What is Boiler Insurance?

Boiler insurance is a specific kind of insurance policy that covers items related to the malfunction or breakdown of a furnace or “boiler.” This term arises from heating technologies using hot water and steam to effectively heat an indoor space. Regardless of changes in heating technology, boiler or heating system insurance may still be a vibrant part of the residential or commercial insurance system in any of several countries or regions of the world.

Some insurance professionals and others refer to boiler or furnace insurance as “mechanical breakdown” coverage. This type of insurance can be listed under a more general category of “equipment” coverage, especially in commercial boiler insurance policies that cover heating as part of a manufacturing or other business process. Boiler insurance and similar infrastructure coverage can also apply to residential or commercial insurance where standard heating systems keep the inhabitants of a building warm.

For those who are looking at what a boiler or furnace insurance policy typically covers, the specifics of coverage vary from one policy to another. Boiler or heating system insurance policies will typically cover the cost of repairing a malfunctioning heating system. They may also cover any incidental water damage, according to specific language in a policy, although water damage is often excluded in policies. Comprehensive boiler insurance policies might cover the costs of “creating livability” when a boiler breakdown compromises temperature in a building or indoor space.

In home policies, boiler or furnace insurance can be a separate rider attached to an overall homeowner’s insurance policy. In some cases, boiler insurance might be a completely separate type of coverage. Each nation has its own system for covering residential buildings, with standards applying to comprehensive and itemized coverages. For example, in many parts of the United States, individual states create funds to support specific types of natural disaster insurance that are not covered by most private insurance companies.

Commercial boiler insurance will generally be part of a greater insurance package for comprehensive manufacturing or other operations. Small business policies can include boiler insurance in an “umbrella policy” that covers multiple vehicles and buildings, as well as business liability insurance. These greater insurance packages are key for any business that has multiple assets, as well as liability related to products or services. Both commercial and residential policy holders should read their insurance policies carefully to figure out if the existing policy covers boiler or heating system breakdown, or whether they should seek out additional boiler insurance coverage.