Home equipment breakdown insurance is designed to cover many aspects of a home that aren't covered by a standard home insurance policy, primarily when it comes to expensive add-ons such as appliances.

Appliances have largely occupied a grey area when it comes to whether or not home insurance covers them. Although this has led to confusing situations for many homeowners making claims, this grey area becomes a lot clearer when the idea of home equipment breakdown insurance is brought to mind.

Generally, standard home insurance will cover your appliances when they're damaged by outside perils, such as fire or natural disasters. However when your appliances are damaged by something more internal, such as mechanical or electrical problems, they are not covered by standard home insurance policies. These internal threats though are covered by home equipment breakdown coverage, if you include it as an add-on to your home insurance policy.

Generally speaking, Ontario home equipment breakdown coverage applies to electrical, mechanical and pressure-system equipment that has been damaged or rendered inoperable by: Electrical power surges; Motor burnouts; Installation that was not done correctly; Operator error.

There may be special limits for your Ontario home equipment breakdown coverage, depending on which insurance carrier you are with and how your specific policy is written. Some insurance companies have a limit of around $100,000, subject to a deductible, and that's the only option. Other companies offer several limit options, while others may not have any special limits on home equipment breakdown coverage.

When adding an endorsement for home equipment breakdown coverage to your homeowners policy, it's essential to make sure you inform your insurance broker at Morison Insurance about all the equipment, appliances and systems on your residential property that need to be included in your Ontario home equipment breakdown coverage. That way, your insurance broker can ensure you have adequate coverage limits to get you the necessary financial assistance to get your equipment functioning again when it suffers a breakdown.

Insurance can be complicated, contradictory, and difficult to understand. If you wish to go without a broker, you not only need to research finer points of how insurance works, but you also need to do plenty of extra paperwork and shopping around.

When you work with a broker however, all of that is done for you. A broker comes in with a vast array of knowledge in how to navigate the insurance world. Furthermore, they will do so, and be able to compare multiple quotes in order to get the best deal possible. Not only will this save you plenty of time, but it could also save you money, as a broker will likely know if you are able to get any discounts, and will factor that into their quotes for you.

Anyone who owns a residential property — new builds and older homes alike. Coverage can apply to so many items and features that any age of home could benefit.

Not covered: damage from old age, wear and tear, lack of maintenance (rust, mould, pest damage). Also excluded: physical loss from fire, lightning, harsh weather, smoke, flooding (covered by base home insurance). Intentional misuse / purposeful damage is not covered — must be a genuine accidental breakdown.

Generally not part of a standard homeowners policy. Must add as an endorsement.

Example 1: Furnace breaks during a winter storm — HVAC can diagnose but new furnace is expensive out of pocket. Example 2: Power surge from a storm sends voltage spike through outlets, destroying expensive technology. Key reminder: covers sudden/accidental breakdowns only — not long-term water damage, freezing, or similar.

Living expenses coverage is a complementary endorsement: if furnace breaks in winter and family must relocate, living expenses coverage covers hotel/relocation costs until heat is restored.