TERMS AND CONDITIONS

A. COVERAGE

1. During the coverage period, NHP will arrange for a qualified service contractor to repair or replace the systems and appliances mentioned as covered in accordance with the terms and conditions of this contract so long as they:

A. Are located in the confines of the main foundation of the home or garage (with the exception of air conditioner, well pump, and pool and/or spa equipment, if selected);

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 throughout the term of this contract for proper diagnosis.

2. This contract covers single-family homes (including manufactured housing) under 5,000 square feet. Coverage is for owned or rented residential property, not commercial property or residences used as businesses, including, but not limited to, day care centers, fraternity/sorority houses, and nursing/care homes.

3. This contract describes the basic coverage and options available. Coverage includes only the items selected as covered and excludes all others. Coverage is subject to limitations and conditions specified in this contract. Please read your contract carefully.

B. COVERAGE PERIOD/CONTRACT TERM

Coverage starts 30 days after acceptance of application by NHP and receipt of applicable contract fees and continues for 365 days from that date. Your coverage may begin before 30 days if NHP receives proof of prior coverage through another carrier within 15 days of the order date.

C. CUSTOMER SERVICE - TO REQUEST SERVICE CALL: 1-800-608-6097.

1. You must notify NHP for work to be performed under this contract as soon as the problem is discovered. NHP will accept service calls 24 hours a day, 7 days a week at 800-608-6097. Notice of any malfunction must be given to NHP prior to the expiration of this contract.

2. Upon request for service, NHP will contact an authorized service contractor within two (2) days during normal business hours and four (4) days on weekends and holidays. The authorized service contractor will promptly contact you to schedule a mutually convenient appointment during normal business hours. NHP will determine what repairs constitute an emergency and will make reasonable efforts to expedite emergency service. If you should request NHP to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime.

3. NHP has the right to select the service contractor, which may be a service company affiliated with NHP, to perform the service. NHP will not reimburse for services performed without its prior approval.

4. You will pay $60.00 for each trade service call, or the actual cost, whichever is less. Additional charges may apply to certain repairs and replacements. The trade service call fee is for each call dispatched and scheduled to be run (except as noted in Section C.5) including, but not limited to, trade service calls wherein coverage is (in whole or in part) granted, excluded, limited or denied. Please note: the trade service call fee applies in the event you fail to be present at scheduled time of the trade service call or in the event you cancel a call at the time the contractor is in route to your home or the contractor has already arrived at your home. The trade service call fee will be due and payable to the NHP-authorized service contractor (or to NHP) at the time of the scheduled trade service call. NHP cannot respond to a new request for service when any previous trade service call fee is outstanding. Failure to pay the trade service call fee will result in suspension of coverage until such time as the proper fee is paid. At that time, coverage will be reinstated; however, the contract term will not be extended.

5. If service work performed under this contract should fail, then NHP 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.

D. COVERAGE - INCLUDES ITEMS D.1 - D.17 (COVERAGE DEPENDANT ON PLAN SELECTED)

Certain limitations of liability apply to covered systems and appliances (See Section E-F).

1. PLUMBING SYSTEM

COVERED: Leaks and breaks of water, drain, gas, waste or vent lines, except if caused by freezing or roots. Toilet tanks, bowls and related mechanisms (builder's standard is used when replacement is necessary), toilet wax ring seals, valves for shower, tub, and diverter, angle stops, risers and gate valves. Permanently installed sump pumps (ground water only). Built-in bathtub whirlpool motor and pump assemblies.

NOT COVERED: Collapse of or damage to water, drain, gas, waste or vent lines caused by freezing or roots - Faucets and fixtures - Bathtubs and showers - Shower enclosures and base pans - Sinks - Toilet lids and seats - Caulking or grouting - Septic tanks - Water softeners - Pressure regulators - Inadequate or excessive water pressure - Flow restrictions in fresh water lines caused by rust, corrosion, or chemical deposits - Sewage ejector pumps - Holding or storage tanks - Saunas or steam rooms - Hose bibs - Whirlpool jets. NOTE: NHP will provide access to plumbing systems through unobstructed walls, ceilings or floors, only, and will return the access opening to rough finish condition. With respect to concrete covered, embedded, encased, or otherwise inaccessible plumbing systems, NHP will pay no more than $500 per contract term for access, diagnosis and repair or replacement. NHP's authorized service contractor will close the access opening and return it to rough finish condition, subject to the $500 limit indicated. NHP shall not be responsible for payment of the cost to remove and replace any built-in appliances, cabinets, floor coverings or other obstructions impeding access to walls, ceilings, or floors.

