What is Equipment Breakdown Coverage On a Homeowners Insurance Policy?
Homeowners insurance brings to mind many things such as protection from fire, protection from theft, and protection from natural disasters. However, there’s another lesser-known yet equally important aspect of homeowners insurance which can save you from unexpected expenses: equipment breakdown coverage. This type of specialized insurance coverage is designed to protect you when home systems and appliances fail due to mechanical or electrical breakdown. Learn more about this beneficial type of insurance by reading on. Should you have any immediate questions, don’t hesitate to contact us. We’ll be happy to help in any way we can.
Understanding Equipment Breakdown Coverage
What Is Equipment Breakdown Coverage?
Equipment breakdown coverage is an insurance policy or endorsement which will provide a full repair or replacement for your home appliances and systems if they happen to suffer from damage or disrepair due to mechanical or electrical failure. The typical appliances or equipment included in most policies of thai type offered by insurers include everything from HVAC systems, to refrigerators, ovens and dishwashers. This type of coverage is often an optional addition to a standard homeowners insurance policy. The coverage offered covers damages which traditional homeowners insurance does not typically cover.
How Does It Work?
This specific type of coverage kicks in when your home equipment fails due to unexpected mechanical or electrical breakdown which is not due to standard wear and tear or negligence. An example of this could be your home’s central air-conditioning system suddenly stops working due to a short-circuit within its electrical system. The equipment breakdown coverage can help cover the costs of repairing or replacing the unit, making you whole once again.
Key Features of Equipment Breakdown Insurance
Broad Coverage
Equipment breakdown insurance will typically cover all major home systems and appliances, regardless of how old they are, their make, or their model number. This will often include heating and cooling systems, computers and other valuable electronics, home security systems, and sometimes even swimming pool equipment if you happen to have a pool or hot tub on your property.
Cost-Effective Solution
Choosing to add on equipment breakdown coverage on your homeowners insurance policy can be a great way to help ensure you’re fully covered should something go wrong with the equipment within your home or on your property. It’s quite cost-effective as well, with policies amounting anywhere from $25 – $50 per year. This is a small price to pay if you happen to end a repair or full replacement on a major system or appliance within your home or on your property.
Convenience
When you have this coverage, you only need to deal with one insurer and one policy if and when something goes wrong. Simplifying the claims process and expediting the time it takes to have your home’s equipment repaired or replaced can be a great benefit of having equipment breakdown coverage.
What Equipment Breakdown Coverage Does Not Cover
While equipment breakdown coverage is comprehensive, there are limitations to what it will cover:
- Wear & Tear: Normal wear and tear or gradual deterioration of home equipment is not covered
- Cosmetic Damage: Damage that does not impair the functionality of the equipment is typically excluded
- Software Issues: Problems related to software or data loss are not covered under equipment breakdown insurance
Why Consider Equipment Breakdown Coverage?
Saves Money
Saving money by purchasing an equipment breakdown coverage policy is one of the best benefits. Replacing a full HVAC system can amount to thousands of dollars, while having a proper level of courage through your equipment breakdown coverage policy can help fully cover these associated costs.
Adds Peace of Mind
Having the peace of mind knowing you can have a malfunctioning appliance or system repaired or fully replaced without a significant financial burden or frustration will offer you a new level of peace of mind.
Enhances Home Efficiency
When you have the ability to have things, equipment or systems around your home repaired or replaced with efficiency, you can continue to maintain a comfortable living environment and prevent further disrepair from occurring.
How to Get Equipment Breakdown Coverage
If you’re interested in adding equipment breakdown coverage to your homeowners insurance, you’ll want to start by contacting us at Portsmouth Atlantic Insurance to see how we can help. We can advise you on whether or not your current insurer offers this endorsement, and if they do, what are the specific terms and coverage limits. Or if you need to switch insurers to access this specific coverage option, we can help with that too.
Choose Portsmouth Atlantic Insurance for Your Homeowners Insurance Policy Needs
Equipment breakdown coverage is a valuable addition to any homeowners insurance policy. By extending the life of your equipment, appliances, and systems through proper repair measures, you can save money over the long run.If you happen to need a full replacement of any equipment, appliances, or systems; you rest assured your equipment breakdown coverage policy will likely cover what you need. Feel free to contact us for a full assessment on your current homeowners insurance policy, and we can also explore the option of adding equipment breakdown coverage to better protect your equipment, systems, and appliances.