What is equipment breakdown coverage?

Equipment breakdown coverage is a homeowners insurance endorsement that helps pay for appliance damage caused by an electrical or mechanical failure. A standard home insurance policy covers home appliances when they’re damaged by a covered peril, but it won’t cover mechanical or electrical breakdown — or anything else that’s considered a maintenance issue.

What does equipment breakdown insurance cover?

Equipment breakdown coverage covers household systems and appliances if they’re damaged or break down due to an electrical or mechanical failure. Most insurance providers offer this coverage as an endorsement that you can add to your homeowners insurance policy for a small additional premium.

Equipment breakdown coverage protects a variety of different appliances and devices in your home when they break down because of a covered incident. Here are some examples of covered appliances and losses:

  • Heating and air conditioning systems

  • Computers and computer equipment

  • Refrigerators and freezers

  • Food spoilage

  • Washers and dryers

  • Ovens and microwaves

  • Boilers and furnaces

  • Water heaters

  • Back-up generators

  • Home entertainment systems

  • Sump pumps

  • Home gym equipment like a treadmill

  • Jacuzzis

  • Electrical power panels

  • Home security systems

Depending on your provider, you may be able to add up to $50,000 in equipment breakdown coverage that you can use for any single occurrence. An occurrence could be a single power surge that destroys multiple appliances in your home, or something smaller like your refrigerator breaking down and the resulting food spoilage.

Sample Endorsement

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