2. STOPPAGES (accessible ground level clean out required)

COVERED: Cleaning of stoppages in drain, vent and sewer lines up to 100 feet from access point, except if caused by roots. Mainline stoppages are only cleared when there is an accessible ground level clean out.

NOT COVERED: Stoppages caused by collapsed, damaged or broken drain, vent or sewer lines outside the confines of the main foundation of the home - Stoppages due to roots or foreign objects - If the lines are broken or infiltrated by roots or are otherwise stopped by roots, even if the break, infiltration or stoppage is within 100 feet from the access point, it is not covered - Access to drain or sewer lines from the vent or the removal of the water closet - Costs to locate, access, or install a ground level clean out - Septic tanks.

3. WATER HEATER

COVERED: All components and parts, including circulating pumps, except:

NOT COVERED: Solar water heaters - Solar components - Main, Holding or storage tanks - Noise - Vents and flues - Fuel storage tank and energy conservation unit - Thermal expansion tanks.

4. HEATING SYSTEM OR BUILT-IN WALL UNIT (if main source of heat to home)

NOTE: Coverage available on heating and/or cooling systems not exceeding a five (5) ton capacity.

COVERED: All components and parts necessary for the operation of the system, except:

NOT COVERED: All components and parts relating to geothermal, water source heat pumps including: outside or underground piping, components for geothermal and/or water source heat pumps, redrilling of wells for geothermal and/or water source heat pumps, and well pump and well pump components for geothermal and/or water source heat pumps - Baseboard casings - Fuel storage tanks - Portable units - Solar heating systems - Fireplaces and key valves – Filters - Registers - Grills - Clocks - Timers - Heat lamps - Humidifiers - Flues and vents – Improperly sized heating systems - Chimneys – Pellet stoves - Cable heat (in ceiling) - Wood stoves (even if only source of heating). NOTE: NHP will pay no more than $1,500 per covered item per contract term for access, diagnosis and repair or replacement of any glycol, hot water, or steam circulating heating systems.

5. DUCTWORK

COVERED: Ducts from heating and/or cooling unit to point of attachment at registers or grills and flex ductwork.

NOT COVERED: Registers - Grills – Insulation - Asbestos-insulated ductwork - Dampers - Improperly sized ductwork. NOTE: NHP will provide access to ductwork through unobstructed walls, ceilings or floors, only, and will return the access opening to rough finish condition. With respect to concrete covered, embedded, encased, or otherwise inaccessible ductwork, NHP will pay no more than $500 per contract term for access, diagnosis and repair or replacement. NHP's authorized service contractor will close the access opening and return to a rough finish condition, subject to the $500 limit indicated. NHP shall not be responsible for payment of the cost to remove and replace any built-in appliances, cabinets, floor coverings or other obstructions impeding access to walls, ceilings, or floors.

6. ELECTRICAL SYSTEM

COVERED: All components and parts, including built-in exhaust fans, except:

NOT COVERED: Fixtures - Doorbells - Alarms - Intercoms - Central vacuum systems - Inadequate wiring capacity - Power failure or surge - Direct current (D.C.) wiring or components - Garage door openers.

7. CEILING FANS

COVERED: All components and parts.

8. DISHWASHER

COVERED: All components and parts, except:

NOT COVERED: Racks - Baskets - Rollers.

9. GARBAGE DISPOSAL

COVERED: All components and parts, including entire unit.

10. BUILT-IN MICROWAVE OVEN

COVERED: All components and parts, except:

NOT COVERED: Interior linings - Door glass - Clocks - Shelves - Portable or counter top units - Meat probe assemblies - Rotisseries.

11. RANGE/OVEN/COOKTOP (Gas or Electric)

COVERED: All components and parts, except:

NOT COVERED: Clocks (unless they affect the function of the oven) – Meat probe assemblies - Rotisseries -Racks - Handles - Knobs - Sensi-heat burners will only be replaced with standard burners.

