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 through our Select Bundle, when you also have 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, which again is 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. And as an added bonus, while also keeping the health of our environment in mind, if the equipment needs 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 get reimbursed weeks later type of situation. With ERIE, your claim gets handled by our award-winning claims service tending 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 ERIE, we’re all about delivering unexpectedly great home insurance coverage, which means 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 ERIE agent today to learn more about this coverage and all the other great endorsements we offer!