Boiler Inspection and Insurance Co. of Canada offers new home equipment breakdown coverage

The Boiler Inspection and Insurance Company of Canada has introduced a new product offering equipment breakdown coverage for home equipment systems, appliances, electronics and service lines.

The offering, branded as Home Systems Protection, is available through insurers that partner with the company, the company, part of the HSB Group and Munich Re’s Risk Solutions group, announced Thursday.

“Systems in the home are becoming more complex, costly and prone to breakdown,” Derrick Hughes, vice president for HSB BI&I commented in its statement.

“Yet, homeowners policies do not cover losses caused by electrical or mechanical breakdown. Manufacturer warranties, extended warranties and service contracts have limitations — our Home Systems Protection provides broad coverage at much less cost than extended warranties. It closes an important coverage gap.”

The program includes breakdown coverage  for heating, cooling, water and power, security and other home systems, appliances and electronics.

Coverages include damage caused by sudden and accidental mechanical or electrical breakdown; loss of use and additional living expenses if a home becomes uninhabitable; and spoilage of refrigerated goods, the company said.

Coverage also includes “efficiency incentives,” paying up to 150% on a covered loss for replacement of damaged equipment that is better for the environment, safer for people, or more energy or water efficient, HSB BI&I noted.

The program also includes an optional coverage for service line failure, which includes physical damage resulting in a leak, break, rupture or collapse of a pipe or line delivering water, drainage, heat, steam or power to or from a dwelling. Physical damage can be caused by accidents during digging or other work, root damage, deterioration, freezing and electrical arcing.