Risk Solutions

HSB WHISTLESTOP

For Agents & Brokers

Condos and apartments face breakdown exposures

Data shows electrical damage top cause of breakdowns

HSB claims analysis shows that unexpected power surges that can run through a building's systems, known as a line disturbance, are the top cause of equipment breakdown for condominiums and apartment buildings.

Power fluctuations affect nearly all equipment

Ever seen the lights flicker? That's a line disturbance. It's the result of power fluctuating, from lightning, brownouts, or power load problems with a utility company. Equipment, particularly equipment that uses microelectronics, can be very sensitive to these unexpected swings in power. Just a single line disturbance can be enough to trigger a costly breakdown.

Whole systems can be affected

Take, for example, this recent claim: A single power surge at a condo complex resulted in breakdowns of the building’s elevators, air conditioning system, fire alarms, and lawn sprinkler systems. The loss totaled $51,000, none of it covered by a standard property policy. Fortunately, the association's equipment breakdown policy paid for the repairs.

Top-five condo and apartment claims

Potentially expensive equipment risks exist throughout condo and apartment buildings. What are the costliest? According to HSB insurance data, the top five equipment breakdown sources ranked by their approximate average claims costs are:

  • Climate control equipment
  • Electrical distribution equipment
  • Elevators, motors and controls
  • Hot water heaters
  • And fire detection and suppression systems

Close the coverage gap with equipment breakdown insurance

Expensive breakdowns can happen to just about any equipment in a condo or apartment building. But it can be covered with equipment breakdown insurance. Learn how HSB TechAdvantage™ can protect your condo and apartment building clients with our equipment breakdown coverage.

Condos and apartments face breakdown exposures