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Equipment Breakdown Coverage: What, How, and Why | Eagle Insurance

Updated: Aug 15, 2023

Homeowners insurance is important to protect your home and belongings in case of any emergencies or damages. However, when it comes to equipment breakdown coverage, many homeowners are unaware of what it is and how it works. In this post, we will explore what equipment breakdown coverage in homeowners insurance is, what it covers, and why you should consider getting it.


Key Takeaways

  • Equipment breakdown coverage helps cover your household appliances when they're damaged because of an electrical or mechanical failure.

  • While not included in most homeowners policies, most insurance providers offer equipment breakdown coverage as an optional add-on.

  • Equipment breakdown coverage generally won't cover appliances that break down due to normal wear and tear.

What is Equipment Breakdown Coverage?

Equipment breakdown coverage is an optional coverage that you can add to your homeowners insurance policy to help cover sudden and accidental breakdowns of appliances or systems in your home due to mechanical, electrical, or pressure system failures. This coverage is not included in a standard homeowners insurance policy, so it's important to check with your insurance company whether this coverage is available and what it covers.

What does Equipment Breakdown Coverage Cover?

Equipment breakdown coverage generally covers the cost of repairing or replacing items in your home that have been damaged or broken due to a covered peril. Covered perils typically include power surges, mechanical failure, electrical arcing, even sometimes boiler malfunction. Items that are typically covered under equipment breakdown coverage include heating and cooling systems, appliances such as refrigerators, dishwashers, and washer and dryers, and electronic equipment such as computers and televisions.

One of the benefits of equipment breakdown coverage is that it can cover the cost of repairs or replacements of items that are not typically covered by other parts of your homeowners insurance policy. For example, if your air conditioning system breaks down due to a covered peril, and it is not covered under your standard homeowners insurance policy, the equipment breakdown coverage can help cover the cost of repairs or replacement.

How Much Does Equipment Breakdown Coverage Cost?

The cost of equipment breakdown coverage varies depending on the insurance provider, state, and policy's terms and conditions. Still, it typically costs between $30 and $50 per year, which is affordable considering the amount you could save if your equipment fails unexpectedly.

Nice To Know:

Not all insurance companies offer this optional coverage, while others package it along with other optional coverages and offer it at a discount. Its important to review your options and ask your agent or insurance company.


In summary, equipment breakdown coverage is an important coverage to consider adding to your homeowners insurance policy to protect you from unexpected breakdowns of your home's appliances or systems. It can provide additional protection beyond your standard homeowners insurance policy, help cover costs that may not be covered by other parts of your policy, and provide peace of mind for sudden and accidental breakdowns.


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