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