Why Equipment Breakdown Coverage Is Necessary (and Better than a Homeowners Warranty)January 2023
In a previous article, we addressed some of the fundamentals surrounding Equipment Breakdown coverage. We know the subject might be new for some homeowners and maybe a bit complicated for others. But given how much you invest in your expensive appliances and home systems, it really pays to get a handle on your coverage options. So welcome to equipment breakdown, part two.
So what’s the average cost per claim in a surge situation? You’re likely looking at somewhere around $3,200.1 But it could be more, especially if repair is not an option, such as with an older system that’s hard to source parts for.
There’s also the reality that modern machines aren’t always built to last. One day they’re working fine, and the next day you have no hot water. It’s worth noting that within four years 36 percent of side-by-side refrigerators stop working.1 For front-loader washing machines it’s 25 percent, and it’s 20 percent for dishwashers.1 At some point, we’ve all experienced the sting of one of those unwanted surprises.
Choosing the Best Equipment Protection
Now that you know the risks with your appliances and systems, choosing the right protection is key. Some people will tell you that a home warranty package is the answer. There are many varieties out there that, for a monthly fee, claim to safeguard
you from the cost of expensive equipment repairs or replacements.
The problem is these warranties are often expensive, hard to manage, and usually only cover limited pieces of equipment. They might also include hidden exclusions and confusing fine print. On the other hand, equipment breakdown coverage offers a simple,
comprehensive, and affordable solution that covers what most home warranties exclude.
For example, equipment breakdown coverage comes at an average cost of about $30 per year. With a home warranty, you can expect to pay in the neighborhood of $500 a year. They differ when it comes to claims too, with equipment breakdown covering a maximum of $100,000, while the warranty option offers just $10,000, and it doesn’t cover spoilage.
Equipment protection will also pay up to 150 percent for replacement of equipment to allow you to get a more efficient option that is better for the environment. This option is also different from most warranties by including off-premises coverage for any equipment, like a laptop, that travels with you.
Ask About Equipment Breakdown Coverage
Mutual of Enumclaw is here to help. Learn more about our equipment breakdown coverage. Or call your agent today for more details.
1 "Equipment Breakdown Coverage Lets You Rest Easy." Mutual Boiler Re, 2018.
The information we share on our site is intended to serve as a general overview. Please refer to your policy or contact your local independent agent for specific coverage details.
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