The Premier Upgrade Package (PUP) coverage offers additional benefits for non-covered charges associated with a covered system or appliance repair or replacement.
When a customer has a covered failure, there may be services required to complete the repair or replacement that are not normally covered under a home warranty.
Examples of non-covered charges:
PUP can be used twice a year per contract year, for up to $1,000 of non-covered charges each time. Any unused portion of the benefit cannot be applied towards a future claim.
Associates MUST check service history to be sure the PUP is applied correctly.
Examples:
o A camera test for plumbing for diagnosis.
o Equipment, items or causes of failures deemed as not covered
Examples:
o Refrigerant Cap
o Boiler Cap
o Geothermal Unit Cap
Examples:
o The defrost heater in a refrigerator, a covered item, has failed. However, the condensing coil is dirty and must be cleaned before they do the work. The cleaning maintenance is not addressed by PUP.
Examples:
o The water heater is leaking and so is the expansion tank. Since the expansion tank is not addressed by the warranty, PUP will not cover a new expansion tank.
Note: Alternatively, if the water heater is leaking and has no expansion tank and an expansion tank is needed for code, PUP will address adding an expansion tank in order to satisfy the code upgrade requirements.
Click here for a link to the PUP training presentation - launched August, 2020.
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CUSTOMER PROMPT |
AGENT RESPONSE |
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Add-on Optional Services |
So, let me ask you…
IF CUSTOMER SAYS YES TO ANY QUESTIONS ABOVE So, you know, you can also protect your [select optional coverage] for an additional [insert price based on option coverage]. I’d be glad to go ahead and add that now for you, okay? PREMIUM UPGRADE PLAN - $10 per month We also highly recommend our customers take advantage of our Premium Upgrade Plan - it’s an added protection. It pays for items typically not included with home warranties such as disposal of equipment, duct/electrical/plumbing modifications, reclamation of refrigerant, code upgrades, permits, condenser pads and much more. You’ll get up to $1,000 per claim and can do up to 2 claims per year for just $10 extra per month. Okay! IF FLA CUSTOMER – also say: Just for your information, this optional protection provides coverage in accordance with Florida Statute 634.346 which helps maintain the compatibility and operating efficiency requirements of the A/C manufacturer. Okay! IF CUSTOMER SAYS YES: GO TO DATA GATHERING IF NO: Is there any particular reason why? GO TO APPROPRIATE RESPONSE Ok, just so you know you have up to 30 days from effective date to modify or add optional coverage. |
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What is the Premier Upgrade Plan? |
The Premier Upgrade Package (PUP) enhances the base Cinch Home Warranty coverage plan for buyers, offering additional benefits for non-covered charges associated with a systems or appliance repair or replacement. Just like many home warranty companies, our Cinch Home Warranty plans excludes paying for changes or upgrades due to code or regulatory requirements. Cinch covers repairs or replacements due to wear and tear. Let me explain how it works with an example. Let's say you have an approved claim to replace your A/C. Our warranty covers the costs of parts and labor, but there are $700 of non-covered charges associated with the replacement (for duct modifications and permits). Without the Premier Upgrade Package, you would be out of pocket $700 in addition to your deductible. If you have the Premier Upgrade Package, will receive a brand-new A/C and only pay your deductible out of pocket. Keep mind, this option can be used two times per contract year, for up to $1,000 of non-covered charges each time. That’s up to $2,000 worth of coverage for only $120 a year. Would you like to add it to your plan for an additional $10 a month?
IF YES: CONTINUE IF NO: Ok, just so you know you have up to 30 days from effective date to modify or add optional coverage. |
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What is the Florida Statute 634.346? |
Effective January 1st, 2020, Florida Regulations are requiring Home Warranty companies to offer voluntary coverage to consumers to cover the cost of upgrading a unit due to the Florida code requirements. Just like many home warranty companies, our Cinch Home Warranty plans excludes paying for changes or upgrades due to code or regulatory requirements. Cinch covers repairs or replacements due to wear and tear. Let me explain how it works with an example. Let's say you have an approved claim to replace your A/C. Our warranty covers the costs of parts and labor, but there are $700 of non-covered charges associated with the replacement (for duct modifications and permits). Without the Premier Upgrade Package, you would be out of pocket $700 in addition to your deductible. If you have the Premier Upgrade Package, will receive a brand new A/C and only pay your deductible out of pocket. Keep mind, this option can be used two times per contract year, for up to $1,000 of non-covered charges each time. That’s up to $2,000 worth of coverage for only $120 a year. Would you like to add it to your plan for an additional $10 a month?
IF YES: CONTINUE IF NO: Ok, just so you know you have up to 30 days from effective date to modify or add optional coverage. |
The Premier Upgrade Package (PUP) enhances the base HMS Home Warranty coverage plan for buyers, offering additional benefits for non-covered charges associated with a systems or appliance repair or replacement.
When a customer has a covered failure, there will be items required to complete the repair or replacement that are not customarily covered under a home warranty. The customer would be responsible for paying the Service Partner for these items.
Examples of industry-wide non-covered charges and associated costs:
When advising customers about the value of adding PUP to their HMS Home Warranty, it is critical that we present a concise, targeted overview of its features and benefits. The standard scripting below should be used when presenting PUP.
'I would like to make sure you know about our Premier Upgrade Package. This $120 option provides coverage for charges which are typically not covered under any home warranty – items, for example, like the disposal of old equipment, duct, electrical and/or plumbing modifications, code upgrades and permit fees.
Most of my customers share their warranty experience with me when we talk about renewal, and by far, those who have the Premier Upgrade Package have been very satisfied with the savings it has provided.
Let me explain how it works with an example. Let's say you have an approved claim to replace your A/C. Our warranty covers the costs of parts and labor, but there are $700 of non-covered charges associated with the replacement (for duct modifications and permits). Without the Premier Upgrade Package, you would be out of pocket <use the correct calculation below>:
$825 = $700 non-covered charges plus your $125 deductible.
$800 = $700 non-covered charges plus your $100 deductible.
$750 = $700 non-covered charges plus your $50 deductible.
If you have the Premier Upgrade Package, will receive a brand new A/C and only pay your <$125/$100/$50> deductible out of pocket.
The option can be used two times per contract year, for up to $1,000 of non-covered charges each time. That’s up to $2,000 worth of coverage for only $120..
Let's include the Premier Upgrade Package in your coverage today.”