HSB BI&I - Why do I need home systems protection?

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Why do I need home systems protection?

Think about the systems that keep homes safe, comfortable and running efficiently - from heating and cooling, to appliances, electronics and service lines. Electrical and mechanical breakdowns can happen at any time, causing damage and loss, and requiring repair and replacement.

Property policies typically exclude loss or damage caused by:
  • Electrical and mechanical breakdown, and,
  • The tearing apart, cracking, burning or bulging of a steam or hot water heating system or air conditioning system
Manufacturers’ warranties:
  • Are included in the purchase price, but only cover manufacturer defects.
  • Are limited to a specific product or part, for a short period of time.
  • Not all replacement parts or labour are covered.
Extended warranties:
  • Cover equipment breakdown during ordinary use over a specific period of time.
  • Do not cover breakdown caused by human error such as faulty installation, operator error or lack of maintenance.
  • Are expensive - around 20% of the product cost; and typically expire after 3 to 5 years.
Service contracts:
  • Cover routine maintenance and repair to equipment such as heating, cooling or plumbing.
  • Cover only a limited range of parts.
  • Will not replace complete units.
  • Plumbing service contracts will not cover loss or damage from the breakdown of water or sewage service lines.
Home Systems Protection offers broad coverage, at a much lower cost than warranties and service contracts.

Coverages include:

  • Direct damage caused by the sudden or accidental, mechanical or electrical breakdown to any home system, - including heating, cooling, appliances and electronics - no matter how old.
  • Loss of use, or additional living expenses if a home becomes uninhabitable.
  • Spoilage of perishable food.
  • Pays efficiency incentives, up to 150%, for upgrades to systems that are more energy, water efficient or environmentally friendly.
Did you know?
  • Homeowners own the outdoor water and sewer piping from their dwelling to their property’s boundary line.
  • The cost of repair or replacement of damaged underground piping outside the home is not covered by property policies.
  • A recent loss of $10,000 was incurred when an underground sewer pipe failed due to a tree root invasion.


Download more loss examples (PDF, 463 KB)



Service Line Protection is an optional coverage that pays for a service line failure, resulting in the leak, break, tear, rupture or collapse, of a homeowner’s water, sewage, heat, steam or power service line.

Common causes of service line failure include accidental intrusion, root invasion, deterioration or freezing.

Examples of home systems losses:
Electrical panel
  • A main electrical panel’s circuit breaker failed to trip, overloading and damaging wiring, lighting switches, outlets and appliances. All items were replaced along with the circuit.
  • Losses totalled $13,992.
Hot water heater
  • The failure of the water temperature control device in a hot water heater resulted in the burner continuing to burn and boil out the water in the vessel of a hot water heater. Sudden entry of cold water on the overheated surface led to the complete destruction of the vessel.
  • Losses totalled $2,100
Built-in stove
  • A built-in stove was replaced when out-of-date controls broke down.
  • Losses totalled $3,750
Protect homeowners

Home Systems and Service Line Protection cover gaps found in property policies. As technology and risk become more sophisticated, you can rely on The Boiler Inspection and Insurance Company of Canada to provide industry-leading products and services for equipment exposures.

For more information contact HSB BI&I

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