Why a Breakdown Doesn’t Have to Be a Meltdown

February 7, 2019

Say your 2-year-old water heater unexpectedly bursts, spilling water everywhere and damaging your floors and belongings. Your homeowners policy will pay to correct the damage, but who’s paying for a new $1,500 water heater?

If you’d like that answer to be “not me” (because who wouldn’t?), consider Equipment Breakdown coverage.

What is Equipment Breakdown?

Equipment Breakdown is an endorsement added to your existing homeowners policy for a very minimal fee – usually only $2 or $3 per month. In the event of an unexpected failure or breakdown (that is, something not caused by old age, normal wear and tear, or corrosion), Equipment Breakdown coverage will pay to replace any covered appliance with a product of like kind and quality. You simply pay the low deductible, and your insurance company picks up the rest of the tab.

What items are covered?

Typical household items covered by Equipment Breakdown include, but aren’t necessarily limited to:

  • Washers and dryers
  • Computer equipment
  • Dishwashers
  • Refrigerators and freezers
  • Ovens and microwaves
  • Garbage disposals
  • Heat pumps
  • Heating and A/C systems
  • Electrical service panels
  • Home security systems
  • Water heaters
  • Well water pumps
  • Sump pumps
  • Surround sound systems
  • Swimming pool equipment
  • Televisions/plasma/LCD

How much does it cost?

Equipment Breakdown is an affordable alternative to the often costly and confusing extended warranty plans sold by retailers, so if you accidentally threw out that paperwork with the packaging, don’t sweat it. Adding this coverage to your policy typically only costs $2 or $3 a month!

Deductibles are low, too – Safeco’s is $500, as are those of most other carriers. Compare that to the cost of replacing a major appliance or system, and the value speaks for itself.