Home Equipment Insurance, Should I Add It To My Homeowner’s Policy?

Sep 12, 2022 | Personal Insurance

What is equipment coverage? Do I need it? Should I include it in my homeowner’s policy? These are just some of the questions most people ask, especially now that technology and advanced home equipment have replaced old appliances. With high technology, most homes today have smart home technology. In this article, we will discuss home equipment insurance.

From controlling the lights, adjusting the thermostat, and filling the house with good music, to keeping a watchful eye on your home even if you are away, we are now in a digital age where having these smart devices becomes a necessity rather than a luxury. Voice controls, mobile phone apps, remote controls, and CCTVs are just a few of the things that make our life simpler and more advanced. With just a few clicks, you can multitask at home without having to continuously and manually check on every appliance that you are using.

Equipment Breakdown Trouble

What would you do with all these smart devices if there is mechanical trouble or electrical problem? And what will you do if there is a sudden power outage in your electrical panel? What would you do if your new air conditioner suddenly conked out? Or what if your water pump broke? Can you imagine how much all of these problems can cost you? A few hundred dollars? A thousand dollars?

Money that will come out from your own pocket to have them fixed or replaced. Not to mention time and labor costs and other expenses.  The cost might even be bigger if multiple types of equipment break down simultaneously. What can you do? How can you avoid the high cost of repairs and replacement? This is where home equipment insurance added to your homeowner’s policy comes in.

What is an Equipment Coverage/Home Equipment Insurance?

Equipment Coverage or Home Equipment Insurance refers to an added coverage to your homeowner’s policy or home warranty that gives you additional protection for your personal property should your home system and equipment or major appliances break down due to mechanical or electrical failure. 

Normally, we buy a piece of home equipment or appliances like a freezer or refrigerator and get a maximum of one year warranty from the manufacturer. If you buy a microwave oven, you get the same warranty. If you get a new air conditioner, the manufacturer or distributor will also give you limited warranty coverage. Although there is an option to get further warranties, the cost of paying extra for each of the pieces of equipment you have at home will add up to a huge amount, not to mention the new home and security system that you just installed.

Imagine having to keep all those warranty information from the manufacturers and retailers and ending up not using them when the need arises because the limited warranty already expired. 

More about Equipment Coverage

This is when you need equipment breakdown coverage. Instead of having a variety of warranties and extended warranties for different appliances and home systems, you only get one equipment breakdown coverage that you can add to your homeowner’s policy to cover the cost to repair or replace any damage that may occur from any mechanical and electrical failure of your equipment.

It is an added coverage to ensure that repairs and replacement, labor costs, and other expenses will not be coming out of your pocket when the need arises. Equipment breakdown coverage is necessary if you have high-tech appliances, home security systems, and other equipment with mechanical or electrical systems. It is an inexpensive way to protect you from additional expenses at home.

Should you Add Equipment Breakdown Coverage to your Homeowner’s Policy?

Adding equipment coverage to your homeowner’s policy will depend on the kind of equipment and home system you have in your house. If you have traditional appliances and systems like manual switches, basic ovens, and other aged appliances, then, you can think twice before availing of this coverage.

However, with advanced technology added to different equipment around the house, you may have more than one smart home device right now and it certainly is wise to get the equipment coverage to avoid unexpected expenses in the future. 

The equipment breakdown coverage is designed to help you when you have that extra security system at home. It helps when you have those new digital appliances that you bought or gifted to you. It is a cover that you can use when your oven suddenly breaks. Or when your home alarm system goes haywire. Repairs or replacement of parts and equipment will be covered on the most advanced appliances or systems in your house. 

Getting the equipment coverage as an added security for your home will definitely give you that peace of mind for you to enjoy the new technologies that are available for your homes. Also, everything will be easy for you and your family with the advanced features available in your house. 

What are some of the equipment covered by equipment breakdown coverage?

  • Heating and cooling systems
  • Home automation and security systems
  • Major appliances like refrigerators, ovens, air conditioners, dishwashers, washing machines, and the likes
  • Computers and software systems
  • Electrical systems 
  • Well pumps, boilers, furnaces
  • Swimming pool equipment
  • Home entertainment equipment
  • Generators
  • Lawn care equipment
  • Elevators
  • Gym equipment

What are some exclusions in equipment coverage?

  • Wear and tear of equipment and appliances that include rust, erosion, molds, deterioration
  • Damage caused by pests
  • Equipment that is old and poorly taken care of 
  • Declining functionality of the equipment

Equipment coverage is probably one of the most neglected policies. Having new appliances and equipment at home makes the owner think that every piece or system will work for many years to come, thus overlooking the need for this equipment coverage. When you go out and buy a new mobile phone, you wouldn’t think of buying that extra warranty that most sellers offer because you think your phone will be outdated in a year or two anyway. And after a few months, your phone conks out.

Cost of Equipment Coverage

The cost of equipment coverage added to your homeowner’s policy will depend on your coverage and deductible amount. The lower the deductible, the higher the rate for the coverage. Your decision regarding the amount will depend on what kind of equipment you have that you think should be covered and how many appliances are most likely to be a problem in the future and should be included in your calculations. You can also ask your insurance agent how you can maximize your coverage together with your homeowner’s policy. 

Is Equipment Coverage Worth it?

Equipment coverage is definitely worth it. The cost of buying new equipment or repairing a busted one is way more expensive than paying for equipment coverage. It is necessary for most homes nowadays as we are now in the smart devices era where almost everything has an automation system. The cost of having coverage is very minimal when added to your home insurance. You could literally save thousands when mechanical failures and electrical breakdowns occur. This will definitely fill the gaps in a typical homeowner’s insurance. It is always better to foresee possible equipment problems rather than waiting for them to happen and not having any coverage at all.

Having equipment breakdown coverage is essential. Not everybody knows about it but if you have a good grasp of your home insurance policy, you will know what are the inclusions and exclusions in your coverage.

Does Home Warranty Have Equipment Breakdown Coverage?

While a Home Warranty can cover the wear and tear of appliances and electronics, any accidental damages would not be covered. That said, it doesn’t include equipment breakdown unless to get that is added to the policy. But what does a home warranty cover exactly?

What Does a Home Warranty Cover?

A home warranty is a standalone policy that enables coverage to fix or replace the parts of electronics and home appliances in your property because of factors like age and regular use over the span of time. Things like HVAC systems, plumbing, electronics, and home appliances can be included for maintenance, servicing, replacement, or breakdown.

It’s crucial to understand that every home warranty coverage will differ. Many domestic assurance coverages have limits, so it’s best that you recognize what your policy does or doesn’t cover.


Getting extra coverage will be worthwhile in the long run. You will be at ease knowing that your home is insured with the necessary coverages that are needed to protect your house. The cost is minimal and the benefits outweigh the expense. Just make sure that you get a knowledgeable insurance agent to get the maximum benefit for your home and equipment. Getting the best coverage is always the right decision.

We Can Help You With That!

Are you ready for one of the top independent insurance agencies in Denver, CO, and in the country? Contact us today and we will find the best insurance for your needs.

DISCLAIMER: Please note that some of Advantage Insurance Solutions’ articles may have affiliate links from the Amazon Associates Program, with no additional charge to the reader. Before we publish a review, we utilize and evaluate the products we recommend. In addition to the products we’ve personally tested, we’ve received recommendations from many of our readers. That said, we want to make sure it is clear that if you use our links to purchase something, we will receive a small compensation from it. Thank you.