Equipment Breakdown Coverage

Equipment breakdown insurance, also called boiler and machinery insurance, includes two primary coverages:

  • The cost to repair or replace equipment or machinery that malfunctions or breaks
  • Lost income and property damage resulting from the downed equipment

You can add equipment breakdown insurance to your homeowner’s policy for less than $100 per year. Most policies offer $10,000 to $50,000 in coverage, but you can go higher if needed. Equipment breakdown coverage responds only when damage is due to a peril listed on your home insurance policy. Most equipment breakdown coverage includes damage caused by explosions, falling objects, fires and smoke, hail, lightning, power surges, theft, vandalism, water, the weight of ice, snow, or sleet, and windstorms. It can help with the cost to repair or replace systems and devices like water heaters refrigerators and freezers, HVAC systems, stoves and ovens, electrical systems, and more! 

Equipment breakdown coverage can also be added to your commercial property policy. While it’s true that commercial property insurance also helps with repairing damaged equipment, it only protects against harm caused by an outside peril specifically named in the policy. Common examples include fires, explosions, unnamed storms, burst pipes, vandalism and theft. It is an important protection for any business that relies on certain machinery or building systems for its operations. While it’s easy to imagine the value of this coverage for a manufacturing plant, no business should overlook the importance of this added coverage. Think of pizza parlors — no oven, no pizzas.

Equipment breakdown does not cover normal wear and tear, lack of maintenance or failure due to age. Damage or breakdown caused by rust, mold or pest damage would also be denied coverage.

Protect your budget and the things that keep your home comfortable and your business operational. Contact us, and we’ll figure out if it makes sense for you to add equipment breakdown coverage to your insurance policies!