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.