Did you know there are two very affordable extended coverage options for your home insurance? Equipment Breakdown and Service Line endorsements offer additional protection to the appliances, systems and utilities in and around your home. These options are at a much lower cost and cover a wider range than home warranties and additions to your home policy.
What is equipment breakdown?
This coverage protects the electrical, mechanical or pressure systems against unexpected repair or replacement. This may include: Clothes washers & dryers, computer equipment, sump and well water pumps, HVAC and Central A/C systems.
Examples of equipment breakdown insurance
A storm caused a power outage and with it damaged your computer and other electrical equipment in your home. Replacement or repair of the damaged products may be covered only up the amount provided by the policy.
Is equipment breakdown insurance worth it?
Essentially this is extending the existing coverage your home insurance offers. The difference is the type of event and the damage inflicted. Depending on your home set up and the items you want to be covered, you’ll want to have a discussion with your agent to make sure the equipment breakdown option offered by your home policy will protect you. Not every carrier offers this coverage or some of the items you may want the extra coverage for. Also, equipment breakdown coverage offers much more protection at a much lower cost than a home warranty.
What about service line coverage?
Service line coverage will extend your existing homeowners’ policy to the underground piping or wiring that connects a home to a public utility or private system. Damage could be caused by: collapse, but not including sinkhole or subsidence collapse, electrical and mechanical or pressure systems breakdown, rust or other corrosion, decay, deterioration, hidden or latent defect.
Example of service line coverage
A tree root grows into a sewer pipe on your property causing a leak, service line coverage would cover the work required to locate and replace the damaged piping. You would be responsible for the deductible then the coverage would cover up to the limit of the policy.
Is service line insurance worth it?
The largest benefit of this coverage is the total cost of these types of repairs. If a sewer line is damaged, it may take a contractor several hours to locate, plus the cost of equipment rental and excavation. There are rarely problems with the service lines coming into our homes, but when there is an issue it disrupts everything in addition to the cost of repair. Often these policies are extremely affordable, many lower than $50 annually.
Next Steps
Both coverages (service line and equipment breakdown) are extension of your current home policy. However, not every carrier offers these endorsements, so be sure to discuss them with your agent.
Take a quick look around your home and note what items would carry a high expense of repair or replacement should an issue arise. Do you have high-end appliances that would be difficult to replace if a power surge damaged them? If a tree or vehicle damaged your service lines, could you afford to excavate and repair? Contact your Aitken & Ormond Agent to discuss your options and we can work together to find the best fit at the right price.