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Equipment Breakdown Coverage: Details, Cost & Claim Examples

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When you have an existing homeowners insurance policy, there are endorsements that can be added to provide additional coverage. If you have equipment breakdown coverage on your policy, this will protect your appliances that are affected by electrical or mechanical issues. If you have a washing machine, dryer, dishwasher, stove, and other similar appliances, it is a great idea to look into adding this endorsement to your homeowners policy. Being protected from these damages can save you a lot of time and allow you to get quick repairs done in case a claim is filed.

Equipment breakdown coverage details

When you take a look at each room in your home, you will see why having equipment breakdown coverage is helpful. There are many different appliances and systems that create a functional space. Your HVAC system is one of the most important since it regulates the temperature in your home. If it breaks or fails to work properly, the coverage will kick in. This also applies to boilers, generators, water heaters, and electrical panels, all of which are crucial components.

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Any appliances you have will also be covered. Equipment breakdown protects your kitchen, laundry room, home gym, and even jacuzzi setup. It is useful to have the coverage in place because there are many instances when an appliance will fail or break. Instead of having to go without it, you can simply file a claim and let the coverage pay for any repairs or replacements. The coverage is typically set up by a dollar amount. People often add $50,000 of equipment breakdown coverage to protect their appliances and systems, but this amount can be negotiated with your agent.

Average cost of equipment breakdown coverage

The cost of the equipment breakdown endorsement is low, so getting it is highly recommended. You can expect to pay an additional $25 to $50 a year depending on how much coverage you get. This will be added to your monthly homeowners insurance payment if you pay in installments. The only additional cost to keep in mind is the deductible you must pay if you need to file a claim. This is also a factor that can be negotiated with your agent and can affect the monthly premium you pay.

There are options when it comes to the deductible you choose, just like most insurance policies. The standard two are $250 and $500 for equipment breakdown coverage. Once you file a claim, you will pay your deductible and then be reimbursed by the insurer for the rest of the cost that remains. This can cover temporary repairs you have made to an appliance, the cost of getting an emergency repair, the amount of spoilage that occurred if your fridge went out, and any additional living expenses if you have to relocate for a short period of time.

Equipment breakdown endorsement doesn’t cost much and provides coverage for kitchen appliances like your stove and dishwasher.

Equipment breakdown claim examples

Since there are so many working systems that keep your home safe and comfortable, a lot can happen when one stops working properly. In case your fridge goes out and all of the food inside it goes bad, you will have coverage for both the cost of food spoilage and the cost to repair or replace your fridge when you have equipment breakdown coverage. This will help alleviate the burden of an already stressful situation, and it is something you would have to pay out of pocket if you did not have the coverage. You would also be covered if your shower broke and you had to stay in a hotel while it was being repaired. Equipment breakdown coverage takes these situations into account and will often reimburse you for all inconveniences.

Another example would be if a power surge caused a big electrical outage. Upon regaining power, you might realize your backup generator was damaged and your appliances that were on during the time of the surge are in need of repairs. Without equipment breakdown coverage, you would be looking at many costly services that would be a tough burden to face. After paying your deductible, you would not have to worry. The insurance would cover the cost of this instance and compensate you so you can get your house back to functional.

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Equipment breakdown coverage vs. home warranty

You might be wondering if you need equipment breakdown coverage if you already have a home warranty in place. The two are separate, and only the equipment breakdown is considered insurance. A home warranty is provided by a warranty company and is typically more expensive than this endorsement. You can expect to pay hundreds, or even thousands, of dollars per year to keep a home warranty. Another factor to consider is the home warranty will only cover specific appliances listed, so might change over time if you get new appliances. Equipment breakdown coverage is good for all appliances and systems in your home at any time.

A home warranty is usually only good for one year at a time. You will sign a contract and accept that the coverage only extends for this specific period of time. When you have the equipment breakdown endorsement, your coverage will be active as long as your homeowners policy is active. It is a much broader form of coverage that leaves little room for loopholes. With its affordability, it is easy to see why many choose to get equipment breakdown coverage over a home warranty.

Washing machines and dryers are covered by equipment breakdown coverage

Equipment breakdown coverage is a very useful endorsement that is very cost-effective. With the coverage in place, you will have confidence that your home is thoroughly protected in case any appliance or system breaks. This can happen unexpectedly, so it is a good idea to put the coverage in place ahead of time so you are not faced with an expensive problem and an inconvenience in your lifestyle. The equipment breakdown endorsement is very useful and can be added to any homeowners insurance policy. To see what your options are, you can consult with your agent to set your desired coverage limits and select a deductible you feel comfortable with.

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Kristen Nadel has worked as an insurance agent for 4 years and has an extensive background in writing homeowners insurance content. She is also a published author residing in Oklahoma. Her creative spirit and tenacity for excellence allow her to stay inspired. Writing is more than just a task to her — it is a lifelong passion.
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