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Equipment Breakdown Coverage

What Is Equipment Breakdown Coverage?

Homes are becoming outfitted with new and advanced equipment, which is great for convenience, ease and keeping homes safer. But this cutting-edge technology comes at a cost when replacing certain equipment in your home gets pricey. That's why it's important to know about your option to add equipment breakdown coverage.

Equipment breakdown coverage is added coverage that offers protection should your appliances, home systems or smart home devices be damaged due to mechanical, electrical or pressure systems breakdown. Let's take a closer look at this coverage.

Appliance failures in percentage

What Does Equipment Breakdown Coverage Cost?

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$30/year
For Homeowners & Manufactured Homeowners

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$20/year
For Condo Owners & Condo Renters

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What Does Equipment Breakdown Coverage Cover?

Did you know that according to consumer reports, around 25 percent of new appliances fail within their first five years? And as homes increase in size with more complicated and expensive equipment, the need for this breakdown coverage will increase. Having this coverage can protect you from paying the expensive repair or replacement costs that accompany a breakdown of important pieces of equipment in your home, including:

  • Refrigerators, ovens and stoves
  • Washers and dryers
  • Heating and cooling units, including furnaces and water heaters
  • Home security systems
  • Electrical systems
  • Computers
  • Well pumps
  • Swimming pool equipment
  • Garden tractors
Interactive home graphic

How It Works: See Equipment Breakdown Coverage in Action

See how equipment breakdown coverage protects your home with our interactive home experience. See what common breakdown repairs cost and decide if this optional coverage is right for you and your home.

How It Works: See Equipment Breakdown Coverage in Action

See how equipment breakdown coverage protects your home with our interactive home experience. See what common breakdown repairs cost and decide if this optional coverage is right for you and your home.

How Important Is Equipment Breakdown Coverage?

You rely on equipment like appliances, heating and cooling units, and electrical systems to keep your home running smoothly. And if equipment breaks down, your standard home insurance policy won’t cover the cost to replace it — leaving you to pay out of pocket. But having this coverage will financially protect you from those unexpected expenses.

Let’s say electrical arcing damaged your electrical service panel. Your boiler control, television, stove and microwave are all severely damaged. The damage is beyond repair, and all the affected items need to be replaced. Your total for the equipment damage comes to $ 8,500. None of this is covered by your standard home insurance policy, and you’d have to pay that cost out of pocket. However, adding equipment breakdown coverage would help cover the costs to repair or replace the damages up to your policy limit after you pay the $500 deductible.

What Is Not Covered by Equipment Breakdown Insurance?

Equipment breakdown insurance can come to the rescue in many instances, but it won’t help you if your equipment has simply worn out from normal wear and tear. That’s why it’s so important to maintain your equipment by performing regular upkeep.

What’s wear and tear? Wear and tear is damage from ordinary use that typically occurs over time, with the performance slowly declining. Mechanical breakdown, on the other hand, occurs suddenly.

An example of wear and tear would be an air conditioning unit that’s still working but isn’t cooling the home as effectively as it once did. Here’s a case of wear and tear which occurred over a long period of time rather than suddenly. And since the mechanicals of the AC are still working — just not as effectively — equipment breakdown insurance won’t cover the cost to repair or replace the damage. Nor will your standard home insurance policy.

Equipment
Component Affected
Condition
Result
Swimming Pool Pump
Pump Seal
Leaking seal
Excessive use of water
Air Conditioning Unit
Condenser Coil
Pinhole leaks in coil
Loss of refrigerant
Electrical Panel
Circuit Breaker
Worn contacts
Loss of electricity to electrical outlets
Dishwasher
Pump
Worn pump seal
Leaking water
Emergency Generator
Radiator
Leaking radiator
Engine overheat and shutdown
Water Heater
Storage Tank
Excessive corrosion/rust

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Washer
Holding Tank
Dried out seal
Leaking water
Cast-iron Boiler
Burner Assembly
Worn electrode in burner
Lack of comfort heat
Dryer
Drum
Worn belt
Drum will not rotate
Oven
Temperature Sensor
Faulty sensor
Oven will not heat to temperature
Television
Tube
Green images
Worn picture tube
Garbage Disposal
Grinding Teeth
Worn teeth
Clogged drain


Protect Your Appliances and Home Equipment

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*This coverage is not available in MN at this time.
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