TERMS AND CONDITIONS
Warranty Coverage: Coverage begins when a structural inspection has been completed by an
appointed Structural Inspector, payment is received, and AFW accepts inspection report. Warranted
foundations must be in place and in good and safe condition at start of coverage. Any work performed
prior to warranty date will not be covered by this policy unless work has been performed by an
approved AFW contractor. AFW contractors must be in good standing with the BBB of their region.
Known or unknown defects or defects found at the time of the inspection report are excluded from
coverage until proof of complete structural repair has been made by an AFW approved Structural/
Foundation Repair Company. Areas previously repaired by a Structural/ Foundation Repair Company
will not be warranted. Only below grade footings and foundation systems will be covered under
service contract. AFW is not liable to perform routine maintenance on warranted foundations. Initial
term of warranty is as selected from the date of purchase with approved inspection at no cost to policy
holder. Policies not renewed within 30 days of expiration are subject to new rates & terms.
A Major Structural Defect (“MSD”), is defined as: Actual physical damage to one (or more) of the
following designated load bearing elements of the Home, caused by failure of such load bearing
elements, which affects(s) their load bearing function(s) to the extent that the Home becomes unsafe,
unsanitary or otherwise inhabitable. This definition is identical as defined in the regulation of the
Department of Housing and Urban Development in effect at the time of this Warranty. Structural
repairs will be performed by an AFW appointed Licensed Structural/Foundation Repair Contractor.
The following are the designated load bearing elements of the Home that are covered by this warranty
and may have Major Structural Defect potential:
FOUNDATION SYSTEM AND FOOTINGS BELOW GRADE SUPPORTING
1. Load bearing beams and girders
2. Lintels (other than those supporting veneers)
3. Floor framing systems (joists and trusses)
4. Load bearing walls
5. Load bearing columns
The following are examples of, but not limited to, non-load bearing elements of the Home and DO
NOT have Major Structural Defect potential and therefore are not covered:
a. Non-load bearing partitions and walls
b. Wall tile or paper, etc.
c. Plaster, laths or drywall
d. Flooring and sub-flooring materials
e. Brick, stucco, stone or veneer
f. Any type of exterior siding
g. Roof shingles, tiles, sheathing and tar paper
h. Heating, cooling, ventilating, plumbing, electrical and mechanical systems
i. Appliances, fixtures or items of equipment
j. Doors, trim, cabinets, hardware, insulation, paint and stains
k. Basement and other interior floating, ground supported concrete slabs
Service: When structural repairs are needed, you must telephone AFW directly at 479-751-0556 or
479-756-1900. AFW accepts requests for structural repair inspections 24 hours a day or online at:
Structural Inspectors and Technicians are chosen by AFW, in its sole and absolute discretion. AFW is
not responsible to pay for work performed by a Structural Inspector or Technician unless AFW has
given written approval of the work to be performed prior to its commencement. Warranty will be null
and void if work is completed without the approval of AFW.
Service Guarantee: A warranty representative will respond the same business day during normal work
hours of your placed request to schedule an appointment. Homeowners or their tenants are required to
be available for contact, service and to establish necessary appointments.
Limitations: Weekends and holidays (weekends are holidays begin at the 4 P.M. the previous day).
Any requests for repairs must be made prior to the expiration of this contract.
EXCLUSIONS AND LIMITATIONS OF LIABILITY
1. AFW has the sole right to select the technician to perform structural inspections and repairs;
is not liable for service performed without its approval and will not reimburse the warranty
holder for unauthorized repairs.
2. AFW has the sole right to determine whether to correct and indication of settlement.
3. AFW will not upgrade or pay for additional costs or expenses that may be required to
complete repairs due to, but not limited to, building or zoning code requirements or violations
and connection or connection of public utilities. This includes city, county state, federal and
utility regulations and upgrades required by law and cost of permits, if required by city
ordinances, at the time of structural repair.
4. Any loss, damage, deficiency, cost or expense which is caused, in whole or in part, by any
peril or occurrence which is covered by homeowners insurance, other insurance or for which
compensation is provided by state legislation or public funds.