12. AIR CONDITIONING/COOLER

NOTE: Coverage available on heating and/or cooling systems not exceeding a five (5) ton capacity.

COVERED: Ducted electric central air conditioning, ducted electric wall air conditioning and water evaporative coolers. All components and parts, except:

NOT COVERED: Gas air conditioning systems Condenser casings – Registers and grills - Filters -Electronic air cleaners - Window units - Non-ducted wall units - Water towers - Humidifiers - Roof jacks or stands - Evaporative cooler pads - Flues - Vents – Improperly sized air conditioning unit - Chillers and chiller components.

13. FREON RECAPTURE: Coverage is for Air Conditioning/Cooler only.

14. ONE KITCHEN REFRIGERATOR (must be located in the Kitchen)

COVERED: All components and parts, except:

NOT COVERED: Racks - Shelves - Drawers – Ice makers, ice crushers, beverage dispensers and their respective equipment - Interior thermal shells – Food spoilage - Freezers which are not an integral part of the refrigerator.

15. GARAGE DOOR OPENER

COVERED: Wiring, motor, switches, receiver unit, track assembly.

NOT COVERED: Doors - Hinges - Springs – Remote transmitters.

16. CLOTHES WASHER

COVERED: All components and parts, except:

NOT COVERED: Plastic mini-tubs - Soap dispensers - Filter screens - Knobs and dials - Damage to clothing.

17. CLOTHES DRYER

COVERED: All components and parts, except:

NOT COVERED: Venting - Lint screens - Knobs and dials - Damage to clothing.

E. OPTIONAL COVERAGES – INCLUDES ITEMS E.1 – E.7 (upon additional payment of contract fee) NOTE: Homeowner may purchase any optional coverage for up to 30 days after commencement of coverage. However, coverage shall not commence until receipt of payment by NHP and such coverage shall expire upon expiration of coverage period in Section B. Certain limitations of liability apply to covered systems and appliances (See Sections F).

1. POOL AND/OR SPA EQUIPMENT (excludes portable or above ground spas)

COVERED: Both pool and built-in spa equipment (exterior hot tub and whirlpool) are covered if they utilize common equipment. If they do not utilize common equipment, then only one or the other is covered unless an additional fee is paid. Coverage applies to above ground, accessible working components and parts of the heating, pumping and filtration system as follows: Heater – Pump - Motor - Filter - Filter timer - Gaskets - Blower - Timer - Valves, limited to back flush, actuator, check, and 2 and 3-way valves - Relays and switches - Pool sweep motor and pump - Above ground plumbing pipes and wiring.

NOT COVERED: Lights - Liners - Structural defects - Solar equipment - Jets - Ornamental fountains, waterfalls and their pumping systems - Pool cover and related equipment - Fill line and fill valve - Built-in or detachable cleaning equipment such as, but not limited to, pool sweeps, pop up heads – Turbo valves, skimmers, chlorinators, and ionizers - Fuel storage tanks – Disposable filtration mediums - Heat pump - Portable or above ground spas.

2. WELL PUMP

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

NOT COVERED: Well casings - Pressure tanks - Piping or electrical lines leading to or connecting pressure tank and main dwelling including wiring from control box to the pump - Holding or storage tanks - Redrilling of wells - Booster pumps - Well pump and well pump components for geothermal and/or water source heat pumps.

3. SUMP PUMP

COVERED: Permanently installed sump pump for ground water, within the foundation of the home or attached garage.

NOT COVERED: Portable pumps, sewer ejector pumps.

4. CENTRAL VACUUM

COVERED: All parts and components that affect the operation of the unit.

NOT COVERED: Hoses, pipes, clogged pipes, accessories.

5. LIMITED ROOF LEAK REPAIR (SINGLE FAMILY

HOMES ONLY)

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

NOT COVERED: Patios, porches, cracked and/or missing material, foam roofs, tar and gravel or metal roof, flat or built-up roof, structural leaks adjacent to or caused by appendages of any kind, gutters, downspouts, flashing skylights, decks, patio covers, solar equipment, roof jacks, antennae, chimneys, preventative maintenance.

