Boiler insurance

From ArticleWorld

A Boiler insurance coverage covers not only boilers and other central heating systems but various kinds of machinery and equipment that one usually comes across in homes. Originating in cold countries it was promoted as a method of ensuring that boilers did not fail in the middle of a harsh winter either to jeopardize lives due to extreme cold or because of fires caused by an explosive breakdown of the boiler. Boiler insurance was also instrumental in the regular maintenance of boilers. However, since the early days almost all household utilities have come under insurance coverage. Thus, boiler insurance can also be termed as a kind of property insurance and includes most devices that use mechanical or electrical power.

Boiler and machine insurances will as a matter of course cover specific objects (specified by name and number), blanket objects (electric motored), and comprehensive objects i.e. including all objects unless indicated. Thus, while a typical property insurance claim will not as a rule cover losses caused by machine collapse boiler insurance will as a standard cover direct damage to covered property when caused by a covered cause of loss.

Covered property is any property that is owned by the insured or is in their care and for which the insured is legally liable. A covered cause of loss is a sudden and accidental breakdown of the insured's boiler and machinery equipment or any part of the equipment described in the policy.

In America, boiler insurance companies are required by law to ask for boiler inspections as a precondition for insurance, also as a matter of routine most companies carry out these inspections themselves, free of charge. In actual fact twenty percent of the insurance premium that is paid by the policy holder is the built in cost of boiler inspections.

Boiler inspections may be called by different names like equipment breakdown insurance or machinery and equipment insurance.