As a homeowner, replacing today’s expensive and sophisticated appliances and devices can be costly. Our modern appliances come with fancy bells and whistles and cutting-edge technology comes at a cost when replacing certain equipment in your home. Appliances that break down due to electrical and mechanical failure typically aren’t covered by home insurance, but some insurers give you the option of supplementing that gap in coverage by adding equipment breakdown coverage to your policy for an additional premium. With equipment breakdown coverage, you are more protected against unexpected repairs to or the replacement of those appliances due to electrical, mechanical or pressure systems breakdown.
This type of coverage can help cover the cost of the physical loss or damage resulting from an occurrence such as a power surge, improper installation, a pressure system failure, or a mechanical breakdown. Here are a few examples:
- A power surge in your community damages the fan motor and compressor on your AC unit
- A utility transformer blows on your block damaging your home’s security system control board
- A storm causes a power outage while your laptop is charging. Then a voltage spike damages your computer beyond repair
- A power surge damages your dishwasher, oven, and freezer
- A refrigerator breakdown results in food spoilage
Though it can vary by company, some of the types of equipment commonly protected by this coverage include air conditioning systems, water heaters, security systems, sump pumps, steam boilers, dishwashers, garbage disposals, refrigerators, freezers, ovens, and microwaves, washing machines, dryers, water heaters, home entertainment systems, home gym equipment and computer systems.
Policies are typically clear on what types of breakdowns that they will or won’t cover, so you’ll want to check your homeowner’s policy, so you are not left without coverage. Some of the more common perils that equipment breakdown coverage protects against are motor burnout, power surges, mechanical breakdowns, short circuits, and pressure system breakdowns. If your appliances and devices are damaged due to general wear-and-tear they will not be covered under this endorsement.
Equipment breakdown coverage is usually very affordable, especially when considering the cost of replacing valuable appliances and equipment, which can be some of the most expensive items in your household. As such, any breakdown or failure not covered by your homeowner’s policy can end up costing you a lot of money. Equipment breakdown insurance is an affordable way to avoid unnecessary expenses. This coverage is not the same as a home warranty. A home warranty is a separate product that’s typically sold by a home warranty company, not a property insurance company. Equipment breakdown coverage is simply an upgrade you can choose to add to your homeowner’s insurance policy.
If you have questions about this coverage, please give us a call at Sanger Insurance. The north Texas area is experiencing growth, especially the towns of Sanger and Krum, along with Pilot Point and Aubrey. Neighborhoods of new homes are being constructed with those brand-new appliances installed. Consider adding this endorsement to your current policy and be sure to contact your agent about the specifics.
