Optional endorsement · Equipment breakdown

Coverage for the systems your home runs on

Home Systems Protection is an enhancement to your homeowners insurance that covers sudden breakdowns of your home’s main systems, appliances, and electronics. Today’s homes have more equipment and sensitive technology than ever, and most homeowners policies exclude equipment breakdown.

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  • Up to $50,000Maximum limit under the endorsement
  • $500Deductible applied at the time of loss
  • Up to 150%Of like-kind replacement cost for a safer or more efficient upgrade, when replacement is needed

Why it matters

Why homeowners need it

Homeowners depend on the comfort and security their home systems provide. Most assume they’re protected from breakdowns by insurance, warranties, or service contracts, but they often are not.

Anyone who depends on home systems that are costly to repair and subject to breakdowns. The coverage protects a wide range of equipment, including a home’s main systems, appliances, and electronics.

  • Equipment breakdowns are excluded in most homeowners policies.
  • Home systems such as heating, air conditioning, and electrical can be a significant portion of a home’s value.
  • Home warranties can be more expensive and more restrictive about the equipment and limits they cover.

What’s covered

What’s included

Damage to covered home equipment

Direct physical damage, including electronic circuitry impairment, to covered home equipment that occurs on or off the residence premises.

Environmental, safety, and efficiency upgrades

The additional cost to replace damaged equipment with equipment that is better for the environment, safer for people, or more energy or water efficient. Covers up to 150% of the cost of like-kind replacement, only when replacement is necessary or required. After a covered breakdown, it also pays up to $300 toward a programmable or smart thermostat when one is not required by the manufacturer.

Spoilage

Physical damage to refrigerated property that spoils because of a home system breakdown, plus necessary expenses to reduce the loss, up to the amount that would otherwise have been payable.

Loss of use

Your policy’s Additional Living Expense and Fair Rental Value coverage extends to losses covered by this endorsement.

Expediting expenses

Reasonable extra costs to make temporary repairs and to speed up permanent repairs or replacement.

Future loss avoidance

Protective monitoring services, available only after a previous payment under this coverage for a breakdown of hot water heating equipment, a sump pump, or electrical equipment.

Green

The additional cost to repair or replace damaged property using equipment, materials, and service firms required or recommended by a recognized environmental standards program. It also covers recycling damaged equipment where practicable, flushing out the reconstructed space with outside air, reinstating an environmental certification, and an engineer authorized by the program to oversee the work.

Pollutant clean-up and removal

The additional cost to clean up or dispose of pollutants that are the direct result of a home system breakdown.

Limits and deductible

  • The limit depends on the age of the damaged equipment. Equipment less than 15 years old has a $50,000 limit.
  • Equipment 15 years or older has a $1,500 limit per damaged unit. If that equipment was newly installed and first used within the last 15 years, the $50,000 limit applies.
  • The maximum limit under the endorsement is $50,000, and a $500 deductible applies at the time of loss.

Real-world examples

How it has helped homeowners

These claim examples are for illustration only and assume the loss is covered on your policy. Totals paid after the deductible may include more than one coverage.

Air conditioner replacement

A cracked coil caused a four-year-old air conditioning unit to lose all its refrigerant, and it could not be repaired. The unit was replaced.

Paid after deductible: $4,500

Upgrade and smart thermostat

In a similar air conditioning claim, the replacement also qualified the homeowner for $300 toward a new smart thermostat under a separate sublimit.

Paid after deductible: $4,800

Spoilage

An electrical breakdown in a nine-year-old refrigerator’s main control panel shut the unit off, and all of the food spoiled. Coverage paid for the control panel and the spoiled food.

Paid after deductible: $2,500

Boiler replacement, plus a hotel stay

A faulty circuit in a water pump cracked a boiler that was less than 15 years old, so the boiler had to be replaced. Because the home wasn’t livable during the work, loss of use coverage also paid for two nights in a hotel. Most of this total was the boiler replacement.

Paid after deductible: $10,120

Equipment 15 years or older

A 17-year-old built-in dishwasher broke because of a broken shaft. Repairs were not possible, so the unit was replaced at the $1,500 limit for older equipment.

Paid after deductible: $1,500

Questions

Frequently asked questions

What is Home Systems Protection coverage?

Home Systems Protection is an enhancement to homeowners insurance that provides contemporary coverage for home system breakdowns, including a home’s main systems, appliances, and electronics.

If replacement is necessary, will the item be replaced with the same brand?

Not necessarily. Replacement is made with equipment of like kind, quality, and capacity as the damaged equipment.

Can equipment be upgraded to a more efficient model?

Yes. When replacement is necessary, coverage includes up to 150% of the cost of replacement with new equipment that is safer for people or more energy or water efficient.

Do I have to use a pre-selected service provider?

No. You can hire the contractor of your choice to repair or replace covered equipment. On request, Hartford Steam Boiler, Orange’s reinsurance partner, can help you find a contractor.

What could cause a claim to be denied?

The equipment must meet the definition of covered home equipment, and a sudden and accidental breakdown must occur. The endorsement excludes any peril already covered by your homeowners policy. Please refer to your policy for details.

What are the limits under this coverage?

Equipment less than 15 years old has a $50,000 limit. Equipment 15 years or older has a $1,500 limit per damaged unit, unless it was newly installed and first used within the last 15 years, in which case the $50,000 limit applies. The maximum limit under the endorsement is $50,000, with a $500 deductible at the time of loss.

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Covers repairs to the underground lines that bring water, power, gas, and internet to your home.

Ask your agent about Home Systems Protection

An independent Orange agent can tell you whether Home Systems Protection is available for your policy and help you add it.

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Important coverage information: This information is provided for general informational purposes only and does not modify or invalidate any of the terms or conditions of the policy and endorsements. For specific terms and conditions, please refer to the coverage form. Coverage is subject to eligibility, underwriting guidelines, policy terms, conditions, exclusions, and limitations, and may not be available for every policy. Coverage and associated services are reinsured under an arrangement with The Hartford Steam Boiler Inspection and Insurance Company (HSB).