any failure, will be made by us based upon the professional opinion of remote diagnosis for connected systems and/or appliances or our direct employees, considering but not limited to, the independent contractor’s diagnosis.