Mutual Boiler Re, an equipment breakdown reinsurance provider, and the American Association of Insurance Services, have announced that they are now offering property and casualty insurers the ability to provide their homeowner clients with equipment breakdown coverage for an annual cost of $15-$50 per policy.
The new endorsement covers all real and personal covered property; surge losses; expediting expense; refrigerated property; and pollutant cleanup and removal.
The endorsement also covers direct physical loss and underlying resulting loss of use from equipment breakdown, including physical loss or damage to all mechanical, electrical, and fiber-optic equipment-coverage often excluded from standard homeowners policies.
Repair/replacement terms are automatically included as is coverage allowing the insured to replace property with equipment that is better for the environment, safer or efficient than the equipment being replaced.
Ken Lavigne, vice president and operations manager of Mutual Boiler Re, said: From air conditioners to flat-panel televisions, many homes today contain appliances and electrical equipment and other high-valued possessions that can be expensive for homeowners to repair or replace.
This new option minimizes the cost of traditional equipment warranty programs and allows insurers to provide homeowners with broad coverage and peace of mind in the event of a property loss.