Choice Home Warranty Breach of Contract Edison New Jersey

I purchased a 5 year home warranty from Choice Home Warranty (CHW) last November for $1,750. My AC unit failed a week ago. They sent out the service provider (SP) who said the fan motor and compressor need replacing. After I contacted SP, I was told CHW would only cover the $200 for the fan motor and because the fan motor failing caused the compressor to fail, they wouldn't replace the $800 compressor.

I have not been contacted by CHW. Their hold times are over 4 hours. The sales staff pick up the phone on the first ring. The new claims reps will answer, but don't have access to any info. I have been without AC for a week in 95F temp and without any help from CHW. 

The only mention in the warranty regarding the compressor is that there may be an additional disposal fee from the SP. No mention of cause and effect other than misuse or poor maintenance by the owner. The broken unit is 10 years old and has been serviced regularly. It is very likely the compressor was nearing the end of its useful life and only required minimal stress to finally fail. I purchased the CHW warranty for the AC unit that failed because I knew the unit was old and could fail.

CHW claims the coverage of the compressor is not covered according to excerpt from clause F-19 in the contract:

"You also agree that We are not liable for consequential, incidental, indirect, secondary, or punitive damages."

According to a claim rep I finally was able to talk to, says the compressor is a "secondary event" and is therefore not covered.

CHW hides behind vague statements in their contract. They will find any way possible not to pay for claims. I've had other warranties from competitors (2-10) and never had these issues. While they were more expensive, they paid for claims.

Ultimately, you get what you pay for.