You may think home equipment and appliance warranties may be enough protection in the event of a breakdown, but they’re not. Often they are limited to specified parts only. They also expire and do not always cover repair calls.

What are the main types of warranties for home equipment? We’ve listed them below, but you can also view our cheat sheet.

What are the main types of warranties for home equipment?

Repairman is repairing a washing machine. Entering malfunction

Manufacturers’ warranties are included in the purchase price of a new item, but only cover manufacturer defects, and are limited to a specific product or part, for a short period of time (for example, one year). If you read the fine print, you may find that not all replacement parts or labour are covered.

Extended warranties are usually sold at the point of purchase when you buy an appliance. But these are expensive, and can run at around 20 percent of the purchase price. They typically expire after 3 to 5 years, and while they cover breakdowns during ordinary use over a specific period of time, they do not cover breakdowns caused by human error such as faulty installation, improper usage, or poor maintenance.

Service contracts cover routine maintenance and repair to equipment such as heating, cooling or plumbing. They usually cover only a limited range of parts, and will not replace complete units should they become irreparable.

An alternative to warranties is insurance coverage.

Home Systems Protection

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Home Systems Protection offers broad coverage, at a much lower cost than warranties and service contracts – in fact, just pennies a day. As an insurance policy, it is renewable each year.

Coverage includes damage to your heating and cooling equipment, appliances and electronics – no matter how old – caused by a sudden and accidental breakdown.

Here are 3 examples of covered damage:


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

In addition to paying for damage, Home Systems Protection will pay related losses, such as additional living expenses such as a hotel if your home becomes uninhabitable, for example, if your heating system breaks down during extreme cold weather; spoilage of perishable food, and energy efficiency incentives, up to 150%, for upgrades to systems that are more energy, water efficient or environmentally friendly.

To find out more about protecting your home equipment and appliances against breakdown, speak to your insurance broker or contact us

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About Home Systems Protection and Service Line coverage 



© The Boiler Inspection and Insurance Company of Canada. All rights reserved. This article is for informational purposes only. All recommendations are general guidelines and are not intended to be exhaustive or complete, nor are they designed to replace information or instructions from the manufacturer of your equipment. Contact your equipment service representative or manufacturer with specific questions. Under no circumstances shall BI&I or any party involved in creating or delivering this article be liable for any loss or damage that results from the use of the information or images contained in or linked to in this article.

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