Our homes today are sophisticated webs of technologies. Our interconnected home systems work to make our homes feel more comfortable, personalized, and safe.
But just one malfunction in the system can bring the entire thing down. And unfortunately, some home systems malfunctions may not be covered by a standard homeowner’s policy. While a standard policy covers external causes of damage (windstorm, fire, hail, etc), it often does not cover internal causes of damage. For instance, many policies will not cover electrical and mechanical breakdown.
For scenarios like this, there’s home systems protection coverage.
What is Home Systems Protection?
Home systems protection is an endorsement, or optional coverage, that can be added to your homeowners insurance. It protects the equipment and built-in systems in your home from sudden and accidental mechanical and electrical breakdown.
What is Covered by Home Systems Protection?
Here are some common home systems that may be included in a home systems protection plan:
- Kitchen appliances (microwave, oven, refrigerator, dishwasher)
- Clothes washers and dryers
- Computer and entertainment systems
- Heating and A/C systems
- Water heaters
- Well-water and sump pumps
- Security systems
- Emergency generators
- Electrical Panels
- Pool, spa, and exercise equipment
Home systems protection coverage usually includes repair or replacement costs. This means that your insurance may cover the cost to fix or, if needed, to replace a system. But this coverage may also include the following:
- Additional living expenses and rental value – If you are forced to live elsewhere while repairs are taking place, your insurance may cover this cost.
- Expediting expenses – Need to get a repair done quickly? Your insurance may cover the additional cost of speeding up repairs.
It’s important to know that not all home insurance endorsements are made equal. One insurance carrier may cover certain appliances or systems that others will not. Please verify with your insurance carrier that their home systems protection endorsement meets your needs.
What is Not Covered by Home Systems Protection?
Home systems protection will not cover wear and tear, lack of maintenance, and neglect.
All equipment has a shelf life. Insurance carriers expect you to properly maintain and replace your equipment as it ages.
For example, if you have an old furnace that breaks down due to natural causes, your insurance carrier may not protect you. But, if you have a furnace in good condition and regularly maintained that breaks down suddenly, your insurance carrier is likely to protect you.
Home Systems Protection vs. Home Warranty
As part of your insurance policy, home systems protection will help pay for damages caused by unexpected events. On the other hand, a home warranty is designed to protect your home systems from normal wear and tear. Together, home systems protection and a home warranty can protect you from both expected and unexpected damages that may occur.
In the end, it is vital that you choose the right type and amount of coverage to protect your property and your investment. If you are looking to protect the systems that keep your home working smoothly, then home systems protection may be a right fit for you.
