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Equipment breakdown coverage

Protect your home from the cost of broken-down appliances and equipment, especially if you don't have warranty on your goods.

Equipment breakdown coverage can help repair or replace your appliances and equipment after a mechanical or electrical failure. But it's not always cost-effective for every homeowner.

Name Product Storm & water backup Valuable property Enhanced rebuild Homeshare coverage Available states
Lemonade home insurance
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Allstate home insurance
Allstate home insurance
All 50 states
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USAA home insurance
USAA home insurance
All 50 states
Enjoy great rates and wide coverage with USAA. Available to military members and family.
All 50 states, District of Columbia
Policygenius home insurance
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This online marketplace does most of the work for you, matching you with quotes from 14 highly rated home insurers.
Liberty Mutual home insurance
All 50 states
Invest in affordable insurance that protects your home and your property from damage no matter where you live.

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What is equipment breakdown coverage?

Equipment breakdown coverage can repair or replace your appliances if they stop working due to a mechanical or electrical failure.

Coverage varies from policy to policy, but you’ll generally be covered for mechanical or electrical damage to your:

  • Refrigerator or freezer
  • Washer or dryer
  • Computer
  • Oven
  • Microwave
  • Heating and cooling systems
  • Water heater
  • Generator
  • TV and entertainment system
  • Security system
  • Sump pump
  • Electrical power panel and generator
  • Garbage disposal
  • Other electric appliances

How does equipment breakdown coverage work?

If your covered equipment stops working due to a power surge, short circuit, motor burnout or mechanical breakdown, contact your insurer to file a claim and get repairs or get reimbursed for a replacement.

If your policy covers food spoilage, you may want to take a picture of your fridge and/or freezer to include in your claim.

Whether or not you’re covered for accidents will depend on your specific policy, so if the damage is due to an appliance being dropped, knocked over or otherwise accidentally damaged, check your policy documents before filing a claim.

Is equipment breakdown insurance worth it?

It depends on your financial situation and your appliances. If most of your appliances and equipment are old and are prone to breaking down due to wear and tear, the extra coverage might not be worth the cost.

But if your appliances and equipment are still in good shape, coverage could save you a lot of money if something happens — especially if they aren’t warrantied.

If you’re on the fence, write down all of the appliances and equipment in your home that would be covered, and figure out how much each would cost to replace. Then, get a quote for coverage from your insurance agency to see if the cost of coverage is low enough to be worth it.

What kinds of exclusions are there?

Exclusions will vary from policy to policy, but you generally won’t be covered for:

  • Damage due to wear and tear
  • Equipment that stops working because of age
  • Equipment or appliances that are covered by a guarantee or warranty
  • Appliances not kept at your insured address
  • Equipment used for a business if claimed under a home insurance policy

Bottom line

Equipment breakdown coverage can help protect you from the financial consequences of an electrical or mechanical failure in a pricey appliance. Compare home insurance policies that will let you add coverage for your home appliances.

Frequently asked questions about appliance coverage

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