New from American Home Shield HEATING AND AIR CONDITIONING 5-YEAR LABOR EXTENDED SERVICE AGREEMENTS Customer Guide Last updated June 2012 В© 2012 American Home Shield Corporation and its licensed subsidiaries. TABLE OF CONTENTS About Extended Service Agreements................................................................................................................................3 What Is Covered..........................................................................................................................................................................4 What Is Not Covered.................................................................................................................................................................5 What To Do If You Need Heating And Air Conditioning Repairs.............................................................................6 Renewable Coverage.................................................................................................................................................................6 Maintenance..................................................................................................................................................................................7 Repair Or Replacement Policy/Authorization..................................................................................................................7 About American Home Shield...............................................................................................................................................8 Frequently Asked Questions............................................................................................................................................9-10 2 HEATING AND AIR CONDITIONING 5-YEAR LABOR EXTENDED SERVICE AGREEMENTS FROM AMERICAN HOME SHIELD A new heating and air conditioning system is a big investment for any homeowner. It makes sense to help protect yourself from labor expenses in the event of malfunctions caused by normal wear and tear. A 5-year labor Heating and Air Conditioning Extended Service Agreement (ESA) works in conjunction with your manufacturerвЂ™s warranty to give you financial protection for one of your homeвЂ™s most expensive systems. ESAs from AHS include standard labor costs for covered heating and air conditioning components while your manufacturerвЂ™s warranty covers stated parts repair and replacement for 5 years. Certain conditions, limitations and exclusions apply. Please carefully read the Extended Service Contract for full coverage details. In addition to budget protection, our ESA offers service convenience and reliability. If you experience a covered heating and air conditioning breakdown, youвЂ™ll know who to call. AHS ESA customers have a dedicated toll-free support line at 855 222 0748 or email esa.contracts@ahslink.com 24/7, 365 days a year. YouвЂ™ll receive a copy of your contract and information you need to understand your coverage, exclusions to coverage* and how the program works. And, if you decide to sell your home during the coverage period, the agreement is fully transferrable (free of charge) to the new homeowner which makes it a great real estate marketing tool. As a homeowner with a lot of responsibilities and obligations, your time and budget can be stretched to the limit. WouldnвЂ™t it be nice to have one less thing to think about? A Heating and Air Conditioning ESA from AHS is a smart, simple solution. Worry less. Live more. * Exclusions to coverage are listed on page 5. 3 What Is Covered Most brands of heating and air conditioning equipment. See list of eligible products below. The recapture and disposal of refrigerant, if necessary. New residential heating and air conditioning equipment under 5 tons installed in single family dwellings. An AHS ESA may be purchased up to 60 days from the original equipment installation date for new equipment only and according to the coverage terms outlined in the contract. All ESA contract applications are subject to approval by AHS before the contract is effective. If the contract is approved, these coverage details and dates apply: All equipment must be the same brand as the manufacturer of the system and must be fully functioning and installed at the same time at the property address listed on the contract. We cover a wide range of equipment types including electric, gas and oil. Furnaces, 410A condensing units, heat pumps, boilers and package units. Standard labor costs for repair and replacement of covered air conditioning and heating components, including: all internal components of the covered unit (except for items specifically listed as вЂњNot CoveredвЂќ). Thermostats, humidifiers and dehumidifiers, if they are part of the standard equipment provided by the manufacturer of the covered unit. This coverage begins on the 91st day after the installation of the covered unit; the installing contractor is required to provide a 90-day labor warranty from the date of installation. AHS will not be responsible for any cost associated with repair or replacement of the covered unit during the initial 90-day period. The expiration date for 5-year Extended Service Agreement contracts is five years from the original installation date. 410A Refrigerant on repairs. * Even if a particular brand or equipment is covered, other circumstances may result in a malfunction not being covered. See page 5 for exclustions to coverage. 