5. If homeowners or tenants, or other service technician alters, installs, repairs or modifies the
designated load bearing elements of the home covered by this contract or damages it in course
of any remodeling or repair or misuse, AFW is no longer obligated to provide coverage with
regard to that designated element. AFW is not responsible for the replacement of concrete,
brick, siding, veneer, sheetrock, trim, texture, paint, wallpaper, tile wood, flooring, carpet or
the like which may be damaged as a result of AFW’s attempts to stabilize structural defects
covered by this contract. AFW is not responsible for the costs of finding, gaining or closing
access to covered items, or for additional charges to remove or install related or non-related
equipment in order to make a covered repair.
6. Homeowner’s or their tenants’ only remedy for damages from liability claim against AFW,
regardless of the form of action, shall not exceed the reasonable market for repair of item in
dispute, and shall not include consequential, special, punitive or other damages.
7. Changes to grading or drainage surrounding the Home. This includes, but is not limited to:
soil erosion or storm water runoff caused by failure of you to maintain the grades at time of
start of coverage, changes in the grading caused by erosion or changes in the level of the
underground water table, drainage structures, devices or swales, stabilized soil, sodded,
seeded or landscaped damages.
8. Swimming pools, recreational facilities, garage slabs, driveways, patios or porches and stoops
which are not load bearing and structurally attached to integral component of the Home;
decks and balconies not bolded to or cantilevered from the main structure of the Home;
boundary and or retaining walls, bulkheads, fences, landscaping, sod, seeding, shrubs, trees
and plantings; subsurface drainage systems (other than footing drains), lawn sprinkler
systems, irrigation systems, off-site improvements including streets, sidewalks, adjacent
property and the like; or any other improvements not part of the Home itself. Changes,
modifications, remodeling, additions or improvements made to the Home after the Effective
Date of Closing. Detached garages, carports or outbuildings.
9. Acts of God or nature, fire, explosions, riot, civil commotion, terrorism, vandalism, malicious
mischief, blasting, smoke, water damage, steam or water escape, windstorm, hail lightning,
ice, snow, falling trees or other objects, hurricane, tornado, aircraft, vehicles, flood, mud or
mud slides, sinkholes, mine subsidence, faults, fissures, crevices, earthquake, land shock
waves or tremors occurring before, during or after volcanic eruption, or by any other external
cause, whether sudden or gradual; damage resulting directly or indirectly from: flood, surface
water, waves, tidal water, overflow of a body of water, (whether wind driven or not), water
which backs up from sewers or drains, water below the surface of the ground (including water
which exerts hydrostatic pressure on or leaks through a building, sidewalk, driveway,
foundation, swimming pool, or other structure) wetlands, springs or aquifers quality or
potability of water.
10. Any loss of dame caused by buried debris, underground springs, sinkholes, mine shafts,
uncontrolled fill or other anomalies.
11. Microorganisms, fungus, decay, we rot, dry rot, soft rot, rotting of any kind, mild mildew,
vermin, termites, insects, rodents, birds, wild of domestic animals, plants corrosion, rust,
radon, radiation, formaldehyde, asbestos, and any solid, liquid or gaseous pollutant,
contaminant, toxin, irritant or carcinogenic substance, whether organic or inorganic, and
electromagnetic field or emission, including any claim of health risk or inhabitability based
on any of the foregoing.
12. Damage to real property which is not part of your Home, glass breakage, bodily damage or
personal injury or consequential damage and expenses. Consequential damages defined as:
all damage or costs for which a remedy is not expressly provided for in this warranty which
includes, but is not limited to: costs of shelter, transportation, food, moving, storage or other
incidental expenses, including those related to relocation during any work performed under
this warranty, loss of use, loss of wages, inconvenience, annoyance, and diminution in value
of the Home; any and all consequential loss or damage to personal property, and damage to
property which You do not own, including physical or mental pain and suffering and
emotional distress, and any medical or hospital expenses, or lost profits.
13. Dampness or condensation due to your failure to maintain guttering, caulking, flashing or
14. Damage to or deficiency in water supply systems, sewage disposal systems, septic systems,
leach fields, sewer systems and drains.
