Home · The machine is not the water it spills
Equipment-breakdown coverage is an endorsement for a sudden mechanical or electrical failure. It is not wear, it is not a home warranty, and it is not the same as the water damage a burst heater causes.
A standard HO-3 pays for many sudden causes of loss to the dwelling. A motor that burns out, a compressor that seizes, or a panel that fails from age is often just wear. The form commonly excludes mechanical and electrical breakdown unless you add equipment-breakdown coverage. That endorsement, when it is on the policy, pays for the sudden failure of covered equipment, usually up to its own limit. It does not pay because an appliance got old. If the failure dumps water, the resulting damage may still be the sudden-discharge peril, while the failed part is the endorsement or is not covered at all. Forms differ. Continuous seepage is commonly excluded either way.
Two machines people ask about: power surges and water heaters. The dwelling policy: Texas homeowners. An old panel is not automatically a claim: panel replacement. The business version is separate: commercial property.
