HW-10 Home Protection Policy (Years 1 & 2)

GENERAL PROVISIONS

1. If a provision of this ten year home protection policy is deemed by a court of competent jurisdiction to be unenforceable, that decision will not in any way affect the enforceability of the remaining provisions.
2. Use of the singular in this agreement shall include the plural and use of the plural shall include the singular. Additionally, use of one gender shall include all other genders.
3. During the first two years of this policy, HW10 will meet its policy obligations subject to a one time $250.00 deductible. During years three through ten of this policy, HW10 will meet its policy obligations subject to a one time $250.00 deductible per claim. No deductible shall be charged for the reoccurrence of a previously corrected defect. An additional provision, relating to deductibles where a condominium is involved, is set forth below in the section setting forth the coverage for units in a condominium.
4. If a claim is made against HW-10 by an insured for a loss that is covered by this policy for which the Homeowner has other insurance or warranty coverage, then HW-10 will pay only the amount of the covered claim that is in excess of such other coverage. In the event that HW-10 has paid a claim before or after such other coverage is made known to HW-10, then HW-10 shall have the right, in the insured's place, to seek reimbursement from such other coverage. If the recovery by HW-10 includes the amount of the deductible paid by the insured, that sum will be reimbursed to the insured.
5. Wherever it is stated that HW10 will "correct or repair, replace or pay the reasonable cost to correct," the decision to repair, replace or pay shall be in the sole discretion of HW10.

See Exclusions pertaining to the HW10 Home Protection Policy.

SPECIAL PROVISIONS FOR CONDOMINIUMS

1. INCEPTION AND TERMINATION OF COVERAGE RELATING TO COMMON ELEMENTS
   Coverage applicable to Major Structural Defects in Common Elements shall continue from the termination of the Second Year Coverage for an additional eight (8) years, and shall then terminate.
   
   
2. CLAIMS ON COMMON ELEMENTS
   Where a Common Element defect affects more than one home in the condominium structure, any portion of a claim involving Common Elements may only be made by a representative designated by the condominium association to file such claims, except that prior to the Homeowners assuming control of the condominium association, such claims may be filed and pursued over the signature of a majority of the Homeowners. Where the effect of the Common Element defect is limited to a single Home, the Homeowner of the affected Home may file a Common Element claim unless such action by an individual Homeowner is prohibited in the condominium documents.
   
   
3. LIMITS OF LIABILITY
   1. For claims involving Common Elements, HW10 shall only be liable for that amount which exceeds the lesser of (i) $250.00 times the number of homes affected by the Common Element defect, or (ii) $5,000.00. Such coverage is also subject to all of the terms, conditions and exclusions herein set forth. In particular, see Exclusions.
   2. Home-is a single family structure or a single family living unit within a multi-unit residential structure in which individual units are sold. See General Provisions above.
   3. If HW10 chooses to pay the Homeowner or the Association instead of performing the repair or replacement work, then HW10 will pay the reasonable cost of repair or replacement above $250.00 if the defect affects an individual Home or above the sum determined in accordance with paragraph C.1., above, if the defect affects Common Elements.
   
   
4. PRO RATA LIABILITY
   In any claim involving Common elements, HW10 shall not be liable in excess of the coverage (purchase price) applicable to the individual condominium unit, as that amount is stated, in policy, less all amounts previously paid pursuant to the terms of the policy. HW10 also shall not be liable for a greater proportion of any such loss than the amount of interest in such Common Elements held by the individual Homeowners covered by HW10 policies at the time of the loss bears to the total interest in Common Elements of all Condominium Unit Owners, whether or not all such Units are completed or sold at the time of loss.
   
   
5. INDIVIDUAL UNITS
   Units in a condominium are covered in the same manner and to the same extent, and subject to all of the terms, conditions and exclusions of the policy and certificate of insurance, as other homes.
   
   

See Approved Construction Standards for specified warranty items.

FIRST YEAR COVERAGE

During the fist year of this ten (10) year home protection policy, which begins on the policy's commencement date, HW10, in its sole discretion, is responsible for repairing, replacing, or paying the Homeowner the reasonable actual cost to correct any defect in (1) workmanship and materials, (2) equipment, fixtures and appliances, (3) piping, wiring, heating, cooling, ventilating, mechanical and electrical systems. Additionally, HW10, in its sole discretion, will repair, replace or pay the actual cost to correct any major structural defect. Structural Defect is defined as "Load-bearing components," which are defined as follows: beams; columns; footing and foundation systems; floor systems; girders; lintels; roof framing systems; roof sheathing; and load-bearing wall and partitions. For the purpose of this policy, "equipment, fixtures and appliances" along with their controls, fittings, attachments, and appurtenances shall include, but not be limited to air conditioning equipment, ventilating fans, air handling equipment, garbage disposals, compactor, automatic door openers, refrigerators, stoves, pumps, water heaters, air purifiers, humidifiers, furnace, boilers, oil tanks, dryers, washer, sinks, bath tubs, lighting fixtures, circuit breakers and toilets. Unless voided by Homeowner negligence, improper maintenance or service, the HW10 policy covers all "equipment, fixtures, and appliances" along with their controls, fittings, attachments, and appurtenances for one full year regardless of individual manufacturer's warranties. Claims for first year coverage must be received by HW10 within the first year after the commencement of first year coverage.

It is important to note that if a major structural defect occurs in the first year of HW10 coverage, all repairs necessary to bring the home into compliance with HW10's Construction Standards will be made.

SECOND YEAR COVERAGE

During the second year of the home protection policy, HW10, in its sole discretion, will repair, replace or pay the reasonable and actual cost to correct any defect of the heating, cooling, ventilating, electrical and mechanical systems of the home, exclusive of equipment, fixtures and appliances. Additionally, HW10, in its sole discretion, will repair, replace or pay the reasonable actual cost to correct any major structural defects in the home. "Load-bearing components" for the purpose of defining major structural defects are defined as follows: beams; columns; footing and foundation systems; floor systems; girders; lintels; roof framing systems; roof sheathing; and load-bearing wall and partitions. Claims for second year coverage must be received by HW10 within the year after the commencement of second year coverage.

For the purpose of this policy, the term "systems," exclusive of equipment, fixtures and appliances, shall refer to the following components: (1) heating, cooling, ventilating, and mechanical systems-all registers, convectors, radiation elements, ductwork, as well as steam, water and refrigeration lines, (2) electrical system-switches outlet, wiring, electrical boxes and connectors to their juncture with the utility connections, and (3) plumbing system-gas, sewer and water service piping and their extensions to the juncture with public utility or on-site well or sewage disposal system connection; gas and water supply lines and their fittings; waste and vent pipes and their fittings; septic tanks and their drains fields; and the proper installation of ton-site well systems.

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