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Equipment Breakdown Coverage

What Is Electrical Appliance Coverage?

Our lives are connected to more new and advanced personal devices and appliances than ever before. From gaming consoles to stereo systems and personal computers to smart home devices, tech gadget lists in the average household seem to grow each year. While fun, convenient and efficient, all this cutting-edge technology comes at a cost when things go wrong and your prized possessions breakdown.*

Repairing equipment following an incident in your apartment or condo can get pricey. That’s why it’s important to know what your options are for adding electrical appliance coverage** to your insurance.

Electrical appliance coverage** is added coverage that offers protection should your gadgets, home systems or smart home devices be damaged due to mechanical and electrical breakdown. Let's take a closer look at this coverage.

What Does Electrical Appliance Coverage Cover?

Did you know that according to consumer reports, around 25 percent of new appliances fail within their first five years? And as we accrue more sophisticated and expensive equipment, the need for this breakdown coverage will increase. Having this coverage can protect you from paying the expensive repair costs that accompany a breakdown of important pieces of equipment in your home, including:

  • Smart Home security systems and devices
  • Home theater systems and televisions
  • Computers
  • Game consoles

What Does Electrical Appliance Coverage Cost?

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Starting at $20/year
For renters of condos, homes or apartments

Start your renters insurance quote today >

What Is Not Covered by Electrical Appliance Insurance?

Electrical appliance insurance can come to the rescue in many instances, but it won’t help you if your equipment has simply worn out from normal wear and tear. That’s why it’s so important to maintain your equipment by performing regular upkeep.

What’s wear and tear? Wear and tear would be damage from ordinary use that typically occurs over time, with the performance slowly declining. Mechanical breakdown, on the other hand, occurs suddenly.

An example of wear and tear would be a record player you’ve had for years that skips more often and doesn’t play with the same clarity as it did when you first bought it. Electrical appliance insurance won’t cover the cost to repair or replace this type of damage. Nor will your standard home insurance policy.

How Important Is Electrical Appliance Coverage?

You’ve come to rely on equipment  to keep your home running smoothly. And if equipment breaks down, your standard renters insurance policy won’t cover the cost to replace it — leaving you to pay out of pocket. But having this coverage will financially protect you from those unexpected expenses resulting from sudden equipment breakdown.

Let’s say electrical arcing damaged the electrical service panel in your apartment. Your television, personal computer and gaming systems are all severely damaged. The damage is beyond repair, and all the affected items need to be replaced. Your total for the appliance and equipment damage comes to $4,000. None of this is covered by your standard renters insurance policy, and you’d have to pay that cost out of pocket. However, adding electrical appliance coverage will help cover the costs to repair or replace the damages up to your policy limit after you pay the policy's $500 deductible.

Real-World Scenarios in Which Electrical Appliance Coverage Can Help

If you’re asking yourself, “when would I need electrical appliance coverage?" there are many cases when this insurance can really pay off. For instance, suppose a new stackable washer and dryer set experienced damage due to a power surge. As a result, neither unit is working at all.

Or, suppose a high-voltage power surge was sent through the neutral line of your electrical system — and now your smart home hub is damaged beyond repair. In both cases, with this important additional insurance, you’d be covered. After paying your deductible, your expenses would be covered up to this policy’s limit.

Is the Cost to Repair or Replace Home Equipment Expensive?

From home theater systems to personal computers, the cost of equipment in your home adds up quickly. Imagine if a power surge were to damage multiple pieces of equipment in your home. Would you be prepared to pay the repair or replacement costs? Most renters policies don’t protect against this kind of unexpected event. But electrical appliance coverage is an easy way to make sure you’re financially protected.

Learn More About Electrical Appliance Coverage

Want to learn more about electrical appliance coverage? Connect with your American Family Insurance agent to find out how you can add this protection to your current renters insurance policy, and gain peace of mind that you’re protecting all the things you work so hard for.



Protect Your Appliances and Home Equipment

Get started by requesting a renters insurance quote.


This coverage is not available in MN at this time.

Some coverages may not be available in your state. Please speak with your agent to learn more about your coverage options.

Electrical Appliance Coverage for renters is provided by purchasing the Equipment Breakdown optional endorsement. Refer to policy documents for coverage limits & details.

Coverage applies once a $500 deductible has been met. All statements regarding insurance coverage are general descriptions. These statements do not add or modify any coverage under your insurance policy. If there is any difference in the description of the coverage/endorsement, the policy provisions will apply. Please review your policy or call your agent for information regarding coverage that may be available to you.

*Equipment breakdown does not include equipment damaged over time as a result of regular use. Breakdown, in this case, is the result of sudden, unforeseen mechanical failure.

**Electrical Appliance Coverage is provided by and part of Equipment Breakdown Coverage.