Today I spoke about American Family Insurance's new equipment breakdown insurance coverage. It's a new coverage that is included with all of our homeowner's insurance policies and as of today we are the only insurance company that offers this additional coverage.
Starting at only $30/year it's just another way that American Family Insurance helps to relieve the stress and financial burdens when things go wrong.
So what does it cover?
Having this coverage can protect you from paying the expensive repair or replacement costs that accompany a breakdown of important pieces of equipment in your home, including:
- Refrigerators, ovens and stoves
- Washers and dryers
- Heating and cooling units, including furnaces and water heaters
- Home security systems
- Electrical systems
- Well pumps
- Swimming pool equipment
- Garden tractors
Do find out what's not covered click here.
How important is this coverage?
You rely on equipment like appliances, heating and cooling units, and electrical systems to keep your home running smoothly. And if equipment breaks down, your standard home 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.
Let’s say electrical arcing damaged your electrical service panel. Your boiler control, television, stove and microwave are all severely damaged. The damage is beyond repair, and all the affected items need to be replaced. Your total for the equipment damage comes to $ 8,500. None of this is covered by your standard home insurance policy, and you’d have to pay that cost out of pocket. However, adding equipment breakdown coverage would help cover the costs to repair or replace the damages up to your policy limit after you pay the $500 deductible.
What’s the Difference Between Equipment Breakdown Coverage and a Home Warranty?
If you’re weighing your options against other policies, there’s a big difference between equipment breakdown coverage vs. a home warranty. First off, the premium for a home warranty is much more expensive, sometimes ranging above $500 annually. Contrast that with an additional expense starting at $30 to your existing homeowners premium, and the difference is obvious. Secondly, you’ll still probably have to pay for a service visit and then a deductible before your coverage is active with a home warranty. And those extra costs can start to add up quickly. Equipment breakdown coverage helps keep more money in your pocket and offers great protection too.
To learn more about equipment breakdown insurance coverage or any of the other insurance products we offer, call our office at (480) 888-1428 and ask for Justin. I'll be happy to answer any questions you may have.