Typically, homeowners insurance offers protection against financial losses due to damages from certain events, like fires, but not from mechanical failures or natural breakdowns, like the breakdown of an old refrigerator. Nonetheless, if you are looking for wider protection for your home appliances, then you can include equipment breakdown coverage in your existing policy or check out a home warranty. But does homeowners insurance cover appliances? There is only one way to find out.
Does Homeowners Insurance Cover Appliances?
Well, here is what you need to know: Homeowners insurance typically covers appliances. However, the nature and level of coverage are determined by the specifics of your policy and the cause of the damage.
Here are some of the factors that affect whether or not homeowners insurance covers appliances:
- Covered perils.
Additional coverage options:
- Scheduled personal property.
- Home warranty.
- Deductibles and limits.
- Actual cash value (ACV) vs. replacement cost.
Type of coverage:
- Personal property coverage.
- Dwelling coverage.
It is important to review your home insurance policy to have an understanding of the coverage and exclusions related to appliances in your home.
When Does Homeowners Insurance Cover Appliances?
Homeowners insurance typically provides financial protection for your personal property or items, including appliances, and your home’s structure as well. Moreover, appliances are covered under the personal property part of your quote, with a standard policy offering coverage against damages from certain threats, including:
• Fire and smoke damage
If your appliances are damaged by smoke, lightning, or fire, lightning, or smoke, as well as problems with the air circulation systems in your home, you can get coverage from your home insurance policy. However, any damage caused by wildfires may not be covered.
• Sudden water or steam discharge
Homeowners insurance can cover steam discharge and sudden water, but gradual damage or neglect are not included.
• Civil unrest and theft
If your appliances are damaged or lost as a result of civil commotion, vandalism, or theft, you are likely to receive coverage.
• Wind and hail
Appliances that are damaged because of the weight of ice and snow, hail, or windstorms might be covered. However, if you ever experience flooding, you will need to get flood insurance as a standalone policy.
• Explosions
Damages due to internal or external explosions are typically covered.
• Electrical Surges
Sudden electrical surges that cause damage to appliances are usually covered. However, if you have high-value electronics, you might need to consider discussing them with your agent for better coverage.
• Freezing Conditions
Damage from freezing, for instance, burst pipes affecting appliances, is generally covered.
When Will I Not Receive Coverage?
Your insurance might not cover appliances in the following events:
- Sewer Backups: Damage from sewer backups is not typically covered unless you have a specific endorsement.
- Age-related failures: Failures due to the age of the appliance are not covered.
- Floods and earthquakes: These require separate policies or endorsements.
- Maintenance Issues: Damage from poor maintenance is not covered.
Home Insurance for Appliances
There are some standalone policies that you can check out if your homeowners insurance policy does not cover your appliances. They include:
Home Warranty
Home insurance is very different from home warranty programs. This is a service contract that pays more attention to damage from wear and tear and routine malfunctions and can complement your home insurance. With this contract, your home system and appliances are protected from damage.
Equipment Breakdown Coverage
Equipment breakdown coverage is an add-on that covers losses from appliance breakdowns, including mechanical failures, with specific limits. For instance, if you experience an appliance breakdown, this add-on will reimburse and compensate you for financial loss due to appliance deterioration.
Appliance Warranties
Appliance warranties are usually given at the time of purchase, and they cover early breakdowns. Besides, home appliances can be costly, but when you buy a new one, you have an added manufacturer warranty.
Frequently Asked Questions
What should I do if my appliance is damaged by a covered peril?
If your appliance is damaged by a covered threat, you should record the damage with photos, list the damaged items, and contact your insurance company to file a claim. You should also provide receipts or proof of purchase, which can also help with the claims process.
Can I get additional coverage for my appliances?
Yes, you can consider a home warranty for wider protection, as well as wear and tear and mechanical breakdowns, which are not covered by standard homeowners insurance. Additionally, some insurers offer equipment breakdown coverage as an add-on, which can help cover the cost of repairing or replacing appliances due to mechanical failure.
Are there any limits to appliance coverage under homeowners insurance?
Yes, coverage for personal property usually comes with a limit, which is the maximum amount your insurance will pay for a covered claim. High-value appliances may need additional coverage through a scheduled personal property endorsement to be fully protected.
