The Guarantee Announces Addition of Equipment Breakdown Extension to Guarantee GOLD Homeowner and Guarantee GOLD Secondary Homeowner Policies

The Guarantee is enhancing the breadth of coverage offered to our Guarantee GOLD^®clients. An Equipment Breakdown Extension will be automatically added to Guarantee GOLD^® Homeowner and Guarantee GOLD^® Secondary Homeowner Policies.

As a “specialty insurer”, our objective is to provide Brokers with products and services that complement and respond to the needs of your high-end clients. We were asked to include this coverage in our policy because Guarantee GOLD^® clients have complex equipment and technology in their home(s). We listened to the feedback and are enhancing the coverage which means that The Guarantee now offers the most comprehensive suite of homeowner policies in Canada through Guarantee GOLD^®

Coverage goes into effect for policies in Ontario, Manitoba and Alberta on September 1, 2012 for new business and October 1, 2012 for renewals. Brokers and policyholders in the province of Quebec will be able to access this added coverage later in 2012 (with more information to follow).

New Advantages for Our Partner Brokers:

– The Equipment Breakdown Extension read-in gives you new key benefits to highlight to your clients.

– The premium for the additional coverage has been built into the base premiums to allow us to continue offering competitively priced products in the marketplace.

– Broader coverage when compared to home warranty products or equipment service contracts that can cost hundreds of dollars annually.

– Equipment Breakdown Extension is included in every new policy and renewal.

– The policy can be tailored by increasing the basic limit ($50,000) to meet the needs of sophisticated primary and secondary homes.

– Equipment Breakdown Extension provides you with a solid advantage in the high value Personal Insurance marketplace.

– You are now able to solve two large pain points for high-end clients with this new coverage.

– Equipment breakdown can be costly, so the coverage can save them on repair or replacement expenses.

– Time is extremely important to high-end clients. Equipment/technology breakdowns are inconvenient and consume valuable time. 

Highlights of the Equipment Breakdown Extension include:

– $50,000 limit on any one accident

– Equipment Breakdown Extension covers the Dwelling, Detached Private Structures and Personal Property (Contents) included in the Guarantee GOLD^® Homeowner/Secondary Homeowner policies

– Additional Living Expense coverage is included

– $1,000 deductible

– $3,000 Enhanced Environmental and Efficiency Improvements limit for upgrade which qualify as “green”

– Basis of Loss Settlement – repair or replacement basis

Here are examples of the equipment and technology that is now covered by the Equipment Breakdown Extension:

– Heating and Central Air

– Ventilation systems and fans (HVAC)           

– Sub-zero refrigeration (appliances)   

– Boilers and water heaters      

– Heat pumps and solar heaters

– Chairlifts/elevator lifts and elevators

– Mechanical equipment (wine cellar)

– Home Theatre systems

– Central vacuums

– Electronic Monitoring systems

– Deep well pumps

– Backup Generators

– Electrical power panels         

– Pool mechanical equipment

– Solar Panels (personal use)

– Wind Turbines (personal use)

Examples that outline the advantages of Equipment Breakdown Extension to your clients:

• During a frigid winter, sediment buildup caused two sections of a boiler to crack and break down. A weekend rush job to replace the sections and restore the boiler to operation meant unexpected expenses. Total paid claim: $9,500.
• Dust accumulation in a main electrical service panel led to an arcing incident, leaving the house without power. An electrician removed the old panel box and breakers, located a replacement, and installed new equipment. Total paid claim: $5,500.
• During an ice storm, the engine driving an emergency generator broke down when the oil pump failed. The motor, generator bearings, and rotating elements were so damaged that the entire unit had to be replaced. Total paid claim: $7,500.
• Metal fatigue led to damage in the refrigerant line of a three-ton air conditioning compressor. The repair contractor replaced the line, compressor, and coil. Total paid claim: $4,000.
• Sand intrusion into a rural home’s well pump caused the impeller to fracture. Repairs required excavation and removal of all well piping to replace the pump. Total paid claim: $12,800.

* The amounts stated above pertain to the Equipment Breakdown Extension coverage only.

We have not altered the way Brokers do business with us. All underwriting and claims is handled by The Guarantee. Rest assured – we have a knowledgeable team with the necessary expertise to deal with larger and more integrated homes. Should a claim occur, we have a network of professionals across Canada in place to expedite the repair or replacement of the damaged equipment.

For more information on the Equipment Breakdown Extension please go to www.gcna.com and click on the Broker tab were you will find our F.A.Q’s to assist you.

If you have any further questions please feel free to contact your Underwriter or Guarantee GOLD^®Portfolio Manager.

Dean M Bast VP Marketing & Business Development National VP Guarantee GOLD^®

About The Guarantee:

We are a Canadian owned property and casualty insurance company serving the insurance needs of North Americans since 1872 with our head office in Toronto. Our branch offices are located in Montreal, Vancouver, Edmonton, Quebec City, Halifax and Woodstock. For 140 years, The Guarantee has taken pride in being the market leader in providing specialized products via the independent broker network.