Most homeowner's policies do not cover the cost of repairing and replacing home appliances when they break down unexpectedly. In a modern home with smart-devices and appliances, this coverage is a necessity.

Technology is rapidly evolving, placing new demands on businesses and homeowners. Many new technologies rely on computerized and sensitive equipment, which are subject to costly breakdowns. From boiler and pressure vessels to sophisticated business computer systems, your equipment is vital to the success of your day-to-day living and operations.

An equipment breakdown endorsement protects you from the costs associated with repairing or replacing sophisticated household or business equipment damaged by mechanical, electrical or pressure failure.

Covered losses must be direct, accidental and sudden, such as a broken part or electrical arcing. Routine performance failure due to age is not covered.

Equipment breakdown will protect homeowners and/or business owners from unexpected events caused by or resulting from:

• Failure of pressure or vacuum equipment;
• Mechanical failure;
• Electrical failure;
• Rupture, bursting, bulging, implosion or steam explosion; that necessitates repair or replacement of the “covered equipment”.

So what is considered covered equipment?

Covered Equipment means equipment or appliances usual to the occupancy, maintenance or use of a dwelling or building that generate, transmit or utilize energy to operate including:

• Central air conditioning systems;
• Central vacuum systems;
• Home entertainment systems, “computer equipment” and televisions;
• Electric vehicle charging stations;
• Heating systems, including boilers and water heaters;
• Well water pumps and sump pumps;
• Water treatment systems;
• Home automation and security systems;
• Saunas, hot tubs and therapeutic baths;
• Swimming pool pumps and filtration systems;
• Stoves, wall ovens and refrigerators;

Please keep in mind that most insurance carriers do not insure for loss to “covered equipment” directly or indirectly caused by any of the following perils:

• Wear and tear,
• Marring,
• Scratching or deterioration;
• Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself;
• Smog, rot, rust or other corrosion.

In short, equipment breakdown coverage is an inexpensive way to protect your home’s mechanical systems and appliances which can be very costly to repair out of pocket. With this additional endorsement, all you pay is your special equipment breakdown deductible (often just $500) and the insurance company pays to repair or replace your machinery.

Some companies even offer up to 150% of replacement cost for newer, “greener” equipment.

Equipment Breakdown Coverage can be a great alternative to a home warranty. It provides added protection not included in a basic homeowners policy and peace of mind, knowing that you are prepared for the unexpected.

We would love to answer any questions that you might have. Contact Kovalev Insurance today and request a complimentary consultation to ensure your property is properly protected.