How Equipment Breakdown Insurance is Different from Home Warranty

How Equipment Breakdown Insurance is Different from Home Warranty

The abundance of different insurance policies can make protecting your home a challenge. Understanding coverage options allows you to make effective decisions to keep your home safe from mechanical, electrical, and physical damage. Let’s take a look at equipment breakdown insurance and home warranties.

What is equipment breakdown coverage?

Equipment breakdown coverage protects against mechanical and electrical breakdowns that are not included in your homeowner policy. This type of policy helps cover the cost to repair or replace damaged equipment (including time and labor), lost income, spoiled inventory, and other necessary expenses that may arise during the restoration process. Equipment breakdown coverages are most common among businesses, , but policies for homeowners are also available. Some examples of when this coverage would apply are electrical shorts and breakdowns, power surge damage, etc.

What is a home warranty?

Home warranty and home insurance are not the same. While home insurance covers natural disasters and crime-related damage, a home warranty covers mechanical systems and appliances that break down unexpectedly. Home warranties often allow the flexibility of picking the plan that’s best for you. Plans can cover one particular appliance, all of your appliances, or all of your appliances plus electrical damage. This allows for you to choose the best plan that fits your needs. It is important to note that improper maintenance and accidental damage are not covered.

What are the differences between home warranties and equipment breakdown coverage?

Equipment breakdown coverage and home warranties are very similar, yet they have distinct differences. Both can cover appliances and systems like well pumps, garbage disposals, washers, dryers, refrigerators, dishwashers, ovens, and/or water heaters. While they both insure the same products, the eligibility requirements vary. For equipment breakdown coverage, the damage must be sudden, direct, and accidental, while home warranties can only be used for normal wear and tear.

What insurance policy is best for you?

Insurance creates peace-of-mind for homeowners, allowing you to focus on the important people and events in your life. Understanding the available plans and policies allow you to tailor the options to better fit your needs.

InsureTN is dedicated to finding the best possible policy to fit the need and price for you. Call now to set up a free appointment and explore the options at 615-964-5250.


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