Equipment Breakdown Coverage: What You Need to Know

You wouldn’t want to be without a working air conditioner or refrigerator on a sweltering summer day — or without a furnace or water heater in the middle of winter.

Typical home insurance policies cover damages to your appliances, home equipment and other personal belongings caused by fires, lightning, theft and other named disasters in your policy.

Equipment breakdown coverage covers heating and air conditioning systems, boilers and appliances when they break down due to electrical or mechanical failures.

It’s just one more tool to protect your appliances and home equipment, in addition to other tools like home warranties, manufacturer warranties and the standard coverage provided by your homeowner’s insurance policy.

What is equipment breakdown coverage?

Equipment breakdown coverage is an endorsement to your homeowner’s insurance policy.  In other words, it is added to your homeowner’s policy and provides more coverage than a standard homeowner’s insurance policy.

Some common mechanical and electrical failures that you might face include ruptures or bursts, power surges, short circuits and motor burnouts. It doesn’t cover damage caused by normal wear and tear, rust, mold, or not taking care of your equipment.

What does equipment breakdown insurance cover?

Equipment is a broad term that includes much more than just your appliances and your heating and air conditioning system. A good way to think about it is that, if it draws an electrical current from your home, it’s probably considered equipment. It also helps cover extra charges to speed up repair or replacement of damaged property.

How much does equipment breakdown coverage cost?

You might expect to pay about $25–$50 per year for a standard equipment breakdown coverage plan that provides $100,000 of coverage.

Also remember that you’re responsible for paying your deductible before your insurance company will help you pay to repair or replace your equipment. Equipment breakdown coverage typically includes its own deductible that’s separate from your policy deductible. A common equipment breakdown coverage deductible is $500, regardless of what your policy deductible is.

Is equipment breakdown coverage worth it?

Remember that homeowners insurance covers your appliances and other belongings after certain disasters. If you’re worried about other issues like power surges and motor failures, you might consider equipment breakdown coverage. Additionally, you might consider this form of coverage to protect yourself after your warranties expire.

You probably don’t typically think about your appliances and other equipment when they’re working properly. However, you certainly notice when they’re not working as they should. Make sure that you have enough coverage to protect your air conditioner, water heater, freezer and other essential items in your home. Call your Aitken & Ormond Agent to find out more about adding Equipment Breakdown coverage to your Homeowners policy.

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