New Coverages for Home Insurance

Many agencies are now offering two new and exciting coverages at a very affordable price. Adding these endorsements to your Homeowners policy is simple – it just takes a phone call or email. These coverages are called Equipment Breakdown Coverage and Service Line Coverage.

What is Equipment Breakdown and what does it cover?

Equipment Breakdown Coverage: This is an optional coverage called an endorsement that provides coverage for accidental direct physical loss to covered property caused by equipment breakdown. The wear and tear exclusion in the policy applies to this coverage. Covered losses must be direct, accidental, and sudden, such as a broken part or electrical arcing. Routine performance failure due to age is not covered. A deductible applies to each occurrence at $500. When you consider the cost of appliances, electronics, HVAC – a $500 deductible is much more affordable than paying thousands to replace the damaged items.

For just $2 – $3 a month, Equipment Breakdown Coverage is a cost-effective way to keep critical household equipment up and running after a mechanical or electrical breakdown—which are often not covered under a standard Homeowners policy. Some of the coverage highlights include:

Broad Coverage – Home mechanical, electrical, and electronic equipment is covered including appliances, heating and cooling systems, televisions, and computer equipment.
High Limit and Low Deductible – Coverage up to $50,000 and a deductible of just $500.
Energy Star – After a loss, provides a greener replacement by covering the additional cost to replace non-Energy Star® equipment with Energy Star® rated equipment (up to 125% of value to repair or replace).
Expedited Repair or Replacement – Accelerates recovery by paying the extra costs to expedite repair or replacement (up to $3,000 per occurrence).
No Adverse Premium Impact – Any claims made under this coverage option will have no impact on future premiums or agent loss ratio.

What is Service Line Coverage?

Service Line Coverage: This is an optional coverage called an endorsement for physical loss or damage to covered service lines on the residence premises that is the direct result of a service line failure. Covered losses include, but are not limited to, wear and tear, rust and corrosion, mechanical breakdown, freezing or frost heave, and tree or other root invasion. Coverage is limited to that part of the service line running from the point of connection to the main service or utility line up to the dwelling.

For $3 to $4 a month, Service Line Coverage is a cost-effective way to insure against service line failures – which are often not covered under a standard Homeowners policy. Some of the coverage highlights include:

Broad Coverage – Covered service lines include exterior underground piping and wiring providing one of the following services to the residence: communications, compressed air, drainage, electrical power, heating, waste disposal, and water.
High Limit and Low Deductible – Coverage up to $12,000 and a deductible of just $500.
Environmental Improvements – After a covered loss, provides coverage for the additional cost to replace with materials that are better for the environment, safer, or more energy or water efficient than the materials being replaced (up to an additional 50% of the cost to repair or replace).
Excavation Costs – After a covered loss, provides coverage for the necessary and reasonable excavation costs that are required to repair or replace the damaged covered service line.
Expedited Repair or Replacement – Accelerates recovery by paying the necessary and reasonable extra costs to expedite repair or replacement.
Coverage for Outdoor Property – After a covered loss, provides coverage for outdoor property (including but not limited to trees, plants, lawns, walkways, and driveways) that is damaged as a result of a service line failure.

Several years ago, a client had a crushed sewer line under the driveway which was damaged at the time the home was built. Over the years, the pipe became blocked and water and sewer backed up into the garage and basement. At the time, this coverage was not available, so the homeowner had to pay to have the driveway removed, a new pipe installed, rock and dirt brought in for fill, a new driveway poured and the garage and basement sanitized. The cost was over $7,000. The city did not provide assistance since their coverage is limited to 10 feet from the maintenance cover in the street. Had this coverage been available, the homeowner would have only paid $500 instead of $7,000.

This is a very affordable and valuable coverage that could save the homeowner thousands of dollars. Give Colorado Insurance Team a call today for a quote 720-432-7165.