DAILY NEWS Nov 1, 2012 11:16 AM - 4 comments

CAA Insurance Ontario introduces home equipment breakdown coverage

TEXT SIZE bigger text smaller text
2012-11-01

CAA Insurance Company (Ontario) has introduced two new products, including a new product covering some types of damage to home equipment.

The company has launched Home Equipment Breakdown coverage, which covers “appliances and electronics against mechanical, electrical or pressure-system breakdowns,” it said.

"The new coverage includes all your home's belongings from your computer to your lawnmower to everything in between," Robin Joshua, the company’s director of corporate underwriting and risk management said in a statement.

"Extended warranty plans can be expensive, hard to manage and usually cover a single piece of equipment. Our new Home Equipment Breakdown coverage goes a step further and covers multiple items, regardless of age."

The policy would cover breakdown from things like mechanical failures, but not equipment damaged by water, fire or vandalism, among other causes.

It also offers extra coverage for costs associated with temporary repairs or expediting permanent repairs up to $3,000. It also makes extra coverage available for perishable goods that are spoiled from a loss of power to a refrigerator, for example.

CAA Ontario has also introduced tire coverage, which it says extends past the existing manufacturer's warranty. Current policyholders will have tire coverage added to their policies at renewal time, CAA said. It includes:

  • Coverage for up to four tires on existing vehicle(s) (including winter tires)
  • Coverage on all repairs due to a road hazard ($25 limit/tire repair)
  • Coverage on all replacements due to a road hazard (no limit/tire)
  • Coverage on mounting and balancing replacement tires ($25 limit/tire)
Monitor These Topics


Horizontal ruler

Reader Comments

Most recent firstOldest first

mars

What is the cost of the Tire Warranty and HEB? I imagine it must carry quite a premium to cover everything in the house!

Posted November 13, 2012 12:54 PM


harry

I am impressed by the quick response from CAA Insurance to my questions

Posted November 5, 2012 08:48 AM


CAA Insurance

CAA Insurance’s “Home Equipment Breakdown” coverage is subject to a $500 deductible per occurrence. Where coverage applies, and the equipment cannot be repaired, it will be replaced and there are no restrictions on repair centers. Any claims made against this coverage will not affect the rating of the customer's property policy.

Posted November 2, 2012 12:25 PM


harry

No doubt this extended warranty program will be tied in with the homeowners policy,
The big questions for consumers will be
1. What is the deductible
2. Will depreciation apply or will the coverage be replacement of the item if it is not repairable
3. Will the consumer be directed to preferred vendors for the service repairs or replacement
4. If an insured makes a claim will the rates increase the following year or will the homeowner policy be cancelled
4.

Posted November 2, 2012 07:12 AM


FirstPrevNextLast
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Canadian Underwriter has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields