Reading a contract

Each plan has its own contract, and terms differ between plans and between states. Ask for the contract for the exact plan you are considering and read these parts first.

Sections to find

• Who is who. The seller, the administrator, and any company that backs payment of claims.
• What is covered. A list of covered parts, or an exclusion list, or both.
• Waiting period and start date. When you can first file a claim.
• Service fee or deductible. What you pay each visit or claim.
• Limits. Per item, per claim and across the contract term.
• Claim process. Who to call, what approval is needed first and how repairs are paid.
• Your duties. Maintenance and records.
• Cancellation and refund. How to cancel, any fees and how a refund is calculated.
• Transfer. Whether the contract moves to a new owner if you sell.

If you are unsure about a term

Ask for the wording in writing before you decide. If something in the contract differs from what you were told, the contract is what applies.

Coverage depends on the plan you choose. The covered list, exclusions, limits and service fee in your contract decide what is paid.