4 What Is Not Covered Commercial and industrial equipment, units which contain R-22 refrigerant, window and portable units and generators, fireplaces and grain, pellet or wood heating units, chillers, electronic air cleaners, water heaters, batteries, filters and other items that are intended to be used up periodically, automatic transfer switches, cosmetic or other defects that do not affect the primary function of the covered unit, any item that is not standard equipment provided by the manufacturer of the covered unit and that was not included in the original installation. Costs of parts, shipping, or handling of manufacturer recommended maintenance, premium or overtime labor charges. Labor or other costs associated with repairs or replacements required when the malfunction is caused by: вЂў Improper installation or improper repair of the covered unit or its components, missing components, parts or equipment, the covered unit being oversized or undersized in relation to the square footage of the area being heated and cooled вЂў Repair or replacement of defective items, that have been determined to be defective, or for which a warning has been issued, by the Consumer Product Safety Commission or for which a manufacturer has issued a warning, recall or determination of defect вЂў Obstructed access to the equipment or controls вЂў Illegal repairs or replacements that would violate or which are required to comply with any law, regulation, ordinance, building or zoning code, or decree of a government agency вЂў Repairs or replacements involving hazardous or toxic materials, mold, mildew, bio-organic growth, rot, fungus, or pest damage вЂў Lack of routine or special maintenance according to the manufacturerвЂ™s instructions or recommended by the manufacturer Repairs or replacements when the malfunction is due to: вЂў Misuse, abuse, or mistreatment including removal of parts, damage by people, pests, grass clippings and other materials on the outside of the condensing unit, or pets, or use of improper or contaminated refrigerants, accidents, fire, freezing, water damage, electrical failure or surge, or interruption in or inadequate electrical service, lightning, mud, earthquake, soil movement, storms, or acts of God, corrosion caused by the use of inferior or problematic building materials Secondary incidental and/or consequential loss or damage resulting from the malfunction of any covered item or a service contractorвЂ™s neglect or delay in providing or failing to provide repair and replacement of such an item, including: вЂў Loss of income, utility bills, additional living expenses, personal and/or property damage Any delay in service or failure to provide service beyond American Home ShieldвЂ™s control Any cost covered by a manufacturerвЂ™s or service contractorвЂ™s warranty 5 WHAT TO DO IF YOU NEED HEATING AND AIR CONDITIONING REPAIRS Requesting ESA service from American Home Shield is easy and convenient! If you have a covered issue with your heating or air conditioning system malfunctioning during the contract period, simply: Step 1: Request service by calling AHS at 855 222 0748 any time of the day or night. Step 2: We will contact the original contractor who installed the unit for service or another member of our contractor network who will contact you during normal business hours to schedule an appointment. Step 3: If you chose the Service Fee option when you signed up, pay the low $50 Service Fee to AHS. (if you didnвЂ™t choose the Service Fee option, no Service Fee payment is necessary) Step 4: The contractor will service your heating or air conditioning system for the covered issue. RENEWABLE COVERAGE Renewals are available on the original ESA contract at the discretion of AHS and must be implemented within 60 days before the original expiration date of coverage. Additional Renewal Information: Equipment cannot be covered by an extended service agreement beyond the end of the tenth year from the original installation date. Coverage, price, and terms are subject to change at renewal. If AHS chooses to renew a contract, the homeowner will be notified prior to the expiration of the current contract. 6 MAINTENANCE Homeowners are responsible for operating the covered unit according to the manufacturerвЂ™s instructions and for performing routine maintenance and any special maintenance recommended by the manufacturer, including: Cleaning of the condensate drain, condenser and evaporator coil Replacing air filters Routine or preventative maintenance is the responsibility of the homeowner and is not covered by the Extended Service Agreement. Malfunctions caused by lack of maintenance are not covered under the AHS ESA. Homeowners may be required to provide proof of routine and special maintenance when requesting service under the AHS ESA. Claims for failures caused by a lack of routine maintenance are not covered by American Home Shield Extended Service Agreements. REPAIR OR REPLACEMENT POLICY/ AUTHORIZATION AHS has the sole right to determine whether labor cost are covered. The decision to cover labor cost made by AHS at the time authorization is requested. Under no circumstance should a contractor/ dealer make an offer to repair or replace without approval from AHS. If the unit is replaced, the existing Extended Service Agreement is fullfilled and the customer must purchase a new Extended Service Agreement in order to have coverage on the new piece of equipment. 