What Is Equipment Breakdown Coverage?

From your sound system to your refrigerator, the cost of technology, appliances and equipment can add up! And whether you own a home or rent an apartment, you’ll want to consider the added protection of equipment breakdown coverage. For just a few dollars per month, this added coverage can help cover the costs to repair or replace important pieces of equipment. 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 with sensitive circuitry. If something suddenly damages or destroys your smart home systems, desktop computer, laptop or tablet, you could be out thousands of dollars. With this coverage, you can protect your savings and your technology against the permanent damage that power surges can cause.

How Does Equipment Breakdown Coverage Protect Your Tech?


  • Laptops
  • Home security systems
  • 3D printers
  • Cameras

When your home’s key systems and appliances break down suddenly, you can find peace of mind with equipment breakdown coverage. Because the costs to repair or replace these items can range into the thousands, your savings can be protected if these items no longer operate correctly due to a covered event.

How Are Your Major Appliances Covered?


  • Washing machines
  • Dryers
  • Dish washers
  • HVAC systems
  • Stoves and ovens
  • Air conditioning units

You wouldn’t call it home without the ability to stream your favorite shows and listen to your custom-built playlists. When something happens that damages or destroys your media devices and audio equipment, you can be better protected and get your system back in working order with equipment breakdown coverage.

Are Entertainment Systems Insured?


  • Flat screen TVs
  • Audio amplifiers
  • Surround sound systems
  • Smart speakers

If your water heater suddenly stops working, you need to find an answer quickly. When the unexpected happens and your water heating system needs to be repaired or replaced, you can have options with an added endorsement like this.

Will Your Water Heater Be Covered?


  • On-demand water heaters
  • Conventional water heaters

Why Renters Need Equipment Breakdown Coverage

Renters need this coverage to protect their belongings if a sudden breakdown occurs because of mechanical or electrical failure. Suppose a truck backs into a power pole in your neighborhood sending a power surge through the electrical system of your apartment. If the power surge damages your laptop computer’s circuitry, your equipment breakdown coverage can help you pay for the resulting repair or replacement costs after your equipment breakdown deductible is paid.

It’s affordable insurance that covers the appliances you own in your rental too. So, if you moved into a rental home with your own refrigerator and stove, the appliances would also be protected under this coverage. Keep in mind, though, that normal wear and tear isn’t covered.

Why Homeowners Need Equipment Breakdown Coverage

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

Additional coverage like this can help you to get many key appliances and equipment across your home up and running again. And in most cases, costly out-of-pocket expenses can be limited to the amount of your deductible. And 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 it with a current EnergyStar or energy-efficient model.

This is key coverage that works with your current homeowners policy. Your home’s full of things you cherish, and they need great protection. And because this coverage helps pay for expensive repairs, it can really pay off when you need it most.

Contact Your Agent for an Equipment Breakdown Insurance Quote

While you’re considering your equipment breakdown coverage options, put some time aside and connect with your American Family Insurance agent. With them, you can review the ways they’ll help you protect the items in your home. You’ll find our agents are experts as customizing a policy that fits your exact needs and your budget.