Sears 2.0 Home Warranty Plan - Program Overview

As of November 1, 2016, Cinch and Sears began offering a new series of Sears Home Warranty (SHW) 2.0 plans with higher price points, deductibles and enhanced coverage and benefits.  The Sears 2.0 plans will be released in 4 stages throughout the month of November(1st, 15th, 22nd, 28th), via 5 different Sears channels.  

 

The Sears Home Warranty (SHW) Value plans (down-sell plans) will be removed from TIMX SCM effective October 31, 2016.  Once Sears has converted all their sales channels to the new plans (apprx.  12/1/16) we will reinstitute the Value plan retention program.

 

 

Pricing Changes

The initial launch of the Sears Home Warranty (SHW) program, there were 2 distinct price points; a higher price point with a paid call benefit, and a lower price point without a paid call benefit.  

 

The new plans will have ONLY one set of price points:  

 

Plan Level	Price Point	Deductible
Appliance-Only	49.99 per month	$75 per claim
Systems- Only	59.99 per month	$100 per claim
Whole Home	69.99 per month	$100 per claim

 

One price point per product, for all channels and promotions.  The initial service fee for the Sears tech has increased from $60 to $80 based on the promotion.

 

Coverage

 

 

Enhanced Coverage

 

The new products include the following enhanced coverages:

·       Smoke detectors (whole home and system plans only)

·       Jetted bathtubs (whole home and system plans only)

·       Laundry – tubs, agitators, and drums (whole home and appliance plans only)

·       Cooking – door latches (whole home and appliance plans only)

 

Enhanced Benefits

 

1.             25% Discount on Non-Covered Repairs- SHW customers are now eligible to receive 25% off any repair during the inactive period of the warranty. If a customer notifies a Cinch agent of a repair need, while the warranty is inactive, warm transfer to Sears Home Warranty Help at 888-826-6975.  They will dispatch a technician using the 25%-off code.  The 25%-off non covered repair discount is unchanged once the warranty goes into effect; Appliance Plan customers get 25% off HVAC and Hot Water Heater repairs, and Systems Plan customers get 25% off Appliance repairs.  Cinch Customer Service should follow normal procedures.

2.    Sears Automotive Benefit – Customers in the new SHW plans will now receive coupons for up to 4 Oil Changes + a FREE Tire Rotation per year for just $9.99 per visit. Customers can go to any Sears Automotive location and provide the Coupon Code found in the membership card of their Welcome Kit.  If the customer does not know the coupon code, the Cinch agent can provide it; it is 42128 for all customers.  Below is an example of the coupon that will be contained within their Sears Home Warranty Welcome Kit.

 

 

 

Sales Channels and Offers

Sears is currently selling the SHW plans in 5 channels.  Each sales channel employs a different offer/promotion tailored to the customer and situation.  Sears will also introduce a new sales strategy when offering the paid call by stating the customer's cost for today's visit up to $500, will be  a flat rate of $129.99/$139.99/$149.99, which will cover the service fee and the 1st month installment for enrolling in the program.

1.    Sears Repair Call Center - (11/1/16, 11/22/16, 11/28/16)

2.    Sears Parts Direct - (11/15/16)

3.    Protection Agreement - (11/28/16)

4.    On-Line - (11/28/16)

a.    searshomewarranty.com

b.    Sears Paid Search

5.    Home Improvement - (11/28/16)

 

All normal policies and procedures apply to the following transactions:

1.     Paid Call Collections-Customers who received a Paid Call/Flat Rate or Free Part benefit when they enrolled must pay back the amount if they choose to cancel before the expiration of their initial 12 month term.  As long as the cell code or plan display name indicates “CXL” or “Cancel Fee”, utilize the current Paid Call procedures.

2.     Refunding/Refund Calculator- Use the refund calculator to determine if there is a refund due. Any claims paid by Cinch should be taken into consideration.   

3.     Adding Second Items and Options- Prices for second items and options are unchanged.  Customers may add options within 60 days of enrollment. Follow existing rules.

4.     Special circumstances to prevent customer from cancelling, the lower price point can be used if the customer stresses that they saw a lower price.

5.     Warm transfer customers to Home Warranty Help at 888-826-6975, if the customer has an issue or did not receive their Paid Call benefit.