Blog

Protect Your Home Systems, Part 3: Home Systems Insurance

What Is the Best Way to Protect Your Critical Home Appliances, Systems, and Equipment? (Part Two of a Three-Part Blog Series)

When you own a house or condo, there is no truer statement than, “Anything that can go wrong will go wrong” (Murphy’s Law).

Your furnace is likely to call it quits in the middle of winter, your garage door opener is going to break when you’re already late for work, and your plumbing is almost certain to back up right before the family comes over for Thanksgiving.

For this reason, the Gilbert Insurance team created a three-part blog series that explores the following options available to you for protecting your home’s most important equipment from unexpected breakdowns.

Whether one of these options or a combination makes the most sense for you, Gilbert is here to help you think through the optimal way to protect your home’s most important mechanicals—and your wallet—from the unexpected. In the final installment of this blog series, we’ll review the comprehensive coverage provided by a home systems protection endorsement.

Should I add a Home Systems Protection endorsement to my home insurance coverage?

When you add a Home Systems Protection endorsement to your homeowners insurance policy, you are getting cost-effective coverage in the event one of your critical home systems breaks down.

For you to fully understand the benefits of this endorsement, we strongly recommend talking to your local insurance agent or contacting the professionals at Gilbert Insurance. In the meantime, the following are general answers to the most frequently asked questions we get from homeowners about this added coverage.

What does a Home Systems Protection endorsement cover and not cover ?
Most of the things that you rely on every day to keep your home comfortable, convenient, and secure typically fall under this comprehensive endorsement. No matter how old they are, the following home systems, equipment, and appliances should be covered if damaged as a direct result of a sudden or accidental mechanical or electrical breakdown:

  • Central air conditioning
  • Boilers, furnaces, and heat pumps
  • Conventional and solar water heaters
  • Radiant flooring
  • Renewable energy systems
  • Water purification and filtration
  • Well pumps
  • Installed sump pumps
  • Pool and spa pumps and heating and filtration systems
  • Electrical service panels
  • Permanent emergency generators
  • Home security monitoring and control devices
  • Chair lifts and elevators
  • Kitchen and laundry appliances
  • Home entertainment equipment
  • Power tools and shop equipment
  • Lawn and garden equipment
  • Portable and permanent generators
  • Mobile medical equipment

In addition, if you are unable to stay in your home due to the loss of use of one of these systems, this endorsement should help pay any additional costs related to finding a place to stay, as well as for the replacement of any food that has spoiled.

While this endorsement will not cover breakdowns due to normal wear and tear, it will cover the costs to repair a system that has lost functionality due to a manufacturer’s defect, improper installation, or past repair. It should even cover a loss that results from your failure to clean or maintain the system as specified by the manufacturer.

How long does a Home Systems Protection endorsement last?
Once you add the coverage to your homeowners policy, it will be there as long as you want it. Should you ever wish to cancel, you can easily do so by contacting your local insurance agent.
How much does a Home Systems Protection endorsement cost?
For just $35/year, home systems protection coverage can provide homeowners with up to $100,000 coverage per occurrence. However, prices will vary depending on your insurance carrier, as will the amount of deductible that you would have to pay out of pocket should you have a system breakdown. This endorsement may also end up paying you back—with up to 150% in efficiency incentives for upgrades you make to home systems and appliances that are more energy or water efficient, or environmentally friendly.
How are repairs handled with a Home Systems Protection endorsement?
If any of your covered home systems or equipment malfunctions, having the home systems protection endorsement allows you the freedom to select the place you will go to get a repair or replacement estimate. Once you get this quote, then you can submit it to your insurance company for review. As long as it fits within your insurer’s guidelines for reasonable repair or replacement costs for this specific item, you should receive approval to move forward.

When you are speaking with your insurance agent about adding a Home Systems Protection endorsement, there a few more things we recommend you discuss.

  • Determine your home’s level of risk for a large system or service line breakdown, and if you would be comfortable paying out of pocket for significant, unexpected repairs.
  • Review your current home insurance policy for all coverage gaps to help you better evaluate the value of the home systems protection endorsement and other special coverages.
  • Consider adding service line protection to provide cost-effective coverage of failures of your water, sewage, heat, steam, or power service lines due to leaks, breaks, tears, ruptures, or collapse.

Whether you’re planning to be in your home for just a few years, or you’re in your forever home, it’s a good bet that one or more of your major appliances or mechanical systems will break down, and at the worst time possible. A home systems protection endorsement provides simple, affordable, and broad coverage for repairing and replacing essential equipment when it fails.

Gilbert Insurance is here to help you select the right protection for your home systems and equipment

Since every plan has benefits and disadvantages, as well as an impact on your wallet, please feel free to contact one of our professionals for more information. We would be glad to help you weigh this and other important choices you have to make as a homeowner and assist you in better protecting your biggest investment.