Equipment Breakdown coverage is usually an add-on endorsement to a homeowners or Business Policy which affords you additional protection for household systems and appliances if they’re damaged due to a mechanical or electrical failure. These systems might include your HVAC unit, Water Heater possibly even your personal computer. As these types of systems become more complex and expensive it may be worth insuring against this additional peril.
If these systems or appliances are damaged due to a typically covered peril under your home policy like Fire, or Windstorm your policy will cover the damage however sometimes these systems become damaged due to electrical failures both on premise and off. Typical breakdowns could consist of mechanical breakdowns like a ruptured water heater, power surges, failures due to improper installation or pressure system breakdowns.
Some items will not be covered. Generally if the failure is due to normal wear-and-tear, molding or pest related damage this coverage will not apply.
Equipment breakdown coverage protects many different appliances and devices in your home when they break down because of a covered incident.
Here are some examples of covered equipment or systems:
- Heating and air conditioning systems
- Home security systems
- Refrigerators
- Freezers
- Washers and dryers
- Ovens and microwaves
- Water heaters or tankless boilers
- Computers and computer equipment
- Back-up generators
- Sump pumps
- Jacuzzis or Hottubs (external or internal)
- Boilers and furnaces
- Electrical power panels
Equipment Breakdown endorsements read very differently across different companies so make sure to discuss this with your agent. Adding breakdown coverage is generally not expensive. Its also important to remember your normal home deductible will apply. Always remember many small claims can jeopardize your renewals with certain companies. Though, usually these breakdowns occur in tandem with larger events and losses.
