Is your “Smart Home” Properly Insured?
Lori Richardson, CIC. Personal & Small Commercial Producer
Today’s modern homes are outfitted with more sophisticated equipment and technology than ever before, but the standard homeowner’s insurance form does not include coverage for equipment breakdown coverage! This coverage provides protection in the event of an unexpected or sudden mechanical, electrical or pressure system breakdown including ruptures, bursting, bulging, implosion or explosion. The loss must occur suddenly and accidentally, as wear and tear is not covered.
Imagine for a moment if something like this happened to you…
- A whole-home electrical lighting system suffered an electrical breakdown including a burned-out master controller.
- An air conditioner compressor had a mechanical breakdown and required replacement.
- An insured’s property was hit with an artificially generated power surge. The boiler and water heater controls, security system and media equipment were damaged.
Some insurance carriers include a very low limit of coverage in their package endorsement, but in most cases, it is inadequate for the amount of technology in today’s smart homes. The good news is that this coverage can be increased and it is fairly inexpensive, typically $25 to $50 annually for $50,000 of coverage. Do you have a Ring doorbell, security system, Alexa, smart appliances or TV’s? A quick inventory of these items will more than justify the cost to add or increase your equipment breakdown coverage and provide peace of mind.
If you weren’t aware of this, you might be asking yourself if you’re with the right insurance agent! I would be happy to discuss your unique exposures and decide if adding mechanical breakdown coverage to your Homeowners policy would be beneficial for you and your family.