Equipment Breakdown Endorsement
Whether you have the holiday highs or enjoying summer break, nothing kills the festive feelings quicker than
if one of your appliances stops working. Whether it’s your oven, air conditioner, electronic equipment, pool
equipment, or any other appliance, when something breaks, any positive feelings quickly crash.
The good news is, your homeowner’s policy can keep your spirits afloat. With an optional equipment breakdown endorsement, your homeowner’s policy will cover your electronic equipment and appliances for power surge or mechanical breakdown. It also covers you for loss of use – if your equipment malfunction inhibits you from living on your house until it’s fixed, this coverage will pay for temporary housing.
Equipment breakdown coverage typically covers up to $50,000 worth of damage and includes a $500 deductible. The usual premium is $50.00 per year. It covers both electrical breakdown (due to power surge or supply line surge, arcing, ground faults or motor burnout) and mechanical breakdown. This mechanical breakdown applies to breaking, fracturing, or seizing of moving parts. The equipment breakdown endorsement may also apply to technological impact – where it may be more cost-effective to replace rather than repair your technology.
Wear, tear and deterioration are not covered, unless the damage is sudden and accidental. For example, if your compressor coolant line gets a pinhole leak – this can cause the compressor to crack. If it does, this is wear and tear on the line – which normally isn’t covered. This time it is though because the compressor damage is sudden and accidental.
Typically, deterioration is excluded, but ensuing losses may be covered.
Service Line Endorsement
If you’re a typical homeowner, chances are you have multiple “service lines” running underneath your
property. These pipes and wires connect your home to your energy, sewer, water, and cable companies
Many homeowners are surprised to find out (too late) that repair or replacement of these lines is their responsibility, not the service provider’s. The average repair of one of these lines can cost from $3,000 to $4,000 – but can go much higher. This does not include loss of use if the home is not habitable. And these expenses aren’t typically covered in a basic homeowners’ policy. That’s why you need a service line endorsement on your policy.
Service line coverage typically covers up to $10,000 for damage and loss of use and includes a $500 deductible for around $25 per year. For coverage to apply, the incident must occur underground on the insured’s property and must be the responsibility of the insured at their primary dwelling. Coverage does not extend to septic tanks or wells on the property.
What is your peace of mind worth? If you are interested in adding this to your policy, or if you would like to learn more, we would love for you to call Day Agency in Hobe Sound, Florida today.