Equipment Breakdown Insurance Coverage for Homeowners

Basic Homeowner Coverage

A standard homeowner's insurance policy insures the home itself and the things you keep in it. This means that it provides coverage for both property damage and liability coverage which includes legal responsibility for injuries and property damage incurred by other people. Damage brought about by most disasters is covered, however there are exceptions.

It's important to understand what is covered. For example, damages following flood and earthquakes can be astronomical but the homeowner has to purchase two separate policies for flood and earthquake coverage. Maintenance-related problems are also the homeowner's responsibility. Today it's a worthwhile consideration to look into buying equipment breakdown coverage.

How It Works

Most homeowners don't budget for repair or replacement of appliances or other electronic equipment they use everyday, and most homeowner policies don't cover equipment breakdown. Equipment breakdown coverage picks up where standard homeowner policies leave off and surpass the coverage provided by individual warranties and service contracts which usually only cover one piece of equipment. Since it is an insurance policy, you can talk with your agent and customize coverage.

Benefits of Equipment Breakdown Insurance Coverage for Homeowners

Product warranties and service contracts do offer limited coverage and are better than nothing. Equipment coverage offers more protection against loss from failure of important household equipment because many of the policies pay for expenses accumulated because your home is uninhabitable due to equipment breakdown. This failure can be the result of unforeseen circumstances including:

• Accidents resulting in damage to covered equipment
• Boiler cracking
• Electrical arching
• Insulation deterioration
• Mechanical breakdown
• Power surges
• Short circuits
• Power interruptions
• Electrical line surges
• Overload

For example, if your generator breaks down following an ice storm or hurricane, your losses are covered including the costs incurred because you could not live in your home. Breakdown coverage can also pay for labor and extra expenses.

Equipment Covered

Today's homes are equipped with numerous mechanical and electrical devices used to keep us comfortable and make life enjoyable. Depending on the coverage you choose, your equipment breakdown insurance coverage for homeowners can include things like heating systems and even computers. Policyholders can protect and maintain the following types of equipment and appliances with equipment breakdown insurance:

• Air conditioning units
• Chair lifts
• Computers
• Compressors
• Dishwasher
• Elevators
• Furnaces
• Generators
• Home theaters
• Home-automation electronics like TV and audio equipment
• Hot water heaters
• Refrigerator/freezer
• Security systems
• Spa equipment
• Swimming pool equipment
• Vacuum systems
• Ventilating systems
• Washer and dryer
• Well pumps

Buying an Equipment Breakdown Policy

Several well-known insurance providers offer equipment breakdown policies to homeowners. Talk to your homeowner's insurance provider, or check the following resources to learn more information or to find out how to contact an agent to help you:

• Hartford Steam Boiler
• American Association of Insurance Services
• Northern Neck Insurance

Isn't Homeowner's Insurance Enough?

Homes today tend to be equipped with expensive apparatuses that make life convenient, functional and enjoyable, but these costly home additions create a gap in coverage for most homeowner policyholders. This is because most homeowner's policies don't cover things like mechanical, electrical or heating equipment breakdowns.

As a homeowner, you've invested in the systems that provide air conditioning, heating, hot water, and security along with additional amenities that are taken for granted in day-to-day living. But one breakdown can deliver a large repair bill to an unwary homeowner.

Home equipment has evolved. Years ago, few homes had central air conditioning. Now it is commonplace. Home generators and computers have also become standard in homes and are among the equipment prone to damage due to power outages. Instead of taking this risk, talk with your homeowner's insurance provider about adding equipment breakdown coverage to your homeowner's policy.