Day: April 22, 2020

equipment breakdown

What is Equipment Breakdown Coverage And Why You Should Consider Getting Some

What is Equipment Breakdown Coverage And Why You Should Consider Getting Some

equipment breakdown

You own a home and consequently have a corresponding homeowners insurance policy. Well done and also this is the minimum amount of coverage you should have for this important asset. 

In a previous post we spoke about the importance of having coverage for the utility service lines leading into and out of your home.  Similarly, equipment breakdown coverage is an additional, inexpensive endorsement that is meant to cover household appliances that stop working in case of electrical or mechanical failure. While your regular homeowners policy will cover appliances if they are lost or damaged in a bad storm or fire, there is little to be done outside of these instances. 

Equipment breakdown coverage functions similarly to a home warranty, covering everything from furnaces to refrigerators to air conditioners if they break down. The difference is that you can add equipment breakdown coverage to your home insurance policy as an endorsement at a nominal fee; a home warranty is typically a separate product that you buy through a separate entity.

Here are some examples of covered equipment:

  • Heating and air conditioning systems
  • Computers and computer equipment; data restoration
  • Refrigerators and freezers
  • Food spoilage
  • Washers and dryers
  • Ovens and microwaves
  • Boilers and furnaces
  • Water heaters
  • Home entertainment systems
  • Sump pumps
  • Some home gym equipment like a treadmill
  • Jacuzzis, hot tubs
  • Electrical power panels
  • Home security systems

Your equipment breakdown coverage endorsement will typically reimburse you for physical loss or damage resulting from:

  • Mechanical breakdown
  • Accidental breakdown caused by improper installation
  • An artificial electrical current, like electric arcing
  • Pressure systems breakdown

However, it will not cover for appliance replacement or repairs if the damage or loss is caused by wear and tear, including rust or corrosion, deterioration, any defects, mold, cracking, shrinking or expanding, or pest damage. 

For pennies a day this endorsement is something we encourage all homeowners to consider adding their existing policy. Think of it as a well-deserved homeowner upgrade that will likely pay off in the end. 

For more information or to add this coverage to your existing homeowners policy, get in touch with your Snyder Insurance representative today. 

Service Line Coverage

Service Line Coverage — The Coverage You May Not Have Heard About That You Absolutely Need.

The Coverage You May Not Have Heard About That You Absolutely Need.

Service Line Coverage

Picture this: It’s a Sunday afternoon and suddenly you’ve lost water pressure. There’s a trickle of water coming out of your bathroom faucet and there’s no chance the last load of weekend washing is going to get done. You’re not sure what the issue is. Sure, it’s a pain to deal with but you’re not worried because you have a homeowners insurance policy. 

While losing water pressure doesn’t regularly happen it is fairly common to think that a homeowners policy will cover any homeowner issues that may arise. However, this would be incorrect. While a homeowner’s policy covers any issues that arise within your home there are plenty of issues that can occur outside your home and still affect everyday living.

Let’s take the situation described above. A loss of water could be an issue with the pipes leading into your home: those on your property but exterior to your home. It  could be from an old growth tree root that has penetrated your water pipe. Once it’s on your property it’s not the city’s issue it’s yours and a normal homeowners policy is not going to cover the cost as it’s outside the home. 

According to one estimate, the average cost of installing/replacing a water service line can be over $2,500.

Enter Service Line Coverage. Underground service lines are exterior pipes and wiring that provide services to a home. These lines can be damaged by causes not covered by the standard homeowners insurance policy. Coverage can often be purchased for a nominal annual fee that can add up to thousands of dollars in repair savings that would otherwise come out of your pocket. 

Coverage could include:

  • Underground service line repair or replacement costs
  • Excavation costs required to repair or replace the covered service line 
  • Damaged trees, shrubs, plants, lawns, walkways, and driveways
  • Additional living expenses while repairs are made

See below for the types of underground service lines covered and the most typical causes of failure. 

Types of underground service lines covered:

  • Natural gas
  • Steam 
  • Waste disposal 
  • Water 
  • Drainage 
  • Compressed air 
  • Electrical
  • Heating 
  • Communications 

Typical causes of an underground service line failure:

  • Wear and tear or deterioration 
  • Rust or other corrosion
  • Mechanical breakdown 
  • Damage from weight of vehicles, equipment, animals, or people
  • Artificially-generated electrical current 
  • Freezing or frost damage
  • Vermin, insects, rodents, or other animals
  • Collapse
  • Tree root or other plant root invasion 

For more information or to add service line coverage to your existing homeowners policy, get in touch with your Snyder Insurance representative today!

To learn more about home insurance and how to protect your assets, please click here.