Today’s modern home is loaded with systems and equipment that can be expensive to fix when they break. Dishwasher motors go out, washing machines suddenly stop working, our water heaters need to be replaced. All these unexpected expenses can add up quick. And to many peoples surprise: appliances that break down from electrical or mechanical failures aren’t typically covered in your homeowner’s insurance policy. We know, gasp! That’s where Homeowners Equipment Breakdown coverage comes in. It’s a key add-on that fills the gaps in your standard homeowner’s policy to protect against mechanical failure or electrical breakdown. And it includes just about everything plugged into your wall.
Not all insurers offer this special coverage, so you may need to shop around for new homeowners insurance if you want to insure your appliances and equipment against breakdowns.
How It works
For a small cost (many times less than $50) you can add this coverage onto your Swyfft home insurance policy. In return you’ll be covered up to $100,000 per occurrence, like when your pool pump seizes or an electrical surge takes out your TV’s and computers.
What Does Equipment Breakdown Coverage Cover?
A lot! Good rule of thumb: if it uses electrical power, it’s most likely considered covered property with respect to the equipment breakdown endorsement:
- Washers/Dryers
- Dishwashers
- Refrigerators/Freezers
- Microwaves
- Ovens
- Well Water Pumps
- Televisions
- Swimming Pool Equipment
To view a full list of what’s covered, visit our Equipment Breakdown site. Or! Take A Tour of our interactive site to see examples and tips.
What it Doesn’t Cover
This coverage can save you thousands of dollars when it comes to broken down houseware systems. But this endorsement excludes everyday wear and tear – so things like mold, cracking, shrinking and expanding, corrosion, and pest damage.
Still not sure? Here are some commonly asked questions:
What is Equipment Breakdown Coverage?
This coverage closes coverage gaps in the standard homeowner property policies. It responds the same way a homeowners policy does and includes electrical, mechanical or pressure equipment that suffers an equipment breakdown. This coverage eases the burden of budgeting for unexpected losses from equipment breakdown.
How important is coverage for internal breakdowns to your home appliances?
When any essential home appliance seizes, cracks or shorts out, it could be a covered loss. Homeowners are responsible to repair or replace the unit unless they have Equipment Breakdown coverage. This coverage closes the gap with a simple, affordable solution that protects expensive pieces of equipment from an equipment breakdown loss. For example, if a power surge damages multiple pieces of equipment in your home, Equipment Breakdown coverage would cover the repair or replacement costs. Without this coverage, the homeowner would be responsible for these expenses.
How expensive is it to replace or repair home equipment?
Air conditioning units, appliances, pool pumps and security systems are just a few examples of expensive equipment that make your home comfortable. The average cost to replace a new air conditioning system is $4,500. Imagine your home experiences a severe power surge that damages multiple pieces of equipment. The cost to repair or replace these units could add up quickly.
Unfortunately, the majority of homeowners do not budget for the expense associated with repairing home equipment. Equipment Breakdown coverage is a valuable, affordable solution to protect the equipment in your home.
How does this coverage differ from a Home Warranty?
Home warranties are expensive and restricting. Equipment Breakdown coverage is affordable, straightforward, and isn’t limited to specific types of equipment.
Is There Coverage For Personal Property Away From the Insureds Home?
Yes, Off-Premises coverage is included. We’ve extended coverage for property that is away from your home so you get extra protection for your stuff. Like a laptop being used away at school.
What is the different between mechanical breakdown and wear and tear?
A mechanical breakdown usually occurs suddenly. Wear and tear typically occurs over time. In instances where wear and tear occurs, performance of the equipment slowly declines and its capacity diminishes; however, the equipment continues to operate but does not perform as expected. Therefore, because coverage for wear and tear is excluded in the homeowner’s policy and no equipment breakdown has occurred, there would also be no coverage provided by the equipment breakdown endorsement.
Can you remind me again why I should add Equipment Breakdown Coverage?
Adding Equipment Breakdown coverage is a simple, affordable solution that closes coverage gaps and protects valuable home equipment, including:
- Air conditioning systems
- Appliances
- Electrical service panels
- Garden tractors
- Heat pumps
- Heating systems
- Home security systems
- Televisions
- Sump pumps
- Swimming pool pumps and motors
- and many more…
Takeaway
This special coverage fills the gaps in your homeowners insurance. Most homeowners insurance policies don’t cover the cost of repairing and replacing your home equipment when it breaks down (i.e. seizes, cracks, snaps, shorts, burns out). That’s where Homeowners Equipment Breakdown coverage comes in. Homeowners Equipment Breakdown Insurance is a must have for any modern-day homeowner.
Contact your Swyfft Agent today to add it to your current policy.