Equipment Breakdown Coverage
What is Equipment Breakdown Coverage?
Equipment Breakdown Coverage makes your existing homeowners or renters insurance more robust, covering electronics and appliances that you own. That means everything from your furnace, heat pump, or boiler to your flatscreen TV, security system, or hot tub.
With a standard policy, your stuff is covered from a set of named perils—things like fires, windstorms, or vandalism—but generally isn’t protected against damage caused by or resulting from electrical failure or mechanical breakdown. Adding Equipment Breakdown Coverage can help protect most of the electronics and appliances in your home.
What sort of electronics and appliances are covered?
If there’s a mechanical or electrical breakdown, Equipment Breakdown Coverage may provide up to $100,000 in coverage on almost any home appliance. (One rule of thumb to keep in mind: For this coverage to kick in, your item needs to have some direct physical damage that requires repair or replacement.) Keep in mind that a $500 deductible applies to each claim.
Here’s some of the equipment that Equipment Breakdown Coverage would help protect:
- Air conditioning units
- Heating equipment (including heat pumps)
- Air tanks
- Attic fans
- Central vacuum systems
- Communication equipment
- Computer equipment
- Electric doors and locks
- Emergency generators
- Entertainment equipment
- Fiber optics
- Home gym equipment
- Hot tub and sauna
- Kitchen appliances
- Pool filter pumps
- Security systems
- Smart home technologies
- Solar panels
- Sump pumps
- Washers and dryers
- Water heaters and boilers
- Wine cellar climate control (how fancy!)
Another nice little perk; if your fridge or freezer is damaged as a result of a breakdown and all your food spoils, this add-on can provide up to $10,000 in coverage.
What’s the difference between Equipment Breakdown Coverage and a home warranty?
A home warranty is a stand-alone product which covers appliances from wear and tear, but not accidental damage, whereas Equipment Breakdown Coverage only covers a ‘fortuitous event’ that causes physical damage (and does not cover wear and tear). Put it this way, if your phone screen cracks or you spill coffee on your computer and there’s a breakdown, you’d be covered—with a home warranty you wouldn’t.
But don’t my appliances come with a warranty of their own?
They sure do! But if you read the small print, most warranties are only valid if the machine or appliance malfunctions, or if there’s a technical problem. If there’s a sudden power outage causing your 10-year-old AC to breakdown,—you can’t rely on your warranty. However, you may have coverage under Equipment Breakdown Coverage.
What does this add-on not cover?
If your equipment stops working because it’s been badly maintained, it won’t be covered. Just like other Lemonade endorsements, we won’t always cover damage resulting from erosion, rusting or leaking. So it’s just as important to keep up with general home maintenance.
How much does it cost?
If you’re adding Equipment Breakdown Coverage to your renters policy with Lemonade you’ll pay around $2/month extra on your policy (approximately $24/year) and with homeowners or condo insurance you’ll pay around $3/month ($36/year).
Why might you need Equipment Breakdown Coverage?
If your appliances are damaged during a fire or windstorm, your homeowners insurance policy might cover the cost of replacing them. However, it’s unlikely that your homeowners policy provides coverage if your appliances break because of an electronic or mechanical failure. There’s where Equipment Breakdown Coverage comes in. If you’ve added this endorsement to your policy, you may have coverage up to $100,000, and for a cost of as low as $36 dollars per year, that’s a pretty good deal.
What about a deductible?
Your deductible, aka the amount deducted from your future claims, is a fixed $500—applied to every Equipment Breakdown Coverage claim.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states.