Mutual Boiler Re, AAIS Offer New Homeowner Coverage

Mutual Boiler Re, a leading equipment breakdown reinsurance provider, and the American Association of Insurance Services (AAIS) are now offering property and casualty insurers the ability to provide their homeowner clients with equipment breakdown coverage for an annual cost to the insured of US$15-US$50 per policy.

“From air conditioners to flat-panel televisions, many homes today contain appliances and electrical equipment and other high-valued possessions that can be expensive for homeowners to repair or replace,” said Ken Lavigne, vice president and operations manager, Mutual Boiler Re. “This new option minimizes the cost of traditional equipment warranty programs and allows insurers to provide homeowners with broad coverage and peace of mind in the event of a property loss.”

The new, flexible endorsement covers:

• all real and personal covered property
• surge losses
• expediting expense
• refrigerated property
• pollutant cleanup and removal

The endorsement also covers direct physical loss and underlying resulting loss of use from equipment breakdown, including physical loss or damage to all mechanical, electrical, and fiber-optic equipment—coverage often excluded from standard homeowners policies. Repair/replacement terms are automatically included as is coverage allowing the insured to replace property with equipment that is better for the environment, safer, or more efficient than the equipment being replaced.

Lavigne added that Mutual Boiler Re also will help insurers with the implementation of the equipment breakdown coverage option, including marketing, underwriting, pricing, and claims handling.

Mutual Boiler Re (www.mutualboilerre.com) has been providing equipment breakdown insurance in North America for more than 130 years and specializes in mechanical, electrical, and pressure systems breakdown treaty reinsurance and support services for commercial, homeowners, and farmowners lines of business in the property and casualty marketplace. Mutual Boiler Re works with more than 130 insurance companies to provide quality products and innovative services that enable broader and more competitive coverage to policyholders.

For more information about Mutual Boiler Re and the AAIS Equipment Breakdown coverage option, contact Sam Broomer, vice president, Mutual Boiler Re, at (800) 814-4458, ext. 804, or by e-mail at Samuel.Broomer@MutualBoilerRe.com.