Open Forum

Boiler Inspection Requirements Insurance Route???

  • 1.  Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    Does everyone's state require that the laundromat's boiler is covered by insurance?  If they do ... the insurance company inspects.  Is this something states allow to be bypassed on a laundromat's insurance policy?  Does this coverage specifically have to be asked for?  My boilers are low pressure 150K btu ... I really don't care too much about covering them as I have spare back up boilers.  Also there are multiple safety relief valves so it is in my mind no chance of a dangerous boiler vessel explosion.

    I am leaning towards making sure that boilers are mentioned in the policy somewhere because I have been told that the state's boiler inspection still would then have to charge into the hundreds of dollars to inspect the boilers themselves vs an insurance company's inspector.

    Any thoughts on this?   I acknowledge each state is a bit different with their specific definition of a boiler.  The threshold here is 150K BTU which makes inspection one way or another a requirement for us.


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    Michael Walsh www.kingkoin.com
    Store Owner/ Employee
    King Koin Laundry, Car n Dog Wash
    Bismarck ND
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  • 2.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    If your heater (or heaters) is less that 199,999 BTU's it is not a boiler! Therefore not subject to all that B.S.!

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    Curt Harrington

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  • 3.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    Curt,

    Apparently there is wiggle room for some states for them to include 150K BTU as being a boiler.  Therefor subject every two years to an inspection.

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    Michael Walsh
    Store Owner/ Employee
    King Koin Laundry, Car n Dog Wash
    Bismarck ND
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  • 4.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    Edited by Curt Harrington 27 days ago
    I ran into something like this a number of years ago. I wanted to install a larger transformer for a small load so it would run cooler.  The inspector said that  the  transformer had to have a larger breaker despite the fact it was being under-loaded. This would have of course involved larger wire Etc.Etc. After speaking to the manufacture they had no problem using a smaller nameplate on the transformer as it was completely and totally safe. Perhaps this could apply in this situation?
    No doubt the manufacture of that heater is aware of that issue for your state and likely has a replacement orifice so it will comply. You can always go smaller without affecting safety.
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    Curt Harrington

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  • 5.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    Insurance Savvy People,

    I will have to make up my mind on the add'l coverage.  What confused me is the fact that the new insurance company described boiler insurance differently that was described for me in the past ... a kind of a "simplified wording" thing.  The standard in the insurance industry now it is more likely to be just called "Equipment Breakdown Coverage"  I am leaning towards making sure that the overall policy includes that "breakdown" language.

    Insurance whiz's out there .... any comments on "equipment breakdown coverage" & what the value of it can be for a laundromat???

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    Michael Walsh
    Store Owner/ Employee
    King Koin Laundry, Car n Dog Wash
    Bismarck ND
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  • 6.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 25 days ago
    Hi Michael,

    If you have boilers I recommend you have that coverage included in your policy.  Say for example the boiler explodes and causes property damage and lost of income, equipment breakdown will provide coverage for that.

    There are insurance carriers that will write a mono-line equipment breakdown policy if it cannot be added to your current policy.

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    Jason Rehor
    Account Executive
    CLA Insurance
    Rolling Meadows, IL
    jrehor@associated.cc
    847-427-3524
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  • 7.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 25 days ago
    Jason,

    So if there is a page on the policy that specifically says "equipment breakdown coverage" ... I don't need to worry about it not covering all the boilers in the building?

    I am assuming that once the state's boiler inspection office gets the name of the "new underwriter" that replaced the old underwriter who would send out their own inspector .... the state office will let them know when their every 2 years inspection is required &/or due.  That is based on a recorded phone call I had with the chief inspector for the State of North Dakota.

    I agree I should continue the same boiler coverage that I had before & not try to drop the boiler coverage.  The issue I have is that the agent putting together the new coverage ... tells me "equipment breakdown coverage" absolutely covers boilers even though it does not specifically say on the page "boilers"???

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    Michael Walsh www.kingkoin.com
    Store Owner/ Employee
    King Koin Laundry, Car n Dog Wash
    Bismarck ND
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  • 8.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 7 days ago
    Hi Michael,

    Equipment Breakdown coverage used to be called boiler and machinery coverage.  It was changed to the name Equipment Breakdown to offer broader coverage than just Boiler and Machinery Insurance.  This is just a little background to help you understand why it is called that.

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    Jason Rehor
    Account Executive
    CLA Insurance
    Rolling Meadows, IL
    jrehor@associated.cc
    847-427-3524
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  • 9.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 7 days ago
    Thanks Jason for clearing that up,

    The American Family Agent that I switched from to a new underwriter told me that the policy should specifically state boiler &/or watch for exceptions within the policy that specifically says "does not include boilers".  I am still waiting to see the complete policy but have already prepaid for it.  I am basically trusting the agent to be accurate!

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    Michael Walsh www.kingkoin.com
    Store Owner/ Employee
    King Koin Laundry, Car n Dog Wash
    Bismarck ND
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  • 10.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 7 days ago
    If it is specifically excluded you can get insurance for it on a separate policy.


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    Jason Rehor
    Account Executive
    CLA Insurance
    Rolling Meadows, IL
    jrehor@associated.cc
    847-427-3524
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  • 11.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 7 days ago
    Hartford Steam Boiler company will insure your boiler on its own policy and they pay for the inspections.
    Its not expensive because Boiler's that are inspected every year rarely explode.

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    Paulie B
    Multiple Mat Owner since 1976
    New York City, NY
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  • 12.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 27 days ago
    .    In SoCal the water heater may not belong to the Laundromat but to the Landlord. I know some of you reside in states that are affordable for building purchase. In SoCal, I estimate 98% of Laundromat owners lease their space.
         The terms of the lease will determine ownership of the heaters, swamp coolers and other fixtures. If you can't remove the items at the expiration of the lease, you don't own them. This follows the common law concept of once an item has been attached to real property, it becomes part of the property and therefore belongs to the property owner.  In case of a fire, the Landlord's insurance would replace the heater under most lease agreements I see.
         You may have to purchase, maintain, replace and repair the item, but you don't own it. It's interesting to note that we don't have boiler or heater inspections except when the heater is first installed or later replaced with a building permit.
         Curt is correct, at least in my area, that a boiler is 200,000 BTUs and above.  Your heater would not be considered a boiler. Maybe you should check with inspecting agency to see if they are enforcing an antiquated regulation when Laundromats often had a million or more water heaters or boilers.

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    Larry Larsen
    Laundromat123.com
    Anaheim, CA
    Distributor - Insurance - Consulting
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  • 13.  RE: Boiler Inspection Requirements Insurance Route???

    Posted 26 days ago
    Any heating pressure vessel that has an ASME H stamp on it is technically a boiler. However identical equipment may or may not have the stamp. Look at the data plate on the equipment. The state of Montana requires any boiler to be state inspected yearly and a license paid for the privilege. Also I have a state low pressure boiler license (personal) that I have to hang on the wall.

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    Jake Witham
    Store Owner/ Employee
    SpinFresh Coin Laundry
    Billings MT
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