Home Insurance Equipment Breakdown Coverage

home insurance equipment breakdown coverage

Understanding equipment breakdown coverage

Under normal circumstances, when a home appliance is damaged due to fire, or natural disaster, the homeowner’s insurance company will cover the losses. However, when your home appliances stop working due to mechanical or electrical reasons, you may need home insurance equipment breakdown coverage to cover the loss.

For those who don’t understand, equipment breakdown coverage is the home warranty that applies to your appliances. Furthermore, it is also considered cheap, with just 25-$50 yearly for coverage up to $50k. This insurance applies to each item you may have, from refrigerators to furniture and entertainment units. This insurance is not typically counted when you get home insurance, and so, you may need to have it as an endorsement, and it is worth it.

If you suffer this kind of problem with your home appliances, you may want to check your home insurance company’s endorsements.


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What Appliances Are Covered in Home Insurance Equipment Breakdown Coverage?

Equipment breakdown coverage can cover a multitude of things, and they include:

  1. Any electrical device that can suffer short circuits due to power issues.
  2. Sometimes, equipment breakdown coverage can cover the food spoilage due to an electrical device.

Although the list seems small, the electrical devices include almost all the things present in your house. But you have to pay an amount of 250-$500 before the company covers the expenses. Once you pay that sum of money, the company typically repays you for the repairs you may have made due to appliance failure. Food spoiled in the refrigerator because it broke down—even extra living expenses caused by specific equipment’s power failure.

This shows that paying just a small amount of 25-$50 can be great if you experience such problems. This sum of money is also insignificant because they cover up to $50,000 of equipment breakdown.

When Does the Company Provide Coverage?

The company will repay you for any physical loss that’s caused by the following reasons.

  1. Equipment breakdown due to short circuit, or result of power cuts.
  2. Repairing appliances due to improper installation.
  3. When a mechanical outbreak happens due to centrifugal force.

However, the insurance does not cover if your equipment is broken due to corrosion, rust, wear, tear, or any natural causes. Like any other insurance, they don’t cover the expenses if the material got old and poorly taken care of. So, you will probably have to cover those expenses yourself.

Is It the Same as A Home Warranty?

The answer is no; a home warranty is different than equipment breakdown coverage because it’s cheaper than a home warranty and covers other things. A home warranty lasts for a year, or any time that’s mentioned in the contract. However, equipment coverage can stay for as long as the home insurance is in action.

The Bottom Line

Equipment breakdown coverage is an endorsement in home insurance and is definitely worth it when you consider the price. 25-$50 a year can provide a coverage of up to 50k, which is an excellent offer since many people experience appliance breakdown due to those reasons.

To learn more about homeowners insurance, give one of our top agents a call today at (509) 242-3244 or visit us at https://www.kbgagency.com/personal/homeowners-insurance/

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