Equipment Breakdown Coverage for Your Home, Do You Need It?

Our homes are where we grow our families and shape our lives. Naturally, you do a lot to protect your home, from choosing only the best contractors for those home improvements to selecting the right homeowners policy. You care for it, do all the right upkeep and maintenance to keep it looking its very best. Unfortunately, even the most well-maintained homes can suffer from a costly and unexpected loss of a complex piece of equipment. The fear of these costly repairs drives many homeowners to seek out home warranties, but these are often expensive and you usually need more than just one as they have limited coverage. At ERIE, we don’t think that’s right, so we decided to do something about it. That’s why we introduced our Equipment Breakdown coverage for your home. Unlike a separate home warranty, this coverage is an endorsement added onto your current home policy.

What’s Covered Under Equipment Breakdown?

So, what is Equipment Breakdown coverage? Well, think of it as a cushion. It is an optional endorsement (an add-on) on most homeowners' policies, also offering sewer and drain backup coverage.¹ This coverage is designed to protect you during an unexpected breakdown of a major appliance such as:

• Heating and air conditioning
• Water heaters
• Major appliances
• Electrical panels
• Home security systems
• Sump pumps
• Home theater equipment
• Computers
• Smart home technology
• Deep well pumps

This list (plus more!) is all covered under the endorsement; again, another notable difference between this endorsement and a standalone home warranty. Often, home warranties cover the major items but cannot extend that coverage to the level our Equipment Breakdown coverage can. As an added bonus, while also keeping the health of our environment in mind, if the equipment needs to be replaced, we will replace it with Energy Star or “green” equipment. This helps us ensure old equipment is upgraded to be better for the environment, safer, or more energy efficient than before.² In the event of an equipment failure, home warranties are often a “pay out of pocket” and then reimbursed weeks later type of situation. With us, your claim gets handled by our award-winning claims service, which tends to everything. If the equipment needs to be replaced, you get to decide what you replace it with, such as features and color, to ensure it matches perfectly in your home. We cover the cost immediately, so there is no waiting weeks on end to be reimbursed for your claim.

What Isn’t Covered?

Equipment Breakdown coverage does have its limits, as all insurance policies do. The major disqualifier on coverage is if the breakdown is the result of neglect or normal wear and tear. For example, if the furnace stops working because of a clogged air filter, that is a regular maintenance piece that is not covered. Another instance that would not be covered under this endorsement is if your appliances are damaged or destroyed in a different covered loss, such as a fire. This example would qualify those appliances for coverage under your standard homeowners' policy instead of the endorsement. At our agency, we’re all about delivering unexpectedly great home insurance coverage. We want to bring you peace of mind in as many ways as possible, including unexpected breakdowns of expensive home systems and appliances. Talk to your local agent today to learn more about this coverage and all the other great endorsements we offer! ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information. The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.  Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.  The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York.  Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time. Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.