Overview of Boiler Insurance

Boiler insurance is under the umbrella of property insurance. It pays for accident loss to equipment or machinery. Often times, this type of policy is purchased to cover repairs associated with the repair or replacement of a home boiler. Even though it is known as boiler insurance, this type of policy can be purchased to cover a variety of items. This can include machinery, electronics, and even plumbing. Depending on where you live, boiler insurance may also be referred to as machinery and equipment insurance or equipment breakdown insurance.

Types of Coverage

The type of boiler insurance that you purchase should be based on the type of machinery that you are dealing with. For example, a homeowner with a single boiler may only need “specific object” coverage. On the other hand, if you have more than one type of machine that needs covered, it makes most sense to consider a blanket policy. Just like any type of policy, there are many types of boiler insurance to become familiar with. They include:

  • Specific objects. With this type of policy, one boiler or piece of machinery in particular is covered by the policy.
  • Comprehensive. This includes all applicable objects and machinery, unless the policy specifically excludes them.
  • Blanket. A blanket policy can be purchased to protect all types of a particular object, such as electric motors.

Boiler Insurance Inspections

With most boiler insurance policies, an annual inspection is included. This is free of charge to the policy holder. As a condition of coverage, the boiler must pass inspection every year. If the boiler does not pass, it will need to be repaired in order for the policy to remain active. To ensure that a boiler is safe and up to operating standards, it needs to be serviced on an annual basis.

What about Property or Home Insurance?

Many people believe that they can do without boiler insurance because they already have a home insurance policy in place. Most property insurance policies, however, do not cover losses caused by malfunctioning machinery and explosions related to high pressure boilers. Purchasing boiler insurance can protect against these potential losses.

Who Sells Boiler Insurance?

Many of the largest energy providers in the world offer boiler insurance coverage. Remember that you do not have to be a current customer to buy a policy from an energy provider.

There are many things that may disqualify you from purchasing boiler insurance. For example, boilers that are older than 15 years may not be covered because they are more likely to breakdown. Along with this, there are always limitations on how much each repair can cost as well as the number of times that you can call for service. It is important to read the fine print to ensure that you know what your boiler insurance covers.

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