What Is Equipment Breakdown Coverage On Homeowners Insurance
What Is Equipment Breakdown Coverage On Homeowners Insurance?
Equipment Breakdown Insurance Overview
Homeowners insurance typically covers damage to your home and possessions due to natural disasters, fires, and theft. But what about damage to your appliances, electronics, and other equipment due to mechanical breakdowns? That’s where equipment breakdown coverage comes in. Equipment breakdown coverage is an optional coverage that can be added to your homeowners insurance policy. It covers the cost of repairs or replacement of equipment due to mechanical failures, electrical failures, and electrical surges. This coverage is also sometimes called “boiler and machinery coverage” or “mechanical breakdown insurance.”
What Equipment Is Covered?
Equipment breakdown coverage usually covers a wide range of equipment, including furnaces, air conditioning units, water heaters, dishwashers, refrigerators, washing machines, dryers, computers, televisions, and more. Basically, any type of equipment you have in your home that can experience a mechanical or electrical breakdown is covered under equipment breakdown coverage. The coverage also typically covers any damage the breakdown causes to other items in your home, such as a flood caused by a broken water heater.
What Is Not Covered?
Equipment breakdown coverage does not cover damage due to normal wear and tear, intentional acts, or improper maintenance. The coverage also does not cover damage due to power outages or power surges from your utility company. It is important to understand the exclusions of your policy so you know what type of damage is covered and what is not.
How Much Does Equipment Breakdown Coverage Cost?
The cost of equipment breakdown coverage varies depending on the type of equipment you want to cover and the value of that equipment. Typically, the cost is based on the age of the equipment and its replacement value. The cost of the coverage is usually relatively low, typically ranging from $50 to $100 per year.
Is Equipment Breakdown Coverage Worth It?
For most people, equipment breakdown coverage is a wise investment. It can save you hundreds or even thousands of dollars in repair or replacement costs if your equipment breaks down. However, if you have older equipment that is not worth very much, you may want to consider skipping this coverage. Ultimately, it is a personal decision and should be based on your individual needs and budget.
Conclusion
Equipment breakdown coverage is an optional coverage that can be added to your homeowners insurance policy. It covers the cost of repairs or replacement of equipment due to mechanical failures, electrical failures, and electrical surges. The cost of the coverage is usually relatively low, and for most people, it is a wise investment. However, it is important to understand the exclusions of your policy so you know what type of damage is covered and what is not.
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