Unexpected equipment failures can cause major disruptions at home—not to mention expensive repair bills. That’s where equipment breakdown coverage comes in. This optional protection extends beyond a standard homeowners policy, helping you handle the sudden and accidental failure of essential household systems and electronics.
What Is Equipment Breakdown Coverage?
Equipment breakdown coverage steps in when covered property in your home is damaged due to a mechanical, electrical, or pressure system failure. Unlike routine maintenance plans, it’s designed for sudden malfunctions, not everyday wear and tear. Some of the items it typically protects include:
- Central air conditioning systems
- Kitchen and household appliances
- Computers and personal electronics
- Backup generators
- Water heaters
- Security systems
- Well pumps
Think of it as a safeguard for the technology and systems you rely on most.
Cost and Coverage Limits
One of the appealing aspects of this coverage is its affordability. Many insurers offer it for a small annual fee—often around $50—with the option to add service line coverage for a modest increase. Policies usually provide up to $100,000 in protection per incident, subject to a deductible (commonly $500).
While there are no restrictions based on the age of your equipment, it’s important to understand what isn’t included. For example, septic tanks, irrigation systems, and routine wear-and-tear repairs are excluded. However, if gradual wear leads to an actual equipment breakdown, the resulting damage may still qualify for coverage.
Key Things to Know Before Adding It
- You can usually add this coverage to an existing homeowners policy at any time with your agent’s help.
- Claims are triggered when a breakdown occurs, and the policy helps pay for repair or replacement.
- Covered events include mechanical failure, electrical issues, and pressure-related breakdowns.
- Unlike appliance warranties or service contracts, you’re free to use your own contractor for repairs.
- If you want extra protection, service line coverage—covering underground utility lines leading to your home—can often be bundled with equipment breakdown coverage for a small additional cost.
Why It Matters
Most homeowners don’t budget for sudden equipment failures, and the costs can add up quickly. A broken AC unit in the middle of summer or a failed water heater during winter can easily run into thousands of dollars. Equipment breakdown coverage helps you prepare for these unexpected situations without draining your savings.
By adding this optional coverage to your policy, you’re not just protecting appliances—you’re protecting your comfort and peace of mind.
