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New Homeowners Insurance Coverage – Equipment Breakdown 1/17/2017 Homeowners insurance companies are starting to introduce the endorsement Equipment Breakdown Coverage.

New Homeowners Insurance Coverage – Equipment Breakdown

 

Homeowners insurance companies are starting to introduce the endorsement Equipment Breakdown Coverage. This endorsement covers the perils of mechanical, electrical, and pressure systems breakdown, which are perils that were excluded on standard homeowners insurance policies.


The household items that will be protected by this endorsement include, but not limited to:


• Washers & Dryers
• Dishwashers
• Heating & Air Conditioning Systems
• Water Heaters
• Televisions
• Computers
• Sump Pumps
• Electrical Service Panels

 

Equipment Breakdown Coverage Examples:


• Central air conditioning system sustained electrical burnout. Total cost to replace the system was $10,024.
• Overuse of a heat pump system caused internal damage to the compressor. Replacement cost of the compressor and the refrigerant including labor cost was $8,008.

 

The cost of the endorsement will range from $35/year to $120/Year.