Equipment Breakdown Coverage

While standard homeowners and condo insurance provide your major insurance coverages, equipment breakdown coverage is designed to help fill coverage gaps and further protect your home’s valuable appliances and equipment.

Island Insurance provides equipment breakdown coverage to homeowners and condo customers as an automatic endorsement to qualifying policies at NO ADDITIONAL COST. To help you understand the protection you get from Island’s equipment breakdown coverage, it’s important to see how it differs from a home warranty.

How Does It Differ From a Home Warranty?

Individual home warranty plans are annual service contracts that cover major home system components and appliances that break or fail due to issues like age or normal wear and tear by repairing or replacing them. Completely separate from your property insurance and purchased directly from home warranty companies, they commonly cover system components like central air conditioning, hot water heaters, plumbing and electrical, as well as appliances such as refrigerators, stoves, washers and dryers. Typical home warranties can cost anywhere from a few hundred to over a thousand dollars a year, tend to cover the equipment specifically listed in the warranty, and have been known to include square footage limits.

What Is Equipment Breakdown Coverage?

Equipment breakdown coverage covers damage to home equipment like appliances and devices that stop working because of electrical or mechanical failure by repairing or replacing them. Like homeowners and condo insurance, equipment breakdown coverage requires you to pay a deductible before coverage kicks in, and can cover multiple appliances or devices that are damaged in your home by the same incident, such as a power surge caused by a severe storm or lightning, electrical overload, faulty wiring, or power outage, but does NOT cover equipment that becomes damaged due to reasons like normal wear and tear, age, misuse, deterioration and corrosion.

Island Insurance Equipment Breakdown Coverage

With approximately 60% of equipment breakdown claims due to damages caused by power surges and 75% of air conditioning system breakdowns caused by electric issues like short circuit, arcing or surge, equipment breakdown coverage can fill an important gap to cover damage that homeowners and condo policies do not.

Since Island Insurance automatically provides equipment breakdown coverage to homeowners and condo customers at NO ADDITIONAL COST, you can rest assured that your important home equipment and personal property are protected from loss by mechanical or electrical breakdown. The coverage is convenient and seamless – there are no expensive annual fees or separate contracts to manage apart from your homeowners or condo policy. And most of all, you’ll benefit from the peace of mind in knowing that you and the systems you depend on the most are covered.

Household equipment typically protected by equipment breakdown coverage:

• Washers and dryers
• Computers
• Dishwashers
• Refrigerators and freezers
• Ovens and microwaves
• Garbage disposals
• Heat pumps
• Heating and air conditioning systems
• Electrical service panels
• Home security systems
• Water heaters
• Well water pumps
• Sump pumps
• Surround sound systems
• Swimming pool equipment
• Televisions

Some restrictions, terms and conditions apply. Equipment breakdown coverage does not apply to normal wear and tear as equipment ages.