Several homeowner’s insurance carriers offer Equipment Breakdown coverage. Equipment Breakdown covers important home systems and personal property due to loss by mechanical or electrical breakdown. Some of the covered items include:
-Air conditioning systems
-Computers and other home electronics
Equipment Breakdown provides coverage for mechanical or electrical breakdowns. It does not cover maintenance issues or normal wear and tear. What is the difference between mechanical breakdown and wear and tear? Mechanical breakdowns usually occur suddenly. Normal wear and tear and maintenance issues happen over an extended amount of time.
Here are some claim examples of mechanical or electrical breakdown. If an insured has Equipment Breakdown added to his/her policy, there would be coverage for the following:
· An insured’s property was hit with an artificially generated power surge. The boiler and water heater controls, security system and media equipment were damaged. Amount of loss: $18,341.
· During a family vacation, a storm caused a power outage. A laptop computer and cell phone were charging when the outage occurred. When power was restored, a voltage spike damaged the items beyond repair and required their replacement. With the Off-Premises coverage included in the Equipment Breakdown endorsement, the homeowner would now be covered! Amount of loss: $1,495.
· The circuit board in a subzero freezer arced. Due to the age and availability of a circuit card, the whole unit had to be replaced. The cost to replace the unit was $9,259. The endorsement also extended additional coverage for food spoilage. Amount of loss: $11,345.
Most carriers offer a lower deductible for equipment breakdown coverage and some will waive a claims rating on the home policy. If you are interested in learning more about Equipment Breakdown, please talk to your agent.