15. Manufactured items which are covered by a manufacturer’s warranty, including but not
limited to, appliances, fixtures, items of equipment, including attachments and appurtenances;
neither does this warranty cover system deficiencies that are caused by a failure of any
manufactured item or failure to comply with manufacturer’s warranty requirements. For
example, air conditioning units, attic fans, boilers, burglar alarms, carbon monoxide detectors,
ceiling fans, central furnaces, garage door openers, garbage disposals, gas and electric meters,
heat exchangers, heat pumps, humidifiers, intercoms, interior sprinkler systems, oil tanks,
outside lights or motion lights not attached to the Home, ranges and range hoods,
refrigerators, sewage pumps, smoke detectors, solar collectors, space heaters, sump pumps,
thermostats, trash compactors, washers, water pumps, water softeners, water heathers,
whirlpool bathtubs, whole house fans and similar items.
16. Should the homeowner, or any of its agents, past or present, have any knowledge, second
hand or other wise, of potential problems, it is their responsibility to not so on application. In
addition, homeowner is to provide name and company that performed previous repairs with a
copy of the contract providing documentation of what, where, and when all repairs were
made. AFW will cover the remaining portion of home. AFW will not cover the area where
the repairs were made.
SERVICE, REPAIRS AND PAYMENTS
Actions taken to stabilize Major Structural Defect will not extend the periods of coverage
provided in the Warranty Term(s). If a Major Structural Defect claim qualifies for coverage,
AFW has the right to choose to repair, replace or pay the reasonable cost of repair or replacement
of any covered Major Structural Defect – not to exceed $10,000 for 3,500 sq.ft. or less home or
$15,000 for greater than 3,500 sq.ft. home. Any events which cause a delay in the performance of
the warranty obligations of the AFW, and which is beyond the control of AFW, shall excuse
AFW from performing, until the effects causing the delay are remedied.
The right to repair or replace is solely that of AFW, and the decision to make payment in lieu of
implementing the covered repairs is solely that of AFW. Replacement does not mean an
obligation to purchase Your Home in the event of a complaint or claim nor under any other
circumstance. If requested to do so, you must sign and deliver to AFW, a full and unconditional
release, in recordable form, of all legal remedies and rights to recovery (including subrogation
rights) with respect to the warranted Major Structural Defects, and any condition arising form the
warranted items, prior to payment for the reasonable cost of repair or replacement, or once the
repair or replacement has been made. You must execute and deliver any and all instruments and
documents, and take any and all other actions necessary to secure such rights; including, but not
limited to: the repair of dame to the designated load bearing element(s) which is necessary to
restore its load bearing ability. All decisions concerning the repair of Major Structural Defects,
including, but not limited to: development and choice of a repair design of (“plan”), method of
repair, execution of repairs, replacement of covered defective items, as well as all matters
pertaining to the repair or replacement of all covered damage, belong to the sole discretion of
AFW. There will be a $100 deductable per service call for any maintenance and/or repair calls.
CANCELLATION AND TRANSFER
AFW reserves the right to cancel this policy at anytime. AFW may declare this contract void in
the event of fraud, or of material misrepresentation, implied or expressed by Homeowners,
Tenants or Representatives of any fact or circumstance relating to the designated load bearing
elements covered by this contact or for premium, service fee, or accounts receivable not paid.
Accounts receivable will be turned over to collections if not paid within 60 days. This warranty
policy is transferable, agreement remains with the property. A New Owner Transfer fee of $100
is required of any subsequent owners, and new owner must notify AFW within one (1) month of
taking ownership of warranted property.
Any controversy or claim arising out of or relation to this contract, or the breach thereof, shall be
settled by arbitration administered by the American Arbitration Association under its Construction
Industry Arbitration Rules, and judgment on the award rendered by the arbitrators) may be
entered in any court having jurisdiction thereof.
This agreement states the entire agreement of the parties and merges into this agreement all
statements, representations, and covenants heretofore made, and any agreements not incorporated
herein are void and of not force and effect. This Agreement may not be varied, altered or
amended, except by a written instrument executed by the parties as provided herein.