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Winter 2018  Volume 14, Number 4        

Alternatives to Insurance for Home Electrical and Mechanical Systems Losses

Loss Prevention

One thing you can (and should) do to reduce potential losses to these systems is to take good care of them by:

  • scheduling professional maintenance,
  • installing protective devices,
  • understanding the proper use of each system, and
  • replacing dated systems.

Even then, what if there's a loss? A ruptured air conditioning tube can cost more than $6,000 to fix, not including related expenses.

One option is:

Warranty Plans

You can purchase

  • Home warranty coverage
  • Service/protection plans
  • Individual item warranties.

There are several downsides to these options though. They are often limited in scope of what's covered, have settlement provisions that allow for reconditioned or remanufactured parts, require the use of a vendor network, cannot be purchased for every type of home, are generally expensive — and sometimes are only available when you make the purchase.

Examples of Losses and Costs

The following losses (and their approximate costs) may be covered by a warranty plan. However, they most likely would be covered by homeowners equipment breakdown coverage.

  • Cracked heat exchanger in forced hot air furnace — $7,500
  • Well motor pump windings melted and shorted out — $12,000
  • Gas hot water heater tank ruptured — $4,850
  • Propane generator crankshaft seized — $11,000
  • High-end refrigerator compressor seized — $7,500
  • Freon line ruptured in air-conditioning coils — $6,000

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In this issue:

This Just In...

What Do You Mean That's Not Covered?

What Happens if I have a Homeowners Claim?

Insuring Motorcycles…and their Drivers

Alternatives to Insurance for Home Electrical and Mechanical Systems Losses



The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2015 The Insurance 411. Tel. 877-762-7877.