Stay Cool: Benefits of Home Systems Protection Coverage
In today’s modern homes, we rely on numerous complex systems and appliances that make our lives comfortable and convenient. From heating and cooling systems to kitchen appliances and entertainment equipment, these technologies have become essential to our daily lives. But what happens when these systems unexpectedly break down?
The repair costs can be substantial, and standard home insurance policies typically don’t cover mechanical or electrical failures. This is where Home Systems Protection comes in.
$13,992
Average cost to repair electrical system failures in a typical home (Source: Wawanesa Mutual)
What is Home Systems Protection?
Home Systems Protection (HSP), also known as Home Equipment Breakdown, is a type of coverage that explicitly protects your home’s systems and appliances. These can include your air conditioning and heating systems, electrical panels, water heaters, and even your home security system. For example, HSP will cover the expenses to repair or replace a furnace breakdown, provided the breakdown was sudden and unforeseeable due to an electrical or mechanical malfunction.
Heating & Cooling
Furnaces, air conditioning systems, water heaters, and radiant floor heating
Kitchen & Laundry
Refrigerators, ovens, dishwashers, washers, dryers, and built-in appliances
Electronics & Entertainment
Home entertainment systems, computers, and other electronic devices
Electrical & Pumps
Electrical panels, well pumps, sump pumps, pool pumps, and backup power systems
Systems & Equipment Typically Covered
These include furnaces, water heaters, air conditioning, kitchen and laundry appliances, home entertainment equipment, radiant floor heating, air and water filtration systems, computers, electronic devices, home security monitoring, sump pumps or pool pumps, and electrical panels. (Source: Wawanesa Mutual)
Benefits of Home Systems Protection
One of Home Systems Protection’s most significant benefits is its financial protection. Without this coverage, you could face thousands of dollars in repair or replacement costs if one of your systems breaks down. Extended warranties often offer inadequate safeguards, leaving you vulnerable to substantial losses for the appliances essential for heating, cooling, hot water, electricity, communication, and backup power.
To mitigate this risk, you may opt for Home Systems Protection, which can be added to your current home insurance policy. Some insurers offer you a discounted rate for the cost of adding this coverage if bundled with Service Line Coverage. Below are some examples of what can go wrong with your home’s systems and equipment and the cost of such losses (price estimates provided by Wawanesa Mutual).
Common Breakdowns & Typical Costs
- Regarding your electrical system, it’s crucial to watch for circuit breaker failures that can lead to overloaded and overheated wiring, lighting switches, outlets, and appliances. It is a safety hazard and can result in costly damages. Typical loss: $13,992.
- Additionally, it’s essential to regularly monitor your air conditioning system to prevent it from operating in an overheated condition, which can cause electrical failure. Typical loss: $5,101
- Your furnace is also a critical component; a broken fan/blower can cause damage to other parts. Typical loss: $5,500
- Finally, keeping your built-in stove up-to-date is essential, as out-of-date controls can break down. Typical loss: $3,750
$40-60
Annual Premium
Annual Cost
Potential Repair Costs
Factors to consider: Home Systems coverage exclusions
While Home Systems Protection is a valuable addition to your property insurance policy, it’s essential to understand that there may be exclusions to coverage. The following are not considered equipment breakdowns:
What’s Not Covered
- Rust, corrosion (including pinhole leaks), erosion, deterioration, or gradual loss of efficiency or functionality of covered home equipment.
- Leakage or seepage at or from any connection, valve, fitting, shaft or seal is also not included.
- Complete or partial interruption of electrical power, fuel or water supply, whether deliberate or accidental.
- Any condition can be corrected by resetting, recalibrating, or performing maintenance.
- Any cosmetic or other damage that does not impair functionality.
Frequently Asked Questions
How is HSP different from a standard home warranty?
Home Systems Protection is integrated with your home insurance policy and typically offers broader coverage than stand-alone home warranties. It usually has fewer exclusions and limitations, and claims are handled through your existing insurance provider rather than a separate warranty company.
Is there a deductible for Home Systems Protection claims?
Yes, your regular home insurance deductible (but it may vary) would typically apply to Home Systems Protection claims.
Can I add Home Systems Protection to my Condo Policy?
Yes, this coverage can be added to any homeowner, condo, and seasonal property insurance policies.
As mentioned above, those are only a few of the standard exclusions for this coverage. It’s important to carefully review the coverage inclusions and exclusions before purchasing property insurance with your broker, as they can differ between insurers.
The importance of staying cool and covered with Home Systems Protection
When you consider the potential repair or replacement costs of today’s complex home systems, adding Home Systems Protection to your policy is one of the most cost-effective insurance decisions you can make.
By including HSP in your property insurance policy, you can have peace of mind knowing that your most valuable assets are protected. From the air conditioner to the water heater, know that you won’t have to worry about the financial burden of repair or replacement if anything goes wrong. With this coverage, you can stay cool and covered, no matter what life throws your way.
Contact your property insurance broker today to learn more about adding Home Systems Protection to your policy.
Peace of Mind
24/7 Protection
For your home’s most critical systems
Financial Security
Avoid Major Expenses
Protection from unexpected repair costs
Convenience
One Policy
Simplified claims process through your insurer
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Posted in Home & Tenant on June 7, 2023 by Hope Prost
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