7 AMERICAN HOME SHIELDВ® New Programs: Our extended service agreements are a new way of doing business with American Home Shield. Participating in our ESA program is different and independent from all other American Home Shield services. Financial Reliability: We have a proven track record of being a financially stable company with over 40 years of experience covering heating and air conditioning systems. Experience: In business since 1971 and with over 1.3 million customers nationwide, we responded to over 1 million heating and air conditioning service requests last year. ServiceMaster: As a business unit of the ServiceMaster Company, one of the worldвЂ™s largest residential and commercial service networks, our mission is to simplify and improve the quality of our customersвЂ™ lives. At American Home Shield we do this by providing flexible home repair and maintenance solutions that help you. Worry less. Live more. 8 FREQUENTLY ASKED QUESTIONS About Heating and Air Conditioning 5-year Labor Extended Service Agreements from American Home Shield As the homeowner, what are my responsibilities under the agreement? You are responsible for performing routine maintenance according to your unitвЂ™s manufacturerвЂ™s instructions, as well as for any special maintenance that is recommended by the manufacturer. You may be required to provide proof of routine and special maintenance when requesting service. Malfunctions caused by lack of maintenance are not covered. In addition to regular maintenance, you are responsible for providing unobstructed access to all covered items. AHS is not responsible for any costs associated with construction, carpentry, or other modifications necessary to access, remove, relocate, or install equipment. Your contractor may charge you an additional fee if any special equipment is necessary to install or remove equipment. including accessories, must be the same brand as the manufacturer of the system. Applications for ESA coverage must be approved by AHS and payment must be received before coverage becomes effective. How do I sign up? The contractor who sold and installed your new heating and air conditioning system can arrange coverage for you. What do the ESA labor costs cover? AHS covers standard labor costs for necessary repairs or replacements to covered unit internal components (unless specifically listed as вЂњNot CoveredвЂќ in the contract), thermostats and humidifiers and dehumidifiers if they are part of the standard equipment provided by the manufacturer of the covered unit and included in the original installation What heating and air conditioning equipment is eligible for coverage? Unless an exclusion applies, most new residential heating and air conditioning equipment with a capacity of five tons or less that is purchased from the manufacturer or an authorized dealer can be covered. The covered equipment must be fully installed and functioning at the single family dwelling contract property address listed on the Contract Agreement page. Most major brands of heating and air conditioning systems are covered if the contract is sold on the equipment within 60 days from the date of installation. All heating and air conditioning equipment, What is not covered by the ESA? See your contract for the complete list of items that are specifically вЂњNot Covered.вЂќ Some of the items on that list include manufacturer recommended maintenance, external parts, such as wiring, drain and refrigerant lines, venting, ducts, exhaust lines, and connectors. The exclusions also include cosmetic defects, maintenance costs, improper installations, malfunctions due to insufficient maintenance, misuse, or any costs covered by manufacturersвЂ™ or service contractorsвЂ™ warranties, among others. Continues next page 9 FREQUENTLY ASKED QUESTIONS What if I sell my home? If you sell your home during the contract period, the Extended Service Agreement may be transferred (free of charge) to the new buyer of the home by contacting AHS at 855 222 0748. How is the $50 Service Fee collected? If you select an agreement with a Service Fee, AHS will collect the low $50 Service Fee prior to service being performed. Once received, the original contractor, or another contractor of AHSвЂ™s choice if that contractor is not available, will be dispatched to service your heating and air conditioning system. Can the contract be cancelled? Yes, the contract can be cancelled at any time by notifying AHS. The refund will be prorated for the unexpired term of the contract less any service cost incurred by AHS and an administrative fee of $50. Is annual maintenance required when submitting claims? Equipment owners are responsible for performing routine maintenance according to manufacturerвЂ™s instructions, as well as for any special maintenance recommended by the manufacturer. Owners may be required to provide proof of routine and special maintenance when requesting service. Malfunctions caused by lack of maintenance are not covered. Does the equipment owner have any other responsibilities? Yes, they are responsible for providing unobstructed access to all covered items. AHS is not responsible for any costs associated with construction, carpentry, or other modifications necessary to access, remove, relocate, or install equipment. Contractors may charge an additional fee if any special equipment is necessary to install or remove equipment. What if I have questions about my ESA? Call the customer support line at 855 222 0748 or email esa.contracts@ahslink.com 24 hours a day, seven days a week. Is my ESA renewable? Yes. ESAs can be renewed annually at AHSвЂ™ discretion after initial 5-year term through AHS. See the вЂњRenewable CoverageвЂќ section for additional details. 10