Is recall damage covered by insurance?

There are two types of recall damage. Recall damage can happen when you are the manufacturer and you have a defective product. If you have purchased this add-on to your policy then the costs of the recall will be covered to the amount you have chosen. There could even be some payment for the loss of income. An example of this type of insurance is that Maytag could have this type of coverage in place for the heating coil on one of their dishwashers.

The other type of recall damage is when you have purchased a product that turns out to be defective. The use of that product then leads to damages. An example is if you have purchased a dishwasher listed on a recall list. If I use my Maytag then there is a danger of fire.

It has been weeks since they said the replacement part was being sent to me so the repair can be done. What happens if I use the dishwasher and there is a fire?

Your insurance will step up to cover the resulting damage from the fire. You are going to be talking to Maytag though about getting the dishwasher replaced. Your insurance coverage is not for the actual item that created the claim but for the result of that action.

If you are frustrated enough to take the chance then I would put the manufacturer, Maytag, on notice. Let them know that you cannot continue to wait for them to make things right and demand the service that you should be receiving. Sometimes the squeaky wheel is the one that gets the grease.

Insurance advice

Your home and renter insurance does cover errors made that result in damages. For the widest coverage you need to talk to your agent or broker. Take control of your insurance. Ask questions and get the answers you need to make the correct decisions.

Consumer product safety

If you have a concern about a product then check out this website from the Canadian government for recalls.

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