Reading the care contract before you sign.
The eight clauses in a Houston home care contract that families most often overlook, and the specific questions to ask before you sign. Written by a business owner who reviews these contracts every week.
Reviewed Feb 2026 · By Serhat Bolukbasi, MBA · CEO & Owner · Northwestern University Kellogg School of Management
Home care contracts are usually 8-15 pages, mostly boilerplate, and written by lawyers to protect the agency. That's fair. What's not fair is that families sign them under emotional pressure (usually right after a hospital discharge or a fall) without reading them. The result: unexpected charges show up on month-two's invoice, and the family feels betrayed.
The eight clauses below are the ones I've seen cost Houston families thousands over the years. Any reputable agency will answer the questions in this article directly and honestly. The ones that dodge are telling you something.
The eight clauses that matter
1. Holiday and overtime rate schedule
Many agencies charge 1.5× or 2× rates on six federal holidays (New Year's, Memorial Day, July 4, Labor Day, Thanksgiving, Christmas). Some add an overtime multiplier for shifts over 40 hours/week per caregiver.
For 24-hour care across a year, holiday and overtime surcharges can add $3,000-$8,000 to the bill.
Ask directly: 'On which specific days do you charge holiday rates? What is the multiplier? What is your overtime policy for a caregiver working more than 40 hours in one week?' Get the exact list in writing before signing.
Homewatch of Houston Galleria does not charge holiday surcharges.
2. Minimum shift length
Most agencies require a 3-4 hour minimum per shift. A cheaper-looking hourly rate often hides a 4-hour minimum: if you only need 2 hours of morning help, you're paying for 4.
Over a year of daily 4-hour minimums when you only needed 2, you've spent about $10,000 on unused time.
Ask: 'What is your minimum shift? Is it different for weekends or holidays? Can we book shorter visits at a higher per-hour rate if it makes sense for our situation?' Some agencies flex; some don't.
Homewatch has a 4-hour minimum for standard visits; we sometimes flex for established clients.
3. Re-engagement or reactivation fees
If you pause care (a family member visits for two weeks, the client goes to the hospital, you take a summer break) some agencies charge a $50-$150 'reactivation fee' when you restart.
Two pauses a year at $100 each = $200/year. Small on paper; annoying every time.
Ask: 'What happens if we pause care for a week or a month? Is there any fee to restart?'
No re-engagement fees at Homewatch. Pause any time, restart any time, no charge.
4. Mileage and transportation billing
Some agencies bill mileage when the caregiver drives the client to appointments, errands, or the grocery store. Charged per mile or per trip.
Two appointments a week + errands = 100-200 miles a month. At $0.65/mile, that's $65-$130/month in extra billing you may not have expected.
Ask: 'Do you charge mileage when the caregiver drives our loved one? What is the rate? Is it capped?'
Homewatch does not bill mileage in Houston-area service zones.
5. Cancellation policy and notice period
Cancellation policies range from 'anytime, no penalty' to '30-day notice required or you owe the full month's care.' Some contracts include annual auto-renewal clauses.
A one-month notice period on a 24-hour care plan is $20,000+ if you're stuck paying for care you no longer need.
Ask: 'What is your cancellation policy? What notice is required? Is there a penalty? Is there an auto-renewal clause? Can I cancel individual shifts with 24 hours notice?'
Homewatch: cancel with 24 hours notice, no penalty, no long-term contract, no auto-renewal.
6. Caregiver replacement / re-match fees
If the first caregiver isn't the right personality fit and you request a swap, some agencies charge an 'assessment fee' for the second match.
$100-$300 per re-match. Some families burn through this two or three times before landing the right caregiver.
Ask: 'If the caregiver isn't the right fit and we ask for someone else, is there a fee? How many free replacements do we get?'
No re-match fees at Homewatch. Finding the right person is our job, not yours.
7. Payment terms and late fees
Invoicing frequency (weekly, bi-weekly, monthly), payment methods accepted, late fees, and interest on overdue balances.
A missed invoice + late fee at 1.5%/month adds up over a year of continuous care.
Ask: 'How often will I be invoiced? What forms of payment do you accept? Can I put a credit card on file for auto-pay? What happens if a payment is late?'
Homewatch invoices bi-weekly with auto-pay option; no late fees for clients on auto-pay.
8. Long-term care insurance billing
Whether the agency bills your LTCI carrier directly or requires you to pay upfront and file for reimbursement.
The difference between direct billing (you pay nothing out of pocket) and reimbursement (you front $8,000-$15,000/month and wait 30-90 days) is enormous for cash flow.
Ask: 'Do you bill my long-term care insurance carrier directly, or do I pay upfront and file for reimbursement? Do you accept Assignment of Benefits?'
Homewatch direct-bills any LTCI carrier and accepts Assignment of Benefits. Free policy review before commitment.
Five negotiating tips
- Never sign the same day you get the quote. Take the contract home, read every page, and come back with questions. A reputable agency respects this; a pressuring agency is a red flag.
- Have a second family member read the contract independently. Two sets of eyes catch different things.
- If a specific clause is a deal-breaker (say, a mileage fee for a family that does a lot of appointments), ask if it can be waived. Established agencies often flex for a good-fit client.
- Get every promise made verbally into writing before signing. 'Oh, we'll waive that' means nothing if it's not in the contract.
- Ask for the agency's Texas HHSC license number and verify it on the state directory (hhs.texas.gov) before signing. A revoked or suspended license is public information.
What our contract looks like
Our contract is one page. Rate, minimum shift, cancellation policy, and payment terms are on the front. There are no holiday surcharges, no re-engagement fees, no mileage billing, no re-match fees, no long-term commitment, and no auto-renewal. If it's not written on the page, we don't charge for it. Cancel with 24 hours' notice; pause and restart any time.
We're happy to email you a blank copy of our contract before your consultation so you can read it in advance. Just call our office and ask; we'll send it the same day.
Keep reading
The real cost of home care in Houston, 2026
Hourly, 24-hour, and live-in rates plus the four hidden line-items families miss.
Chapter IHow to actually use your long-term care policy
Reading the daily benefit, the elimination period, and the ADL trigger.
Resource14 questions to ask any home care agency
Free vetting checklist for families comparing agencies.