Equipment breakdown coverage: Protect the equipment you depend on every day

Equipment breakdown coverage: Protect the equipment you depend on every day

A standard homeowner’s policy provides a great foundation to build on for protecting your home and personal property. But there are gaps, or areas in the policy where you might remain exposed to loss for items you rely on every day…your television, hot water heater, furnace, central air conditioner, home security system, well water pump, sump pump, refrigerator, computer, washer and dryer, swimming pool equipment, and the list goes on.

Isn’t an extended warranty good enough?

Sometimes yes, sometimes no. It depends on how much out-of-pocket expense you can afford when something breaks down. Suppose your furnace stops working on a cold and snowy January night. What would you do? Where would you go? Would you be able to cover repair costs and would you be comfortable waiting for the manufacturer’s service personnel to get to your house?

Repairs on equipment, like your furnace, can run into hundreds or thousands of dollars quickly. An extended warranty from the manufacturer will likely cover specific items or parts for a specific period of time (usually less than one year after the date of purchase), but labor costs are not always covered. On top of this, warranties can be costly themselves, sometimes costing up to 20% of the product cost. And you don’t get to choose the repair person…you have to use who the manufacturer sends.

Benefits of equipment breakdown coverage:

Homeowners equipment breakdown coverage puts you back in control. Here are some great benefits you’ll have with this coverage:

  • Less expensive than extended warranties—costing just pennies a day on average, saving you a bundle right up front.
  • The coverage is designed to allow you, the insured, to have more control over how the coverage is used—you choose the repair person and schedule visits that work for your lifestyle and within your time frame.
  • There is no age limit on your equipment—it doesn’t matter if your appliance is 10 days or 10 years old.
  • Temporary relocation is covered—homeowners equipment breakdown coverage kicks in to cover your living costs if you need to temporarily move out of your house due to equipment breakdown. This could be a life saver if your furnace breaks down in the middle of winter.
  • Human error is covered, too—yes, even if you cause the equipment breakdown, it’s covered. It also covers improper installation or lack of maintenance.