Benham

BACKGROUND

Benham purchased a home in the City of Richmond in 2010. Her real estate broker purchased for her benefit a home warranty plan with First American (First American’s home warranty plan), with an effective date of August 6, 2010. Such plans typically cover the major systems and appliances in a customer’s home. Benham acknowledged receiving this plan, but stated she did not read it when she received it. First American’s letter with the First American home warranty plan advised her to review it. First American’s home warranty plan provided that it “covers only the items mentioned as covered and excludes all other.” It stated that First American “will not reimburse you for services performed without approval.” With certain exclusions, First American’s home warranty plan covered heating.1 A provision in First American’s home warranty plan under the heading of “Limits of Liability” stated: “The Company will not be responsible for any corrections, repairs, replacements, upgrades, inspections or other additional costs to comply with federal, state or local laws, utility regulations, zoning or building codes. . . . The Company will not be responsible for alterations or…