NOTE: If roof must be partially or completely replaced to effect repair, this coverage does not apply.

6. SECOND REFRIGERATOR

COVERED: All parts and components that affect the operation of the unit.

NOT COVERED: Ice-makers, crushers, dispensers and related equipment, internal shell, racks, shelves, food spoilage, independent freezers, Freon, disposal and recapture of Freon.

7. STAND ALONE FREEZER

COVERED: All parts and components that affect the operation of the unit.

NOT COVERED: Ice-makers, crushers, dispensers and related equipment, internal shell, racks, shelves, food spoilage, independent freezers, Freon, disposal and recapture of Freon.

8. SEPTIC TANK PUMPING

COVERED: In the event a drain stoppage is due to septic tank backup, NHP will pump one septic tank, one time only.

NOT COVERED: The cost of finding or gaining access to the septic tank; chemical treatments; leach lines; septic system pumps; cesspool. limited to a total of $200 maximum

9.SEPTIC SYSTEM

COVERED: Aerobic pump, sewage ejector pump, jet pump, septic tank and line from house.

NOT COVERED: Tile fields and leach beds; leach lines; field lines; lateral lines; insufficient capacity; clean out; pumping. Cost to diagnose, repair and/or replace the system, including pumps, septic tank and/or line is limited to a total of $400 maximum.

F. LIMITATIONS OF LIABILITY

1. NHP is not responsible for providing or closing access to covered items, except as noted in Sections D and E.

2. You may be charged an additional fee by the service contractor to dispose of an old appliance, system or component, including, but not limited to the following items: condensing units, evaporator coils, compressors, capacitors, refrigerators, freezers, water heaters, and any system or appliance which contains dangerous or hazardous materials.

3. NHP is not responsible for restoration of any wall coverings, floor coverings, cabinets, counter tops, tiling, paint, or the like, nor for the repair of any cosmetic defects.

4. Electronic, computerized or energy management systems or devices, or lighting and appliance management systems are not covered.

5. NHP is not liable for consequential or secondary damages nor for failure to provide timely service due to conditions beyond its control, including but not limited to, delays in obtaining parts or equipment and labor difficulties.

6. NHP is not liable for repair of conditions caused by chemical or sedimentary build-up, misuse or abuse, failure to clean or maintain, 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, or failure due to excessive or inadequate water pressure.

7. NHP has the sole right to determine whether a covered system or appliance will be repaired or replaced. NHP is responsible for installing replacement equipment of similar features, capacity, and efficiency, but not for matching dimensions, brand or color. NHP is not responsible for upgrades, components, parts, or equipment required due to the incompatibility of the existing equipment with the replacement system or appliance or component or part thereof or with new type of chemical or material utilized to run the replacement equipment including, but not limited to, differences in technology, refrigerant requirements, or efficiency as mandated by federal, state, or local governments. Nor is NHP responsible for the cost of construction, carpentry, or other modifications made necessary by the existing equipment or installing different equipment.

8. NHP is not responsible for repairs related to inadequacy, lack of capacity, improper installation, previous repair or design, manufacturer’s defect, and any modification to the system or appliance. NHP does not perform routine maintenance. You are responsible for providing maintenance and cleaning on covered items as specified by the manufacturer to ensure continued coverage on such items. NHP reserves the right to request maintenance records. For example: heating and air conditioning systems require periodic cleaning and/or replacement of filters and cleaning of evaporator and condenser coils. Water heaters require periodic flushing.

9. NHP reserves the right to obtain a second opinion at its expense.

10. NHP is not responsible for repair or replacement of systems and appliances classified by the manufacturer as commercial.

11. NHP is not responsible for any repair, replacement, installation, or modification of any covered system or appliance arising from a manufacturer’s recall of said covered items, nor any covered item while still under an existing manufacturer’s, distributor’s, or in-home warranty.

12. NHP reserves the right to provide cash back in lieu of repair or replacement in the amount of NHP's actual cost (which at times may be less than retail) to repair or replace such item subject to the terms of the contract.

