What Is Equipment Breakdown Coverage for Homeowners?
Having equipment breakdown coverage with your homeowners insurance is smart. It provides additional protection for common home appliances, furnaces and HVAC systems in case of mechanical or electrical breakdown. It also helps cover the cost to speed up repair or replacement of damaged property. But keep in mind that equipment breakdown insurance doesn’t cover normal wear and tear.
With the AARP
® Homeowners Insurance Program from The Hartford,
1 you can add this coverage to your
home,
condo or
renters insurance policy.
What Does Equipment Breakdown Insurance Cover?
Equipment breakdown coverage protects you from equipment breakdowns in your home. For instance, if your appliances, furnace or HVAC system have a mechanical or electrical breakdown, your coverage would kick in. It can also help cover boilers and pressure system breakdowns.
Examples of Equipment Breakdown Coverage for Homeowners
As long as it’s a result of a mechanical or electrical breakdown, your equipment breakdown coverage can help cover the cost to repair or replace a range of devices in your home, like your:
- Heating
- Air conditioning systems
- Refrigerators
- Riding lawn mower
- Home security systems
- Water heater
In addition to the repair or replacement costs, this insurance helps with covering losses like food or beverage spoilage. It also helps cover damage from power surges after electricity turns back on.
Is Homeowners Equipment Breakdown Coverage Right for Me?
This coverage is an inexpensive way to protect your home’s mechanical systems and appliances, which can be costly to repair out of pocket. With this additional coverage, all you’ll have to pay is your deductible and we’ll cover the rest of the cost to repair or replace your items.
Keep in mind that insurance coverage availability varies by state and is optional for an extra premium.
Equipment breakdown coverage can also provide coverage if you want to make “green” upgrades. This helps pay up to 125% of your cost to replace any covered equipment with items that are similar, but more energy efficient or environmentally friendly.
If you're a small business owner, you can also add
equipment breakdown coverage to your existing Business Owner's Policy to protect your business from unexpected equipment breakdown.
Homeowners Equipment Breakdown Coverage Costs
Equipment breakdown coverage is generally an inexpensive
home insurance endorsement you can add to your policy for around $25-$50 per year. Plus, if you’re 50 or older, you’ll be eligible for special
home insurance discounts by using your AARP membership.
How Is Equipment Breakdown Insurance Different From Home Warranties?
Home warranties are different from equipment breakdown insurance in terms of how they are purchased, what they cover and how much they typically cost.
While equipment breakdown coverage is an endorsement to your homeowners insurance policy, a home warranty is a standalone service contract that must be purchased from a separate company. Home warranties cover normal wear and tear whereas equipment breakdown coverage protects from sudden electrical and mechanical breakdowns.
A home warranty is typically more expensive than equipment breakdown coverage, usually costing $300-$600 per year. Home warranties are also subject to additional costs like service fees to pay service providers when they come to your home to inspect or repair an appliance.
Equipment Breakdown
This video will help you learn how beneficial equipment breakdown insurance can be.
Last Updated: September 6, 2022
