You may already know that equipment breakdown insurance is a standard and necessary element of many commercial business insurance packages. What you may not know is that this coverage is also available for homeowners. Traditional homeowners insurance policies do not cover losses related to equipment breakdown, so if you have expensive equipment in your home (such as high-end appliances, computer and security systems or HVAC equipment), this coverage might be a smart addition.
How Does Equipment Breakdown Insurance Work?
If a covered peril – such as a fire or hailstorm – results in damage to equipment, the loss will likely be covered by a standard home insurance policy. However, if equipment simply stops working due to mechanical or electrical failure, it will not typically be covered.
Imagine an electrical malfunction wiping out your home theatre system. This coverage could potentially cover the cost to repair or replace your system, depending on the policy terms.
What Does Equipment Breakdown Insurance Cover?
Equipment breakdown insurance can cover many different types of household equipment and appliances. Here are some common items that can be covered:
- HVAC systems
- Refrigerators and freezers
- Ovens and stoves
- Washers and dryers
- Security systems
- Home entertainment systems
- Well pumps
- Workout equipment
- Swimming pool equipment
This list is not complete, and the coverage available may vary depending on the carrier. If you want to make sure that a specific piece of equipment is covered, talk to your insurance agent.
It’s also important to understand that certain issues may not be covered. Losses caused by a lack of maintenance or the end of the equipment’s normal lifespan may be excluded from coverage.
Is Equipment Breakdown Insurance Right for You?
Equipment breakdown can be both expensive and inconvenient. For those with high-end appliances and systems, an equipment breakdown endorsement can provide added peace of mind.
Talk to your BNC insurance agent to see if this coverage is right for you.