Equipment Breakdown Coverage FAQs

Get answers to common questions members have about Equipment Breakdown coverage, plus real-life scenarios where this coverage assisted with repair or replacement costs.

What is Equipment Breakdown coverage?

The modern home contains many expensive systems and appliances subject to equipment breakdown. Equipment Breakdown coverage protects you against unexpected repair or replacement costs due to an electrical, mechanical, or pressure systems breakdown that damages your home appliances and systems.

What are some examples of covered items?

There are many items in a home that can break mechanically or electrically; for example, fridges and freezers, heat pumps, swimming pool equipment, air conditioning systems, electrical panels, computers, televisions and media equipment, and more. Here's a tip: if it uses power, it's most likely covered.

Here’s how Equipment Breakdown helped cover the cost to repair or replace damaged equipment:

• Damage From a Power Surge: A home was impacted by an artificially generated power surge. The boiler and water heater controls, security system, and media equipment were damaged. Equipment Breakdown insurance helped cover the $18,341 cost to repair the damage.
• Power Outage During a Storm: During a family vacation, a storm caused a power outage. A laptop computer and cell phone were charging when the outage occurred. When the power was restored, a voltage spike damaged the items beyond repair and required their replacement. Protection also applies to equipment breakdowns that occur away from home, so Equipment Breakdown insurance helped cover the $1,495 cost to replace the damaged items.
• Air Conditioner Electrical Failure: The homeowner’s air conditioning system experienced an electrical short, causing loss of cooling to the home. The air conditioning compressor needed to be replaced. Equipment Breakdown insurance helped cover the $3,295 cost to repair the damage.
• Freezer Circuit Board Malfunction: The circuit board in a subzero freezer arced, causing the freezer to fail. A replacement circuit board was no longer available on the market, so a new freezer had to be purchased. However, food also spoiled while the original freezer was out of order. Equipment Breakdown insurance helped cover the total $11,345 cost to purchase the new freezer and replace the spoiled food.

What is the difference between wear and tear and mechanical breakdown?

A mechanical breakdown usually occurs suddenly. Wear and tear usually occurs over time. In instances where wear and tear occurs, performance of the equipment slowly declines and its capacity diminishes; however, the equipment continues to operate but does not perform as expected.

If the equipment is operating, even at reduced capacity because of regular wear and tear, Equipment Breakdown coverage will not apply

Is there a deductible for Equipment Breakdown coverage?

Yes, there is a $500 deductible per occurrence. After the deductible is paid, Equipment Breakdown insurance will cover the rest of the repair or replacement cost for each occurrence (with a $100,000 coverage limit per occurrence).

Does the damaging event have to happen inside my home for coverage to apply?

No. Equipment Breakdown coverage applies to equipment that is damaged in your home, on your property, or when you’re away from home.

Is my equipment covered even when I’m not in my home or on my property—for example, a laptop used at college, or the GPS in my car?

Yes, our Equipment Breakdown endorsement includes off-premises coverage.

What is the benefit of adding Equipment Breakdown coverage to my homeowners policy?

Without Equipment Breakdown protection, most homeowners policies don’t cover equipment inside of a home (or equipment away from home).

How does Equipment Breakdown coverage differ from a home warranty?

A home warranty is expensive. It may also restrict certain equipment or include it at an additional cost.

By adding the Equipment Breakdown enhancement endorsement to your homeowners policy, all real and personal property is protected regardless of location—in your home, elsewhere on your property, or outside your home, such as in the car or away on vacation. This is just one of many reasons why Equipment Breakdown coverage beats a home warranty.

What happens if more than one piece of equipment breaks down at the same time?

These items can be combined together in one Equipment Breakdown claim if the cause of the damage is the same for each piece of equipment.

Can damaged equipment be replaced with more efficient equipment?

Yes, our Equipment Breakdown endorsement will pay up to 150% for replacement of equipment that is more efficient and better for the environment.

Equipment Breakdown Coverage is available to members with a Mutual of Enumclaw Homeowners policy. $100,000 coverage limit per occurrence after a $500 deductible is applied.

Writing Company Information: This endorsement is available from Enumclaw Property & Casualty Insurance Company (EP&C) for eligible members with an EP&C Homeowners policy. It is available from Mutual of Enumclaw Insurance Company for eligible members with a Mutual of Enumclaw Insurance Company Homeowners policy.

The information we share on our site is intended to serve as a general overview. Please refer to your policy or contact your local independent agent for specific coverage details.