Why Covering Home Systems Matters

After a homeowner goes through the hassle of replacing a furnace or air conditioner, having to foot the bill for it is an unwelcome surprise.

Unexpected home equipment losses can cost thousands of dollars—and homeowners want these losses covered. In a recent survey conducted by Independent Agent and Hartford Steam Boiler, almost 70% of agent respondents said their homeowner clients would want coverage to cover the cost of repair or replacement due to breakdown for all home equipment, systems, appliances and electronics. Yet available solutions, like expensive warranties, are restrictive.

Next to the home structure, home systems are typically a homeowner’s most valuable property. To install a new boiler or furnace can cost $4,000. A central air conditioning system might be worth $5,000. Water filtration and treatment systems might be as high as $2,500. Not to mention the value of increasingly popular technologies such as emergency generators, home entertainment systems and high-efficiency appliances.

Today’s homeowners depend on more systems and new technologies than ever. But these home systems are not like other types of property—they are exposed to the risk of electrical and mechanical breakdowns as well as traditional property perils. Many of these systems are reliant on sensitive circuitry. With the amount of equipment in homes today and the sensitive technology that drives it, breakdowns are inevitable.

The good news is that agents can explain the value of this coverage. The vast majority of agents surveyed said they thought clients would be willing to pay to address these issues: 91% of respondents said their clients would pay $25-50 annually for insurance that covered the repair or replacement of home equipment, systems, appliances and electronics due to breakdown.

The best part? Providing clients with this protection can make you stand out as an agent. Approximately 87% of respondents agreed that a homeowners policy that covered the cost of repair or replacement of home equipment and systems would give them a competitive edge as an agent. With HSB Home Systems Protection, you can give your customers a way to protect the things standard homeowners insurance won’t. Given the value of these systems and the associated technical risks, home systems protection coverage is more essential than ever.