A typical home insurance policy covers your home and its contents against perils such as fire, theft and vandalism—but did you know there are critical components of your house that aren't covered against mechanical breakdown? If your house burned down, your home insurance would cover elements such as your heating and cooling system or appliances. Still, suppose they were damaged or hindered by issues such as a power surge, faulty installation, mechanical failure or even user error. In that case, you'd be forced to pay out of pocket to replace them.
The solution to this problem is to speak with your knowledgeable Morison Insurance broker about adding an endorsement for home equipment breakdown coverage to your home insurance policy. Home equipment breakdown coverage extends your policy to provide insurance coverage for a mechanical breakdown caused by an insured peril. Call your Morison Insurance broker today to find out more about Ontario home equipment breakdown coverage and ensure you have adequate financial protection to prevent you from struggling with unexpected expenses.
For homeowners in Ontario, home equipment breakdown coverage is an endorsement that can be added to a home insurance policy. It allows homeowners to receive insurance compensation to cover the costs of repairs or replacement for a piece of home equipment that has suffered a breakdown due to motor failure, inadequate installation, an electrical power surge or operator error. It includes coverage for:
Home equipment breakdown insurance is designed to cover many aspects of a home that aren't covered by a standard home insurance policy, primarily when it comes to expensive add-ons such as appliances.
Appliances have largely occupied a grey area when it comes to whether or not home insurance covers them. Although this has led to confusing situations for many homeowners making claims, this grey area becomes a lot clearer when the idea of home equipment breakdown insurance is brought to mind.
Generally, standard home insurance will cover your appliances when they're damaged by outside perils, such as fire or natural disasters. However when your appliances are damaged by something more internal, such as mechanical or electrical problems, they are not covered by standard home insurance policies. These internal threats though are covered by home equipment breakdown coverage, if you include it as an add-on to your home insurance policy.
Anyone who owns a residential property can benefit from Ontario home equipment breakdown coverage. This coverage should be applied to not only new builds but also older homes as well. Home equipment breakdown coverage can apply to so many different items and features of your home that no matter what age your home is, some part of it could be covered. Speak with your expert broker at Morison Insurance to learn more about this coverage's importance.
Until recently, equipment breakdown coverage was only available on a commercial property insurance policy. Still, it is becoming an increasingly popular endorsement for homeowners insurance—which makes a lot of sense. Every house in Canada includes components essential to the household's function because they facilitate the comfort, safety and daily routines of those who live there. Most of that equipment is on the pricey side, while at the same time, it's impossible to live without it. That can put homeowners in a very stressful situation if they have to find room in their budget to pay out of pocket for a replacement that could cost thousands of dollars. But Ontario homeowners can avoid that stress, hassle and expense with a simple endorsement on their home insurance policy for home equipment breakdown coverage. You've invested in homeowners insurance for several good reasons, and all of those same reasons apply to the addition of Ontario home equipment breakdown coverage.
Regarding Ontario home equipment breakdown coverage, what qualifies as "home equipment" can vary according to your insurance provider. The components of your specific policy may differ according to whether you have a comprehensive or broad policy. With comprehensive coverage, all the parts of your house and its contents are covered except for items or components that are specifically excluded. If you have broad coverage, though, only the specific items listed on the policy are included, and all else is excluded. Most Ontario homeowners have comprehensive coverage, but regardless of whether you are adding a home equipment breakdown coverage endorsement to a comprehensive or broad form policy, you should consult with your Morison Insurance broker to determine which types of home equipment are covered.
Ontario home equipment breakdown coverage typically includes components such as:
Generally speaking, Ontario home equipment breakdown coverage applies to electrical, mechanical and pressure-system equipment that has been damaged or rendered inoperable by:
When trying to understand the types of perils that are not included in your Ontario home equipment breakdown coverage, it's important to note that damage arising from the old age of the equipment, basic wear and tear or a lack of maintenance over the years is not going to be covered by home equipment breakdown coverage. That includes problems such as rust, mould, pest damage, and other issues resulting from improper equipment care. It also doesn't cover physical loss or damage that arises from fire, lightning, harsh weather, smoke, flooding and similar types of perils, though it's worth noting that your basic home insurance should cover some or all of those perils.
