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Equipment breakdown coverage

Protection for your home’s essential systems

Equipment breakdown coverage helps you manage the risk of unexpected equipment failures caused by electrical, mechanical or pressure system breakdowns (that’s not due to regular equipment wear and tear.)1

Why equipment breakdown coverage matters for homeowners

From your furnace and air conditioner to your oven and refrigerator, your home systems, appliances and mechanicals represent a significant investment. Equipment breakdown coverage is a simple add-on to an existing homeowners or condo policy that helps fill gaps where a standard homeowner’s insurance policy stops.

Equipment breakdown coverage details

Typical homeowners policies cover only specific damages; however equipment breakdown coverage can help offer a safety net when other insurance falls short. Repairs or replacements to appliances, mechanicals and home systems may be covered if a sudden, unexpected electrical, mechanical or pressure system breakdown occurs. Let’s review the coverage details.

Feature Equipment breakdown coverage2
Approximate cost to the member per year $39 – $45 (varies by state)
Maximum claim $50,000 ($500 deductible)
Spoilage $3,000
Equipment covered All real and personal property
Ease of repair Homeowner’s choice of repair company
Additional living expenses Included

Equipment breakdown coverage details

This coverage aids in protecting the essential systems in your house that help keep it running smoothly. Examples of items that may be covered (subject to policy terms) include:

  • Plugged-in electronics (including computers and laptops)
  • Audio equipment and televisions
  • Appliances like a refrigerator, dishwasher, oven, washer or dryer
  • Mechanicals such as a furnace, air conditioner and water heater
  • Systems such as a media system, pool filtration system, home security system or heating system
  • Solar panels
  • Electrical service panel
  • Ceiling fans
  • Smart lighting

Loss scenarios

Equipment breakdown coverage can help bring peace of mind. Let’s review several loss scenarios3 that help illustrate why you may want to consider this coverage.

  • A storm caused a power surge while several laptop computers were charging, and the items were damaged beyond repair; replacement cost example: $3,500
  • A refrigeration unit overheated due to an internal part breaking that led to the mechanical breakdown of the compressor; repair cost example: $1,400 and food spoilage replacement cost example: $200
  • A cast-iron boiler dry-fired due to a low-water condition and several sections on the boiler cracked; replacement cost example: $7,000
  • A furnace had an electrical breakdown that damaged the fan motor and circuit board; repair cost example: $1,600

Please note, deductibles apply.
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Frequently asked questions
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A. This coverage helps you manage the risk of unexpected equipment failures caused by electrical, mechanical or pressure system breakdowns that are not due to wear and tear.
A. Not necessarily. A typical homeowners policy may cover damage from specific perils. This endorsement helps ensure that items such as furnaces, ovens, laptops and more are protected from unexpected equipment failures caused by electrical, mechanical or pressure system breakdowns.
A. Examples of items that may be covered (subject to policy terms) include plugged-in electronics (such as computers and laptops), audio equipment and televisions, appliances (such as refrigerators, dishwashers, ovens, washer and dryers), mechanicals (such as a furnaces, air conditioners and water heaters), systems (such as a media system, pool filtration system, home security system or heating system), solar panels, electrical service panels, ceiling fans, smart lighting and potentially more.
A. Equipment breakdown coverage must be added on to an existing home or condo policy. This coverage can be added at new business or renewal only.
A. The cost of coverage varies by state, but it is approximately between $39 – $45 per year.2
Contact your agent or find an agent to get more details.

[1] Equipment breakdown coverage is available on home or condo policies and can be added at new business or renewal only. Wear and tear are excluded as a cause of loss.
[2] Equipment breakdown coverage varies by state and the coverage details and cost are as of October 2025.
[3] The examples are for informational purposes only. Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.