If you’re a homeowner, it’s important to know about equipment breakdown endorsements. This addition to your home insurance can help protect you in the event that your home’s major appliances and systems stop working properly. Here’s what you need to know about this coverage and how it can benefit you.
What is an equipment breakdown endorsement?
As a homeowner, you’re responsible for a lot of things – from mowing the lawn, fixing that drip in the kitchen sink, or if you’re like me digging a squirrel out of your basement. But what about your home’s more important systems, like the electrical wiring or the HVAC unit? If any of these systems break down, it could be expensive to repair or replace them.
That’s where an equipment breakdown endorsement comes in. This add-on to homeowners insurance can help to cover the cost of repairing or replacing things like your home’s boiler, swimming pool pump, or refrigerator. So if your home’s AC unit goes on the fritz in the middle of summer, you won’t have to sweat it out – with equipment breakdown coverage your homeowner’s insurance will have you covered.
What does it cover?
Most homeowners insurance policies provide coverage for damage caused by fire, wind, hail, and other perils. However, there is one peril that is often excluded from standard homeowners policies: equipment breakdown. Also known as mechanical breakdown insurance, this endorsement provides coverage for the repair or replacement of damaged equipment. This can include everything from HVAC systems and appliances to electrical systems and plumbing. Equipment breakdown coverage can be particularly beneficial for older homes, which are more likely to have outdated or malfunctioning equipment. While equipment breakdown insurance is not required, it is an important coverage to consider if you want to be fully protected against all potential risks.
How much does it cost?
An equipment breakdown endorsement can typically cost between $50 and $100 per year but can vary from carrier to carrier. That’s a small price to pay for the peace of mind in case your home’s major appliances or systems break down. Of course, the cost of an equipment breakdown endorsement is just one factor to consider when choosing a homeowners insurance policy. You’ll also want to compare rates, coverage levels, and deductibles before making a decision. But if you’re looking for comprehensive protection for your home, an equipment breakdown endorsement is definitely worth considering.
Is there anything that it won’t cover?
Equipment breakdown is one of those things that is typically an add-on to home insurance coverage, but most people don’t really know what it is. Basically, it’s insurance for your home’s equipment. This includes things like your furnace, air conditioner, and water heater. If any of these things break down, the equipment breakdown coverage will pay to repair or replace them. However, there are a few things that this coverage doesn’t cover. For example, it doesn’t cover damage from rust, corrosion, or normal wear and tear.
So if your water heater springs a leak because it’s old and rusty, you’re out of luck. Equipment breakdown coverage also doesn’t cover flood damage or damage from pests like termites. So if your furnace goes out because of a flood, you’ll need to find another way to pay for the repairs.
How do I file a claim?
Filing an equipment breakdown endorsement claim is easy! Just follow these simple steps:
- Find your home insurance policy.
- Find the endorsements section and look for “equipment breakdown”.
- Assuming you've located the section on equipment breakdown coverage, it's time to file your claim. Just gather all of the necessary documentation and give your carrier or agent a call.
If you can’t find the endorsement section or maybe you couldn’t find your policy, don’t worry – give your agent a call and I’m sure they’ll be happy to help.
I typically recommend talking to your agent first for a number of reasons but do whatever is more comfortable for you.
What are the benefits of having this type of insurance policy?
Most people don’t think about their home insurance until they need it. But if you have a home, you need to have home insurance. And one of the best endorsements you can get is equipment breakdown endorsement.
Equipment breakdown endorsement protects you against the cost of repairing or replacing equipment that breaks down. This includes things like your furnace, air conditioner, water heater, and other major appliances. It also covers things like your electrical system, plumbing, and HVAC system.
Without equipment breakdown endorsement, you would have to pay for repairs or replacements out of pocket. This could be very expensive, and it could put a strain on your finances. With equipment breakdown endorsement, you can rest assured that you’re covered in the event of a breakdown.
So if you own a home, be sure to ask your insurance agent about equipment breakdown endorsement. It’s an affordable way to protect yourself from unexpected expenses.
Are there any alternatives besides equipment breakdown coverage?
When your home appliances go on the fritz, it can be a real headache. But what if you don’t have equipment breakdown coverage? Well, you could always buy a home warranty. A home warranty is like a mini insurance policy that covers the repair or replacement of home appliances. So if your dishwasher breaks down, you can call the home warranty company and they’ll send someone out to fix it or replace it. Of course, home warranties come with their own set of deductibles and exclusions, so be sure to read the fine print before you buy one. We highly recommend Armadillo for home warranty services.
If you’re like me, you break out into a cold sweat when one of your major appliances goes on the fritz. And if it’s during the middle of summer and your air conditioner conks out? Forget about it. I don’t even want to think about that happening! That’s why having an equipment breakdown endorsement is so important. It gives peace of mind in knowing that if something happens to your dishwasher, dryer, refrigerator or any other appliance or hvac system in your home, you’re covered. So what are you waiting for? Give us a call or request a quote below today and let us help protect your home from costly repairs!
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