Many homes today incorporate advanced technology electronics and other equipment that is not covered by your standard homeowner insurance policy, yet a loss to one of these items can become a significant expense. Is there anything you can do to adequately insure these exposures? The answer could be found with Equipment Breakdown coverage! Does your home policy include Equipment Breakdown coverage? If not, it should!
Equipment Breakdown extends coverage not included in the standard homeowner policy to your important home systems and personal property due to a covered loss by mechanical or electrical breakdown. This can include, but is not limited to, your washer and dryer, water heater, air conditioner, entertainment systems, and computers.
Coverage can in some cases be comparable to a home warranty; however, one of the main differences is wear and tear. Equipment breakdown coverage does not apply to wear and tear. Officially, wear and tear is the reduction, deterioration, or depreciation in value of property due to normal use. This is commonly excluded from most homeowner policies and equipment breakdown is no different in that sense. Your equipment may be operating and there are no broken parts, but it’s not performing as well as expected- this is a common instance of wear and tear. A common example of this is your A/C is not producing enough cold air- the unit is working, just not optimally.
Conversely, Equipment Breakdown means that there is an actual breakdown or mechanical failure that causes the item to no longer work or run. There are three perils that equipment breakdown covers:
- Electronic or electrical breakdown
- Mechanical breakdown
- Rupture, bursting, bulging, implosion, or steam explosion
These three items are not typically covered in the standard homeowner policy, but they can all cause significant angst should they occur. There are also options to upgrade to Green Certified Equipment replacement choices.
While premiums and coverage limits may vary depending on your insurance company, Equipment Breakdown can be an affordable alternative to costly home warranty plans. In some cases, claims you file won’t increase your rates. Call your independent agent today to check into this optimal choice for your peace of mind!
The coverages here are described in the most general terms, and are subject to the actual policy conditions and exclusions. For actual coverage wording, conditions, and exclusions, refer to the policy or contact your agent.