We don’t often think about the numerous systems required to keep our homes comfortable places to live in. Heating systems warm us on cold winter days, air conditioning keeps us cool in summer, the pump and filter system that power your swimming pool, or the security system that keeps your home safe. These home systems are both complex and expensive. Protect important home systems from mechanical and electrical breakdown with equipment breakdown insurance.
What is Equipment Breakdown Insurance?
Equipment Breakdown Insurance is an optional endorsement, that can be added onto your high value homeowners’, condominium insurance or renters’ insurance policy. EB provides protection for your home’s important systems, against losses caused by electrical shorts, power surges, motor burnout, mechanical breakdown and even operator error.
What Does Equipment Breakdown Insurance Typically Cover?
As long as the problem results from a mechanical or electrical breakdown, equipment coverage can help pay to replace or repair home systems such as:
- Central air conditioning
- Heating systems such as furnaces, heaters, heat pumps, and solar heaters
- Riding lawn mowers
- Refrigerators, Kitchen and laundry appliances
- Media rooms, sound systems and televisions
- Back-up generators
- Home security systems and monitoring systems
- Boilers and water heaters
- Pool and spa equipment
- Ventilation systems and fans
- Electrical service panels
- Central vacuum systems
- Well pumps
- Motorized chair lifts and elevators
- Computers and servers (does not cover software)
- Sump pumps
- Smart home systems
Equipment Breakdown provides coverage for built-in systems or those permanently attached to your home, which represent a significant expense to replace or repair. EB does not provide coverage for everyday maintenance problems that arise from normal wear and tear.
Other Key Features of Equipment Breakdown Coverage:
Additional Living Expenses: If you’re unable to stay in your home due to a covered loss, (for example a non-functioning furnace), your policy pays for you to live in alternate housing in keeping with your current standard of living.
Worldwide Coverage: No matter where the mechanical or electrical failure takes place, your coverage extends to portable items such as laptops, portable generators, or other equipment that travels with you.
Improved Efficiency Replacements: EB coverage pays up to 150% of the damaged equipment’s replacement cost, for a new system that is safer or more energy or water efficient or is better for the environment.
Protection Extends to Other Structures: Your coverage extends to other structures on your property such as a separate home office, a “she-shed”, barn or garage.
Consider the Following Claim Scenario:
In January, a client’s furnace stops working. The limit switch on the furnace is faulty, a replacement will need to be ordered and will take weeks to arrive. The home was without heat and the family was displaced for several days, while a new part arrived and was installed. The client’s Equipment Breakdown coverage paid $9,500, to cover the cost of the replacement part as well as temporary housing for the family.
Doesn’t My Homeowners’ Insurance Protect the Systems in My Home?
You may think that the important systems within your home, are protected by your home insurance. Home insurance is designed to protect against unexpected risks such as a falling tree, fire, theft or burst pipe. While your homeowners’ insurance will reimburse for any damage to the home that was created by the system failure, it will not provide reimbursement for the equipment itself. For instance, if your water heater lets go, your homeowners’ insurance will pay for the water damage to your home, but it will not pay to replace the water heater itself.
Mechanical and electrical breakdown is NOT a covered loss under most traditional homeowners’ policies.
Adding an equipment breakdown endorsement onto your existing high value homeowners’ insurance policy is an affordable way to protect valuable systems within your home.
I Purchased an Extended Warranty for My Furnace, Won’t that Protect My
Warranties can provide some coverage for home systems equipment. However, in addition to being expensive, some warranties restrict the types of equipment, labor and parts required to replace or repair some home systems. Service contracts and warranties can also exclude any breakdowns resulting from improper maintenance, or errors made during installation, which can be costly.
McSweeney & Ricci’s Private Client Group specializes in the unique insurance needs of successful individuals and families. We’ve partnered with select premium insurers Chubb, Pure, Cincinnati, Berkley One, Hanover Prestige, and Vault to offer customized insurance protection and concierge-level service. Our Private Client Group provides high value home insurance, car insurance, valuables and collections coverage, Yacht and Boat insurance, cyber fraud protection and more to thousands of clients throughout Massachusetts, to Florida and across the U.S.
Most people don’t think about the different systems within the home that keep it comfortable, efficient and secure, until one of those systems breaks. Our in-house claims service and customized insurance protection offer peace of mind that your expensive home systems are protected.
For more information on adding Equipment Breakdown Insurance Coverage to your existing homeowners’ insurance, contact our Private Client Group at (844) 501-1361 or submit for a complimentary quote on our website.