Imagine it's a sweltering summer day in Florida, and your air conditioner suddenly stops working. Or maybe the refrigerator fails right after you've stocked it with groceries. These scenarios aren't just inconvenient – they can also be costly. This is where equipment breakdown coverage comes in. This type of home appliance insurance can be a lifesaver, covering your household appliances and systems when they unexpectedly fail.
What Is Equipment Breakdown Coverage?
Equipment breakdown insurance is designed to cover the repair or replacement of essential household systems and appliances when they fail due to mechanical, electrical, or pressure system breakdowns. In this way, it’s a form of home appliance insurance – but it’s not a maintenance contract. It doesn’t cover problems or repairs/replacements due to wear and tear, neglect, product defects, or lightning/fire/water damage. Instead, equipment breakdown helps when you’re faced with sudden, unexpected breakdowns disrupting your daily life and hitting your wallet hard.
Home appliances and systems are critical to your comfort and convenience. An air conditioner breaking down during a heatwave or a water heater failing mid-shower can be more than just a minor annoyance. These breakdowns can lead to expensive repairs or replacements. With equipment breakdown coverage, you have a safety net to help you avoid these unexpected expenses.
What Is Protected with Equipment Breakdown Coverage?
Adding this coverage to your homeowners insurance policy is straightforward and affordable. For a nominal fee, you can secure protection for your home’s essential systems and appliances, giving you peace of mind. Equipment breakdown coverage can be added at any time, ensuring you’re never caught off guard by unexpected repairs.
The equipment breakdown endorsement covers three major categories of home equipment:
1. Major Appliances
Your major appliances, such as the refrigerator, stove, dishwasher, hot water heater and microwave are covered under this home appliance insurance. Equipment breakdown coverage steps in to cover the repair or replacement of these appliances, often saving you from a hefty bill.
2. Electronics
In today's connected world, our homes are filled with electronics like TVs, sound systems, computers, and smart home devices. These gadgets are not just luxuries; they have become essential parts of our daily lives. If your home theater system or smart thermostat malfunctions, equipment breakdown protection ensures you won't be left in the lurch.
3. Home Systems
Your home's systems, including the AC, electrical panels, and home security alarm, are also covered. These systems are often complex and sophisticated, and repair bills alone can run you thousands of dollars. With an equipment breakdown add-on endorsement, such costs would be covered, ensuring you enjoy all the conveniences of home.
Service Line Coverage
When you purchase equipment breakdown coverage from Edison Insurance Company, you have the opportunity to also add service line coverage. This covers the underground piping bringing utilities into your home (not available for condominiums) – including water, sewer, power and communication lines. If these lines break or leak, the repairs can be costly. Service line coverage steps in to handle these expenses.
Service Lines: What's Covered?
- Water, sewer, and steam pipes
- Drain lines
- Power and communication lines
Service line coverage protects against leaks, breaks, tears, and ruptures. Unlike equipment breakdown coverage, service line coverage will kick in, even if the damage is related to wear and tear. The types of services provided by service line coverage include excavation, line repair, any fees necessary to expedite repair, and loss-of-use expenses.
Service Lines: What's Not Covered?
- Blockages or low pressure: issues not involving a break or rupture (and the line itself is undamaged)
- Lines not considered the homeowner's responsibility (and instead maintained by utility companies, for example)
- Lines located under or through the home, under water, or connected to sprinkler/irrigation systems
- Unconnected piping or wiring
- Clean up of hazardous waste or sewage
How to Use Equipment Breakdown Coverage
Regular inspection and maintenance of the home equipment you count on can help prevent some issues. Make sure to schedule routine checks for your HVAC system, water heater, and other major appliances and with the appropriately trained professionals. (As an Edison policyholder, providing proof of an existing HVAC maintenance contract can lead to premium discounts, please contact your agent to learn more.)
It’s important to note equipment breakdown coverage kicks in only when the insured property – be it an appliance, electronics, or home system – is damaged enough to require repair or replacement of the item.
Every insurance policy is different, so take the time to familiarize yourself with what is covered under yours. Ask your agent for clarification if you have any questions. And, if your home equipment fails after your policy is bound, contact your agent or insurer promptly. Delaying repairs can sometimes lead to more extensive damage.
Examples of Covered Scenarios
Air conditioning repair – with equipment breakdown coverage: During a particularly hot Florida summer, the Jones family faced a breakdown of their air conditioning unit due to a refrigerant leak. The compressor overworked and seized, leading to a repair bill of $1,915. Thanks to their home appliance insurance, the cost was covered, keeping their home comfortable and their budget intact.
Sewer line intrusion – with service line coverage: Another homeowner experienced sewer line damage caused by tree roots. The necessary excavation and repairs amounted to $8,800. With service line coverage included with their equipment breakdown coverage, the homeowner only had to cover a fraction of the cost, saving them from a large financial burden.
Protect Against Unexpected Home Equipment Breakdowns
Protecting your home from unexpected equipment breakdowns is essential for maintaining a comfortable and stress-free living environment. With equipment breakdown protection, you can safeguard your major appliances and home systems, ensuring you're covered when it matters most.
At Edison Insurance Company, we’re dedicated to helping you protect your home and everything in it. Contact your agent today to add equipment breakdown coverage to your policy, or if you’re not yet insured with us, get an online quote now. Your home deserves the best protection, and we’re here to provide it.
