Your Premium News - May 2020
When the time comes to renew your home insurance, your broker will review your current policy with you and ask about any changes that should be factored into your new policy. As your life changes, your insurance needs may change. Once you have confirmed the amount of standard home insurance you require, you may want to consider the optional types of insurance available for more complete coverage. One of those optional coverages is home equipment breakdown.
Home equipment breakdown coverage protects your appliances, heating and cooling systems, as well as electronics in the event of mechanical or electrical breakdown beyond the warranty period. As systems and appliances get more complex and thus potentially more prone to breakdown, home equipment breakdown coverage can provide protection while offering an alternative to extended warranties.
For example, your home insurance policy may cover water damage resulting from a broken-down dishwasher, but does not include coverage for fixing or replacing the dishwasher itself.
Home equipment breakdown coverage may provide protection for:
- Air conditioning systems
- Water heaters
- Appliances (dishwasher, oven, washer and dryer, etc.)
- Entertainment systems
- Deep well pumps
In the event of a covered claim, your equipment would be repaired or replaced at the discretion of the insurance company. If your home becomes uninhabitable due to an equipment breakdown, your policy may provide Additional Living Expenses (see your policy's wording) to cover an increase in living expenses and sometimes moving expenses while your equipment is repaired or replaced. Some policies also include an Efficiency Incentive to encourage system upgrades to models that are more energy or water efficient, or environmentally friendly.
Remember, insurance is for sudden, unexpected and accidental losses. Policies do not cover breakdown due to wear and tear, repeated seepage & leakage, or replacement due to age. Scheduling regular maintenance, conducting visual inspections of your appliances and equipment, and installing things like a surge protector can help to prevent potential breakdowns. Having equipment breakdown coverage can provide an added peace of mind.
Knowing your coverage is important! Knowing what is and what isn't covered in your policy will help you determine if optional coverage such as home equipment breakdown to ensure your electronics, appliances and systems is right for you. This coverage can be added to your policy at any time.
It's always a good idea to review your home insurance policy every year, so be sure to talk to your broker and ask about what optional coverage might be right for you.