Home Equipment Breakdown: Here’s Why You Might Need It

February 13, 2019 4 min read
People upset about equipment breakdown

Cold winter months can cause havoc on your home. Equipment like heating, cooling, and appliances are integral parts of your home. Any idea what you would do if your furnace stopped working in these cold winter months? We all know that household appliances aren’t going to work all the time, so that’s why it’s a good idea to check out equipment breakdown coverage for your home. Most homes today have many expensive, modern pieces of equipment that contribute to the normal operation of the home and in turn, can add up quickly if needing to be repaired due to an insured peril. Breakdowns can happen when you least expect it, but you can be prepared with home equipment breakdown coverage.

What is Equipment Breakdown Coverage?

This coverage acts as an extension to your homeowner’s policy and protects many of the essential equipment you rely on day-to-day. Think of it as a product that fills in the gaps in your primary home policy. In the event of an unexpected breakdown due to electrical or mechanical issues, this coverage will help with the financial costs associated with getting your house and life back to normal. Normal wear and tear and/or corrosion are not covered under this policy; it is specifically designed to cover sudden, unexpected breakdown due to insured perils.

How much is Home Equipment Breakdown?

It varies depending on which insurance provider you are with, but on average it is $50-100 per year. Compare that to the cost of replacing a furnace and it’s really quite affordable! It’s easy to budget in life when you can identify costs in the future; unfortunately, life isn’t always that easy so it’s important to analyze what is best for you, your family and home. Imagine your furnace stops working in the middle of a cold -40 degree night, you won’t have time to save up your funds to pay for the repair. Equipment breakdown coverage provides peace of mind knowing that you will be covered financially to get your furnace repaired to ensure your home gets warm and stays that way.

Examples of equipment breakdown coverage in action:

  1. It’s a hot prairie summers day and you realize that your home is getting increasingly hot. You go to check your air conditioner to find that the compressor has failed and needs to be replaced. Your equipment breakdown coverage will cover the costs after the deductible has been paid so that you don’t have to worry about the financial burden which can average $7,000 to be replaced.
  2. A busy family means a busy washer and dryer. When you go to start the dryer, you realize it’s not working properly only to uncover that the motor has burned out. It’s the middle of winter and you can’t get through hanging your families clothes outside, so you need to get the dryer repaired. Typical costs can average $2,000. After you pay your deductible, the costs are covered and your family will have dry clothes soon again!
  3. You go to your utility room to find that your hot water heater has ruptured and you realize that you and your family won’t have hot water as well as escaped water in your home. You’re covered so that you don’t have to pay the typical cost of $4,100 out of pocket!

What are examples of equipment that is covered?

Based on your insurer, the coverage can be different; however, the following are examples of equipment most often covered:

  • Air Conditioner
  • Computer Equipment
  • Dishwasher
  • Kitchen Refrigerator
  • Microwaves
  • Ovens
  • Electrical Generators
  • Furnaces
  • Electrical Generators
  • Washer/dryer
  • Electrical Panels
  • Televisions
  • Sump Pump
  • Furnace
  • Swimming Pool Equipment
  • Fans
  • And More

Your MIG broker can work with you to ensure the equipment that keeps your home running is protected against sudden, costly repairs. Contact us today to find out more!

Written by

Alex Harms is part of our marketing team at MIG Insurance and she specializes in writing content to make insurance easier to understand for our clients. She obtained her Bachelors in Commerce (Hons.) at the Asper School of Business and worked with MIG as a broker during her studies and now fulltime in a Marketing & Operations role. She has taken on many tasks her at MIG but enjoys the challenge. Outside of work she enjoys spending time with her family as well as her dog Murphy, out at the lake which is their favourite spot!