Equipment Breakdown Coverage
Celina Insurance Group explains Equipment Breakdown as: Protection against unexpected repair or replacement costs due to mechanical, electrical, or pressurized systems breakdown.
Western Reserve Group adds: It Covers What Most Homeowner Insurance Excludes. Most homeowner insurance policies don't cover the cost of repairing or replacing essential equipment in your home when it breaks down. Extended warranties? They're often expensive, hard to manage, and usually cover just one piece of equipment.
Homeowner Equipment Breakdown coverage offers a simple, comprehensive and affordable solution that covers what most homeowner policies exclude.
What does the typical homeowner need to know about Equipment Breakdown Coverage (EBC)?
1. It covers things in your home like heating and air to refrigerator, water heater and water softener for breakdowns in electrical, mechanical or the pressure system.
2. It has a deducible. As with any other structure/content coverage on your policy, a deducible will apply to EBC. That means that small repairs may not be covered. Deducible will vary by company and policy. Be sure you are aware what your policy offers.
3. It will repair if possible and replace only if absolutely necessary. Not all failures are complete losses just like not all fires require the house to be completely rebuilt. If the equipment can be fixed for a cost less than the replacement EBC coverage will simply repair what you have.
4. Replacement, if necessary, will be with comparable type and quality. Keep in mind that if you have a $700 refrigerator, that is what insurance will pay if you need a replacement. There are usually options when it comes to this. Most insurance coverage will allow the homeowner to upgrade to a better/higher cost product at their own expense. So if you want to replace that $700 fridge with a $3000 one, you can but it will cost you the policy deducible plus the difference out of pocket.
5. Equipment Breakdown is not a maintenance policy. EBC is not for items that simply wear out. Wear and Tear is something that is excluded by EBC.
EBC coverage varies from one carrier to the next and is not offered as an optional coverage by every insurance company on their homeowner insurance policy.
To discuss if Equipment Breakdown Coverage is right for you, please contact us by email or at 937-962-2123.
Western Reserve Group Insurance EBC Brochure
Western Reserve Group Personal Insurance Brochure