You own a home and consequently have a homeowners insurance policy. This is the minimum amount of coverage you should have for this important asset.
Equipment breakdown coverage is an additional, inexpensive endorsement that is meant to cover household appliances that stop working in a case of electrical or mechanical failure. A standard homeowners policy will cover appliances if they are lost or damaged in a bad storm or fire, but there is little to be done outside of these instances.
Equipment breakdown coverage functions similarly to a home warranty, covering everything from your furnace to your fridge to your air conditioner if they break down. The difference is that you can add the equipment breakdown coverage to your home insurance policy as an endorsement at a minimal fee; a home warranty is typically a separate product that you buy through a separate entity.
These are some examples of covered equipment:
- Air conditioning systems
- Computers and peripheral equipment
- Electrical doors and locks
- Equipment related to hobbies, woodworking, restoring cars, etc.
- Heating equipment
- High efficiency lighting systems
- Home entertainment equipment
- Home gym equipment
- Jacuzzis and related equipment
- Kitchen appliances
- Sauna equipment
- Security systems
- Swimming pool equipment
- Telephone systems
- Washers and dryers
An equipment breakdown coverage endorsement will typically reimburse you for physical loss or damage resulting from:
- Mechanical breakdown
- Accidental breakdown caused by improper installation
- An artificial electrical current, like electric arcing
- Pressure systems breakdown
However, this endorsement will not cover for appliance replacement or repairs if the damage or loss is caused by wear and tear, including rust or corrosion, deterioration, any defects, mold, cracking, pest damage or shrinking or expanding.
This extra coverage is something we encourage all homeowners to consider adding to their existing homeowners policy for pennies a day. You can think of it as a well-deserved homeowner upgrade that will like payoff in the end.
For more information or to add this coverage to your current homeowners policy, get in touch with your R.C. Keller & Company team member today at 847-907-4520.