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At Home

What Is Equipment Breakdown Coverage?

From your smart TV to your refrigerator, the cost of technology, appliances and equipment can add up! Equipment Breakdown coverage is an optional endorsement you can add to your American Family Insurance homeowners policy or renters policy to help protect all the equipment that keeps your house running and makes it feel like home.* Whether you own a home or rent an apartment, the added protection of Equipment Breakdown coverage can give you peace of mind and help prepare you for the unexpected.

For just a few dollars per month, this optional coverage can help cover the cost to repair or replace expensive equipment if it’s damaged due to a mechanical, electrical or pressure systems breakdown. It works with your current homeowners or renters policy and can really pay off when you need it most. Simply pay your deductible and we’ll cover the rest — up to your Equipment Breakdown endorsement’s limit.

Equipment Breakdown Coverage Basics


Power surges can wreak havoc on sensitive electronic circuits and even permanently damage your technology. If something suddenly damages or destroys your favorite tech, you could be out thousands of dollars. Equipment Breakdown coverage can help you manage the cost of repairing or replacing these items.

Your Technology


  • Cameras
  • Desktop computers and laptops
  • Home security systems
  • Smart home devices
  • 3D printers

When appliances break down suddenly, the cost to repair or replace them can range into the thousands. Equipment Breakdown coverage can help reduce your out-of-pocket expenses — and protect your savings — if the malfunction is covered under the policy.

Your Appliances


  • Air conditioning window units
  • Chest freezers
  • Dishwashers
  • HVAC systems
  • Stoves and ovens
  • Washing machines and dryers

Love to stream movies, play video games or listen to music at home? Equipment Breakdown coverage can help protect your media devices and audio equipment if they get damaged or destroyed due to power surges or other sudden covered breakdowns.

Your Entertainment Systems


  • Audio amplifiers
  • Flat screen TVs
  • Smart speakers
  • Surround sound systems
  • Video game consoles
  • Virtual reality (VR) headsets and systems

If your water heater suddenly stops working due to a covered loss, optional Equipment Breakdown coverage can help you cover the cost of having it repaired or replaced, so you can get back to enjoying hot showers without needing to empty your savings account.

Your Water Heater


  • Conventional water heaters
  • On-demand water heaters

Why Homeowners Need Equipment Breakdown Coverage

The things you use all the time at home can break unexpectedly. Dishwasher motors go out and washing machines suddenly stop working. Swimming pool filtering systems and heating and cooling equipment can fail, too.

Equipment Breakdown coverage can help limit the out-of-pocket costs you might need to pay if appliances, smart home devices and other technology stop working. This additional coverage can help you get many key appliances and equipment in your home up and running again. And in most cases, costly out-of-pocket expenses can be limited to the amount of your Equipment Breakdown deductible.

Plus, if your outdated appliances need to be replaced, Equipment Breakdown coverage will also pay the additional cost — up to 50% more than the value of the item — to upgrade them with a current Energy Star or energy-efficient model.

Why Renters Need Equipment Breakdown Coverage

If you rent, Equipment Breakdown coverage can help pay for damage to any appliances or technology you own. For example, suppose your neighborhood experiences a power surge that affects your apartment, and your laptop gets fried. An affordable Equipment Breakdown policy may help you cover repair or replacement costs.

Similarly, if you bring your own appliances, such as an AC window unit or chest freezer, to the house or duplex you’re renting, they would also be protected if you have this additional coverage. Keep in mind, though, that normal wear and tear isn’t covered.

Contact Your Agent for an Equipment Breakdown Insurance Quote

When you connect with your American Family Insurance agent about your Equipment Breakdown coverage options, set aside some additional time to review all your policies.

Be sure to ask about discounts you may be eligible for such as AutoPay, Paperless and Smart Home. It’s also a great time to find out how much you could save by bundling your home and auto policies with American Family. You’ll find your agent is an expert at customizing policies that fit your exact needs and budget, which means making sure you get just-right protection for your lifestyle and the just-right savings for your wallet.

*Coverage provided by adding the Equipment Breakdown optional endorsement. Coverage provides protection should appliances, home systems or smart home devices be damaged due to mechanical, electrical or pressure systems sudden breakdown. Does not provide coverage for breakdown caused by normal wear and tear. Coverage applies once a $500 deductible has been met.