We mentioned above that operator error is one of the perils that Ontario home equipment breakdown coverage applies. Keep in mind that it has to truly be an accidental breakdown. If you knew better but misused the equipment anyway or purposely tried to cause damage to the equipment by using it in a destructive or unsafe manner, it doesn't count as an error and will not be covered.
Every insurance policy is different because they're tailored to address your unique insurance needs. But home equipment breakdown coverage is generally not part of a standard homeowners insurance policy. Suppose you want to ensure that you have financial protection against paying out of pocket for repair or replacement in the event of a mechanical, electrical or pressure-system breakdown. In that case, you need an endorsement for home equipment breakdown coverage added to your existing home insurance policy.
The cost of home equipment breakdown coverage is not easy to pin down as there are several factors that could impact the cost. It's common home equipment breakdown coverage to cost between $25 and $50 per year, although this range does not include all policies, so it's not guaranteed that your quote will fit within this range. The best way to get an accurate home equipment breakdown insurance quote is to speak with a Morison Insurance Broker.
There are several things that could impact the cost of home equipment breakdown coverage. Below is a list of items that could possibly affect your rates. Please note that this is not an extensive list.
There may be special limits for your Ontario home equipment breakdown coverage, depending on which insurance carrier you are with and how your specific policy is written. Some insurance companies have a limit of around $100,000, subject to a deductible, and that's the only option. Other companies offer several limit options, while others may not have any special limits on home equipment breakdown coverage.
When adding an endorsement for home equipment breakdown coverage to your homeowners policy, it's essential to make sure you inform your insurance broker at Morison Insurance about all the equipment, appliances and systems on your residential property that need to be included in your Ontario home equipment breakdown coverage. That way, your insurance broker can ensure you have adequate coverage limits to get you the necessary financial assistance to get your equipment functioning again when it suffers a breakdown.
Understanding different types of insurance coverage can be challenging, as many different types of coverage apply to other items, circumstances and perils. There are many examples of situations where home equipment breakdown coverage is used.
One of the scariest is during a winter storm and your furnace breaks. An HVAC technician may be able to diagnose the issue, but paying for a new furnace out of pocket is something that most aren’t prepared for.
Another one that is often overlooked is having a power surge happen during a storm. This would send a voltage spike through your outlets, possibly destroying important, expensive technology. This can thankfully be prevented in many ways with power surge-protected outlets and power bars, but those are usually not used on every outlet.
One of the essential things to remember about Home Equipment Breakdown coverage is that it traditionally only covers sudden or accidental breakdowns. If the issue is due to long-term water damage, freezing and other similar situations, home equipment breakdown coverage will not cover that. Make sure to speak to an expert broker at Morison Insurance for more information.
Whether it’s a furnace breaking in December or a lightning storm that destroys a laptop, home equipment breakdown coverage isn’t always considered until it’s too late.
While you're considering including an endorsement for Ontario home equipment breakdown coverage on your home insurance policy, it's a good idea to consider additional coverage options that will complement your existing insurance. Living expenses coverage is a perfect example of this. Suppose your furnace breaks down in the dead of winter. In that case, your home equipment breakdown coverage will cover the replacement cost—but that replacement doesn't happen overnight, and your family can't safely remain in an unheated house. You'll need to relocate to a hotel or somewhere else until the problem with your furnace can be resolved, and the heat is back on. If you have living expenses coverage, your insurance company will provide funds to cover your relocation costs up to the limits on your policy.
Insurance can be complicated, contradictory, and difficult to understand. If you wish to go without a broker, you not only need to research finer points of how insurance works, but you also need to do plenty of extra paperwork and shopping around.
When you work with a broker however, all of that is done for you. A broker comes in with a vast array of knowledge in how to navigate the insurance world. Furthermore, they will do so, and be able to compare multiple quotes in order to get the best deal possible. Not only will this save you plenty of time, but it could also save you money, as a broker will likely know if you are able to get any discounts, and will factor that into their quotes for you.
If you want to know more about Ontario home equipment breakdown coverage or are ready to add an endorsement to your home insurance policy, contact the reliable brokers at Morison Insurance by calling 1-800-463-8074. At Morison Insurance, we don't work for the insurance companies—we work for you. That means you can trust us to keep your best interests at heart and work tirelessly to find the right insurance coverage for your specific needs.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.