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Is ordinary wear and tear covered by Repair Service Plan
December 16, 2023
Is ordinary wear and tear covered by Repair Service Plan
          A customer is paying us monthly for Repair Service, and they are asking us if it covers wear and tear. I was going to say yes, but after re-reading the section, I am unsure.  Also, would a service call to clean cameras be considered part of Repair Service based on the standard wording?  Here is the contract provision:
          “All repairs, replacement or alteration of the security system made by reason of alteration to Subscriber's premises, or caused by unauthorized intrusion, water, insects, vermin, lightning or electrical surge, or caused by any means other than normal usage, wear and tear, shall be made at the cost of the Subscriber. Batteries, electrical surges, lightning damage, software upgrades and repairs, communication devices no longer”
          Ordinary wear and tear is covered by the Repair Service Plan.  The above provision mentions a few scenarios where there would be no coverage and then, by use of “other than normal usage, wear and tear” makes clear that it’s covered, not excluded.
          I don't know what ordinary v extra-ordinary means [honestly].   Cleaning cameras doesn't sound like a covered repair. Camera stops working [out of warranty] for no apparent reason; that's covered.  Stops working because of electrical surge or painter or bugs - not covered.
  Final thought - might depend on how often the customer seeks repair.  If once in years you may want to be more liberal; if monthly - you want to charge.
          When deciding whether to offer per call or Repair Service Plan consider the RMR opportunity, because that’s the only way to add value to the equity in your business.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301