Updated February 4, 2020 . AmFam Team
Appliances can be expensive to repair or replace, and damage can be unpredictable. Understanding your coverage options is key to having peace of mind that the things you worry about are protected. So does your home insurance cover your appliances? The answer is yes — there are a few types of homeowners insurance coverage options that can help protect your appliances, including personal property coverage, equipment breakdown coverage and sump overflow coverage.
We’ll take you through how homeowners insurance can help protect your appliances, so you can keep fearless if the unexpected happens.
Personal property coverage — which is part of your standard homeowners policy — is there if your appliances are damaged or destroyed by things like a house fire, a tornado, vandalism or even if they’re stolen. It will also help in the event of water damage caused by a sudden event, like a burst pipe or storm damage to your roof that causes a leak.
Your personal property coverage can help pay to replace appliances up to your coverage limits, so you’ll want to make sure those limits are high enough to cover the cost of new appliances. And if you have a particularly expensive or sentimental appliance, like an antique oven or custom-made refrigerator, you might consider scheduling that item to protect it from more types of loss.
You’ll also have to account for your homeowners insurance deductible when deciding whether or not to file a claim for a damaged appliance. For example: your electric oven is damaged by a short circuit and would cost $800 to replace, but your homeowners deductible is $1,000. In this case, you wouldn’t want to file a claim because the cost of your oven is lower than your deductible.
Equipment breakdown coverage is additional coverage that can help you protect your finances if your appliances suddenly break down. Because your standard homeowners insurance policy doesn’t cover appliance breakdown, you’ll need to add this coverage to take advantage of its benefits.
Hot water heaters can be covered by equipment breakdown coverage added to a homeowners insurance policy. Sometimes, hot water heaters are considered part of your home and are covered by your dwelling coverage. But usually, your standard homeowners policy won’t cover your water heater, so you’ll have to add equipment breakdown coverage to protect it.
If your hot water heater is damaged beyond repair by a qualifying event, your equipment breakdown coverage may cover the cost of replacing your hot water heater.
Depending on how your TV is damaged, the personal property insurance coverage on your homeowners policy could cover the cost of replacing a broken television. If your TV is damaged or destroyed in a fire, tornado or other event covered by your home insurance, your personal property coverage is what would apply to replace it at its actual cash value.
If you have a particularly expensive TV, you may want to consider scheduling it as itemized personal property to cover it for more types of damage up to its replacement cost value.
Under equipment breakdown coverage, most large kitchen appliances are covered by homeowners insurance. Some types of kitchen appliances covered by this insurance include:
Because equipment breakdown coverage won’t cover normal wear-and-tear, you’ll want to make sure your kitchen appliances are in tip-top shape. Regularly inspect your appliances and pay attention to any drops in performance or funny noises they might be making. And, in the event a part does break suddenly, you’ll be ready to handle it by calling your insurance to file a claim.
Water can damage a lot more than just your floors — it can really wreak havoc on appliances, too. While your standard homeowners policy has coverage for damage caused by sudden leaks or storms, it won’t cover damage caused by a busted sump pump that backs up into your basement. This is where optional sump pump overflow coverage comes in.
With sump pump overflow coverage, if your sump pump fails and the resulting water backup damages the appliances in your basement, your insurance can help to pay to repair or replace those appliances.
When it comes to protecting what matters most, you have options for how much you’ll pay. While your standard homeowners policy can help protect your appliances in some circumstances, adding extra personal property coverage and equipment breakdown coverage can make a big difference if the unexpected happens.
Another thing to consider is what your insurance company can offer you. Talk to your insurance agent about bundling your policies or customer loyalty discounts to see if you can save on your home insurance.
Ready to learn more about homeowners insurance? Or are you ready to commit and need a quote? Connect with your American Family Insurance agent (Opens in a new tab) to get the download on all things homeowners insurance.