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What Does Equipment Breakdown Coverage Cover?
If a power surge wrecks the appliances in your house, does your homeowners policy pay? Usually no — unless you have Equipment Breakdown coverage. Here's what it covers and what it doesn't.
A lot! Good rule of thumb: if it uses electrical power, it's most likely considered covered property with respect to the equipment breakdown endorsement:
- Washers / Dryers
- Dishwashers
- Refrigerators / Freezers
- Microwaves
- Ovens
- Well Water Pumps
- Televisions
- Swimming Pool Equipment
What it doesn't cover
This coverage can save you thousands of dollars when it comes to broken-down houseware systems. But this endorsement excludes everyday wear and tear — so things like mold, cracking, shrinking and expanding, corrosion, and pest damage.
How important is coverage for internal breakdowns to your home appliances?
When any essential home appliance seizes, cracks, or shorts out, it could be a covered loss. Homeowners are responsible to repair or replace the unit unless they have Equipment Breakdown coverage. This coverage closes the gap with a simple, affordable solution that protects expensive pieces of equipment from an equipment breakdown loss. For example, if a power surge damages multiple pieces of equipment in your home, Equipment Breakdown coverage would cover the repair or replacement costs. Without this coverage, the homeowner would be responsible for these expenses.
How does this coverage differ from a Home Warranty?
Home warranties are expensive and restricting. Equipment Breakdown coverage is affordable, straightforward, and isn't limited to specific types of equipment.