Your Home Has More Technology Than Ever
Modern homes depend on heating and cooling systems, refrigerators, electrical systems, washers and dryers, water heaters, home-security equipment, smart-home technology, and other devices. Standard homeowners insurance may cover equipment damaged by certain covered events, but it may not cover every mechanical or electrical breakdown.
What Is Equipment Breakdown Coverage?
Equipment breakdown coverage is generally an optional homeowners insurance endorsement that provides additional protection for certain household equipment and systems after a covered mechanical, electrical, or pressure-system breakdown. Exact equipment and causes covered vary by policy.
What Types of Equipment May Be Covered?
Depending on the policy, eligible equipment may include certain heating and air-conditioning systems, boilers, water heaters, refrigerators, freezers, washers and dryers, electrical systems, home-security systems, well pumps, pool equipment, kitchen appliances, smart-home equipment, and other household systems.
Equipment Breakdown Example
Imagine an electrical event damages an important component inside your home’s central air-conditioning system. If the event meets the endorsement’s definition of a covered breakdown, equipment breakdown coverage may help pay for repair or replacement, subject to the deductible, limits, and policy conditions.
Is Equipment Breakdown Coverage a Home Warranty?
No. A home warranty is generally a service contract. Equipment breakdown coverage is part of an insurance policy and responds only when circumstances meet the policy’s definition of a covered breakdown. Terms, deductibles, covered property, exclusions, and claims procedures can vary widely.
Does Equipment Breakdown Cover Normal Wear and Tear?
Generally, no. Insurance is not designed to replace routine maintenance. Equipment that reaches the end of its useful life, gradual deterioration, corrosion, rust, poor maintenance, and certain other conditions may be excluded.
Why Consider Equipment Breakdown Coverage?
Replacing a major HVAC component, electrical system, appliance, or other sophisticated equipment can create a substantial unexpected expense. As homes incorporate more electronics and computerized components, homeowners may want to understand how their insurance responds to an unexpected covered breakdown.
What Should You Ask Your Insurance Agent?
Ask what equipment is eligible, what constitutes a covered breakdown, what limit and deductible apply, how losses are valued, whether older equipment is eligible, and what exclusions apply.
Have Questions About Equipment Breakdown Coverage?
Oberryman Insurance Agency can help you review your homeowners insurance and determine whether equipment breakdown coverage is included or available.
Call Oberryman Insurance Agency at 703-986-0468 to request a homeowners insurance review or discuss available coverage options.
Insurance coverage, eligibility, limits, deductibles, exclusions, endorsements, and availability vary by insurance company, policy, property, state, and individual circumstances. This article is provided for general informational purposes and does not modify or replace the terms of an insurance policy. Please review your policy and contact a licensed insurance professional regarding your specific coverage needs. Equipment breakdown coverage is not a maintenance plan or home warranty and generally does not cover ordinary wear and tear.
