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Equipment Breakdown Insurance in Texas

Texas requires each boiler operated in the state, unless a statutory exemption applies, to be registered with TDLR and to hold a current certificate of operation. Power boilers, unfired steam boilers, and steam collection or liberation drums of process steam generators need an annual certificate inspection and an annual external inspection. Steam and hot-water heating boilers are inspected every two years. Hot-water supply boilers and covered potable water heaters are inspected every three years. The 2025 amendments on exemptions and inspection reports took effect September 1, 2025. 1,2

What Is Equipment Breakdown?

Equipment-breakdown coverage can help repair covered machinery or building equipment after a mechanical or electrical failure. It fits businesses that depend on equipment to operate; check whether lost income, spoilage and utility failures are included. Read the national Equipment breakdown guide.

Texas Requirements

RequirementDetails
Registration and certificateEach nonexempt boiler must be registered and hold a current certificate of operation. Post it on or near the boiler. 1,2
Power and unfired steam boilersAnnual certificate inspection and annual external inspection. 1
Heating boilersCertificate inspection every two years for steam heating and hot-water heating boilers. 1
Hot-water supply and potable heatersCertificate inspection every three years when the heater is a boiler under the chapter. 1

What to Watch for in Texas

  • Ordinary Pressure Vessels Are Outside the Chapter

    The chapter exempts pressure vessels and process steam generators, other than steam collection or liberation drums of process steam generators. Heating boilers used only to heat a residential building with accommodations for not more than four families are exempt from the inspection and certificate sections cited in § 755.022. A breakdown policy may still cover exempt tanks and small residential boilers. 1

  • Heater Thresholds Decide Whether the Object Is a Boiler

    A hot-water supply boiler designed for 160 psi or 250°F is in the definition if heat input exceeds 200,000 Btu per hour, water temperature exceeds 210°F, or nominal capacity exceeds 120 gallons. A potable water heater at or below 160 psi and 210°F is in the chapter if heat input exceeds 200,000 Btu per hour or nominal capacity exceeds 120 gallons. Heaters under all of those limits are not boilers under this chapter. 1

  • The Inspection Agency Files Within Ten Days

    An authorized inspector must be commissioned by the executive director and continuously employed by an inspection agency. Not later than the 10th day after a certificate inspection, the agency files a report. A boiler inspected by an authorized inspector is exempt from other inspections and inspection fees under the chapter, other than a joint inspection. Section 755.027's report timing was amended effective September 1, 2025. 1,3

  • A Sixty-Month Internal Interval Is an Extension

    With approval of the executive director and the inspection agency that has jurisdiction, the interval between internal inspections of a power boiler may be extended to a total of 60 months, and longer stated limits apply to unfired steam boilers and steam collection or liberation drums, only with continuous water treatment, satisfactory inspections, and the listed records. That extension is not the default certificate interval. 1

Who Regulates Insurance in Texas

Texas Department of Insurance

TDI licenses agents and insurers, reviews company rate filings, and investigates complaints against insurance companies and people it regulates. Its complaint page states limits on what it can resolve, including disputes outside its regulatory authority. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 4.85% of gross premium plus 0.04% SLTX stamping fee When Texas is the insured’s home state, the state tax is 4.85% of gross premium; absent a compact allocation agreement, a multistate policy can be taxed on its entire premium. Policies effective on or after Jan. 1, 2024 also carry a 0.04% stamping fee; SLTX invoices the broker and says the insured pays it, and the surplus-lines insurer is not covered by the Texas guaranty association. 7,8,9

Surplus Lines Stamping Office of Texas

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Texas

  1. Is the object a boiler that must be registered, or a pressure vessel the chapter exempts?
  2. Which certificate interval applies: annual, biennial, or triennial?
  3. If an inspection agency has jurisdiction, will it file the report within 10 days, and is any internal interval extended in writing?
  4. What repair and lost-income terms apply to exempt pressure vessels that will not have a TDLR certificate?

Equipment Breakdown in Texas: FAQ

Does Texas require a boiler certificate for an ordinary pressure vessel? 1

No. Health and Safety Code Chapter 755 exempts pressure vessels and process steam generators, other than steam collection or liberation drums of process steam generators. Boilers still need registration and a current certificate of operation unless another exemption applies. 1

How often is a hot-water heating boiler inspected? 1

Steam heating boilers and hot-water heating boilers receive a certificate inspection every two years. Hot-water supply boilers and potable water heaters that fall inside the chapter are inspected every three years. 1

Equipment Breakdown in Other States

Other Coverage in Texas

Sources

  1. Health and Safety Code Chapter 755, Boilers. Texas Legislature; §§ 755.001, 755.021, 755.022, 755.024 through 755.029; 2025 amendments effective September 1, 2025. Accessed 2026-09-29.
  2. Boiler Safety. Texas Department of Licensing and Regulation; Heating, power, unfired steam, process steam generators, and nuclear boilers must be registered and inspected. Accessed 2026-09-29.
  3. Boiler Safety Frequently Asked Questions. Texas Department of Licensing and Regulation; Authorized inspectors employed by inspection agencies; certificates of operation. Accessed 2026-09-29.
  4. texas insurance regulator. State insurance regulator; TDI regulator page outlines licensing, financial oversight, compliance/enforcement, and rate review. Accessed 2026-09-28.
  5. How to Find a Licensed Insurance Agent or Adjuster. State insurance regulator; TDI says search by agent name or license number and links to the state license search. Accessed 2026-09-28.
  6. Get Help with an Insurance Complaint. State insurance regulator; Direct complaint page explains covered entities, exclusions and online filing; Help Line 800-252-3439. Accessed 2026-09-28.
  7. Texas Insurance Code §§225.002–225.004. Texas Legislature; §225.002 limits chapter to Texas-home-state insured; §225.004(a) 4.85%; (a-1) NRRA home-state limitation; (c) entire premium where Texas is home state and no compact agreement. Accessed 2026-09-28.
  8. Stamping Fees & Taxes. Surplus Lines Stamping Office of Texas; Current policy-date table lists 0.04% for inception 1/1/2024 and after; stamping fee invoices go to brokers; site says fee is paid by insured. Accessed 2026-09-28.
  9. Texas Surplus Lines Companies. Texas Department of Insurance; TDI says surplus-lines insurers are not licensed in Texas and its guaranty association member; eligibility/disclaimer and broker financial-responsibility details. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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