13. NHP reserves the right to rebuild a part or component, or replace with a rebuilt part or component.

14. NHP is not responsible for the repair or replacement of any system or appliance or component or part thereof that has been previously, or is subsequently, determined to be defective by the Consumer Product Safety Commission or the manufacturer and for which either has issued, or issues, a warning or recall, or which is otherwise necessitated due to failure caused by the manufacturer’s improper design, use of improper materials, formula, manufacturing process or other manufacturing defect.

15. NHP is not responsible for diagnosis, repair or remediation of mold, mildew, rot or fungus, or any damages resulting from or related to mold, mildew, rot or fungus, which is associated in any way with the malfunction of or the repair or replacement of covered systems and appliances.

16. NHP will pay no more than $1,500 per contract item for access, diagnosis and repair or replacement.

G. BUILDING AND ZONING CODE REQUIREMENTS OR VIOLATIONS

NHP is not responsible for any upgrades, work or costs required to comply with any federal, state, or local laws, regulations or ordinances or utility regulations, or to meet current building or zoning code requirements, or to correct for code violations. NHP is not responsible for service when permits cannot be obtained, nor will it pay any costs relating to permits. NHP will not contract to perform service nor pay costs involving hazardous or toxic materials including, but not limited to, asbestos, mold, lead paint, and sanitation of sewage spills, nor will it pay costs related to recapture or disposal of refrigerants, contaminants, hazardous, or toxic materials. NHP will only pay costs related to Freon recapture if it is part of your coverage plan.

H. MULTIPLE UNITS AND INVESTMENT PROPERTY

1. If this contract is for duplex, triplex, or fourplex dwelling, then every unit within such dwelling must be protected by an NHP contract for protection to apply to common systems. Should any unit within such dwelling not be protected by an NHP contract, then there is no protection for common systems.

2. If this contract is for a dwelling within a multiple unit of five (5) dwelling units or more, then only items contained within the confines of each individual unit are protected. Common systems and appliances are excluded.

3. Except as otherwise provided in this section, common systems and appliances are not protected.

I. TRANSFER OF CONTRACT AND RENEWALS

1. If the covered property changes ownership during the contract term, please call 1-800-608-6045 for further information to transfer coverage to the new owner.

2. This contract may be renewed at the option of NHP and where permitted by state law. In that event, you will be notified of the prevailing rates and terms for renewal.

3. If you select the monthly payment option and NHP elects to renew your contract, NHP will notify you of applicable rate and terms of renewal during the tenth month of your contract and you will automatically be renewed for an annual coverage period unless you notify NHP in writing 30 days prior to the expiration of the contract. Your first payment for the next contract will be construed as authorization for another 12 month contract.

J. CANCELLATION

This contract may be cancelled by the contract holder within 3 days from the order date of this contract. In such cases, the provider of funds shall be entitled to a full refund of the paid contract fee less a $50 administrative fee. After the 3rd day, this contract shall be non-cancelable by the contract holder, unless otherwise agreed by NHP. This contract shall be non-cancelable by NHP, except for the following reasons:
1) nonpayment of contract fees; or,
2) fraud or misrepresentation of facts material to the issuance of this contract; or,
3) upon mutual agreement of NHP and the contract holder. If NHP cancels or agrees to allow the contract holder to cancel after the 30th day, the provider of funds shall be entitled to a pro rata refund of the paid contract fee for the unexpired term, less an administrative fee and any service costs incurred by NHP.

K. SUBMISSION TO ARBITRATION

Any controversy or claim arising out of or relating to this Agreement (including whether a particular dispute is arbitrable hereunder) shall be resolved by submission to binding arbitration with the American Arbitration Association in the state of New York, County of New York. 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.

L.This is a maintenance agreement for repair, replacement, or partial replacement of the products listed that are deemed manufactured or sold by the manufacturer. This is not a contract of insurance, residential service, warranty, extended warranty, or implied warranty.

This contract may only be cancelled pursuant to the terms as provided herein. If cancelled, NHP shall have no further obligation, except as specified under Items 1 and 2 as follows: 1) The contract may be cancelled by contract holder within the first 3 days of the order date for a full refund of the paid contract fees less a $50 administrative fee, if and only if, no service has been provided under the contract. If so cancelled after 3 days by the contract holder, contract holder shall be required to pay a $200 cancellation fee.