Most people assume their homeowners insurance will protect every part of their house and belongings, but that’s not always the case. While traditional policies cover damage from events like fire or storms, they usually don’t pay for losses caused by a sudden mechanical or electrical failure. That’s where equipment breakdown coverage comes in.
What Does Equipment Breakdown Include?
This type of coverage steps in when major household systems or appliances stop working unexpectedly. It can apply to:
- Heating and cooling systems
- Refrigerators, freezers, and food spoilage
- Computers and data recovery
- Washers, dryers, ovens, and microwaves
- Boilers, furnaces, and water heaters
- Backup generators and sump pumps
- Home entertainment and security systems
- Power panels and electrical components
- Fitness machines such as treadmills
- Hot tubs and spas
Think of it as an insurance-based alternative to an extended warranty. Instead of purchasing multiple warranties for individual appliances, you can add this single endorsement to your homeowners policy, often at a lower cost.
What’s Excluded?
Not every situation is covered. Claims will typically be denied if the failure is caused by:
- Normal wear and tear
- Age-related breakdowns
- Items still under warranty
- Equipment not located at your home
- Appliances used for business purposes
If your appliances are already old or near the end of their life span, it may make more sense to plan for replacement yourself rather than add this coverage.
Deductibles and Costs
Like other forms of insurance, equipment breakdown comes with a deductible. The good news is that this deductible is often lower than the one attached to your main homeowners policy. Cost is another major advantage. For roughly $25–$50 a year, you can typically secure up to $50,000 in protection. That makes it one of the more affordable add-ons available.
Is It Worth Adding?
To decide if this coverage makes sense for you, take stock of your household systems and appliances. Ask yourself:
- How much would it cost to replace these items?
- Are they still in good condition?
- Do they already have warranties?
If your appliances are relatively new and uncovered by warranties, equipment breakdown coverage can provide peace of mind and potentially save thousands in repair or replacement costs.
Before making a decision, talk with your insurance agent. They can give you a clear picture of the cost and help you weigh whether the protection is a smart addition to your homeowners policy.
