What Is Equipment Breakdown Coverage on Homeowners Insurance?

Summary: You can add equipment breakdown coverage to your homeowners insurance for extra protection focusing on electrical and mechanical failure. Homes have many electrical components that can benefit from this insurance rider, including HVAC, light fixtures, appliances, and more. Home warranties are also available but operate differently. Each equipment breakdown coverage homeowners has its own form of protection and it’s important to shop and compare them in order to find the right policy at the lowest price. Estimated Read Time: 3 mins

Table of Contents:

1. Equipment Breakdown Coverage Examples for Homeowners
2. Equipment Breakdown Coverage vs Home Warranty
3. Is Equipment Breakdown Coverage Worth It?
4. Get a Quote on Equipment Breakdown Coverage in Texas

Equipment breakdown coverage is an insurance rider for your home’s appliances and systems if they break due to electrical or mechanical failure.

Standard home insurance covers some damage, but usually only for things like fires.

Adding equipment breakdown coverage to homeowners insurance provides additional protection for unexpected damage.

Equipment Breakdown Coverage Examples for Homeowners

Equipment breakdown coverage can protect many household systems and appliances. Some examples include protection for the following:

• Backup generators
• Computers
• Dishwashers
• Electrical panels
• Furnaces
• Heat pumps
• Home automation/security systems
• HVAC systems
• Refrigerators
• Stoves
• Sump pumps
• Swimming pool equipment
• Water heaters
• Washers and dryers

Most companies offering equipment breakdown coverage on a homeowners policy provide between $10,000 and $50,000 in protection, but you may be able to get more for an extra cost.

The exact systems covered by your policy will vary by provider, so it’s a good idea to compare quotes from different companies to find the best coverage for your needs and budget.

Not Covered for Homeowners

Homeowners equipment breakdown coverage is there for you during failures from electrical and mechanical issues but not from normal wear and tear or lack of maintenance.

Therefore, you’re going to need to keep up with the maintenance of your home, even if you add this insurance rider for protection.

Finally, equipment breakdown coverage exclusions also include damage from fire, lightning, wind, or hail, but a standard homeowners insurance policy will cover such perils.

Equipment Breakdown Coverage vs Home Warranty

Home warranties cover repairs for major appliances, HVAC systems, water heaters, sump pumps, vacuum systems, and washers and dryers.

However, they still might not cover the same items as equipment breakdown coverage. Both are limited to specific equipment according to their individual terms.

Home warranties are usually more expensive than adding an equipment breakdown protection coverage form to your policy, though many appliances automatically come with their own warranties.

Is Equipment Breakdown Coverage Worth It?

Considering equipment breakdown coverage protects your home’s expensive systems and appliances, like air conditioning compressors and hot water tanks, it can be well worth the investment.

On average, adding home equipment breakdown coverage can help you save by paying the full cost of repairs out of pocket for under $100 per year.

In many cases, carriers offer up to $100,000 in coverage with deductibles costing hundreds of dollars.

Smaller jobs can run $100 to $250 to restore your loss on average.

However, if you face multiple issues, for example, in the aftermath of a major power surge, having homeowners insurance equipment breakdown coverage may save you thousands.

Get a Quote on Equipment Breakdown Coverage in Texas

More and more our homes are equipped with modern conveniences that greatly enhance our living space but are costly to repair.

Freedom Insurance Group has partnerships with 25+ top-rated insurance companies in Texas offering a wide range of products, including equipment breakdown coverage for condominiums and homes.

Shopping for equipment breakdown coverage home insurance policies doesn’t have to be a hassle and our team can help you easily compare coverages in no time.

To save money on the protection you need, ask an agent or get an online home insurance quote today to find the lowest policies offering equipment breakdown coverage near you.

Sources:

How Much Do Appliance Repairs Cost? [2024 Data], Angi. Accessed June 2024. https://www.angi.com/articles/how-much-do-kitchen-appliance-repairs-cost.htm