Glossary of Terms

Commonly Used Words and Phrases

Terminology You Should Know

Home Service Contract — A home service contract is an agreement that covers the cost of repairs and replacement for your home systems and appliances when they break down over time.

Breakdown — A covered item becomes inoperable and unable to perform the function for which it was designed.

Administrator — The administrator handles the claims process directly with your service facility and authorizes any covered repairs under the home service contract’s terms and conditions.

Service Technician — The authorized representative assigned to provide service or repairs. 

Labor Rate — The labor rate is the amount charged by the repair facility for work that is necessary to repair a breakdown.

Pre-Existing Condition — Any failure occurring prior to the effective date of the home service contract.

Service Call Fee — The fee that is due from you for each service call and that is paid to the authorized service professional at the time of service.

Optional Coverage – Options that may be added to the coverage plan only if selected at the time of purchase.

Exclusions — Specific items or conditions not listed for coverage.

Domestic Grade — Items that were manufactured solely for installation and use in a residential property.