Equipment breakdown coverage

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:

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

• Are my appliances already covered by home insurance?

  Home insurance automatically covers your appliances if they’re damaged by a covered peril — like a fire or a storm. But unless you add on equipment breakdown coverage, your insurer won’t pay for repairs or new appliances if they’re damaged due to a mechanical or electrical failure.

• Is equipment breakdown coverage included in my home insurance policy?

  It depends on your insurer. You’ll generally need to add it on as extra coverage, but it’s possible that some comprehensive policies may already include it. Talk to your insurer to find out more.

• What should I do if I bought new appliances since taking out my policy?

  Talk to your insurer to find out if you need to let them know about new appliances.

  It’s also a good idea to keep receipts for your new appliances just in case something happens.