Protecting Your Home From Equipment and Service Line Failures

Does homeowners insurance cover appliance breakdowns?

Standard homeowners insurance typically doesn’t cover appliances or home systems when they fail because of a mechanical or electrical problem. Equipment breakdown coverage can help pay to repair or replace eligible equipment after a covered mechanical, electrical or electronic breakdown.

Your home runs on many types of equipment and systems. AC units, water heaters, electronics, security devices and more all help your household function day to day. Underground water, sewer, electrical and communication lines are just as important – and you may be responsible for repairing the portion of those lines on your property.

Edison Insurance Company offers two optional coverages to help when home equipment suddenly breaks down or an underground service line is damaged. Equipment breakdown coverage can be added to eligible home or condo policies for $50 per year. Eligible homeowners can also add service line coverage with equipment breakdown coverage for a total of $80 per year. Understanding what each covers can help you decide which protection fits your home.

What Does Equipment Breakdown Coverage Cover?

Equipment breakdown coverage helps protect you when essential home equipment unexpectedly fails because of a covered mechanical, electrical or electronic breakdown. It is designed for sudden, accidental problems – not everyday wear and tear.

Equipment breakdown insurance for homeowners may help pay to repair or replace eligible equipment such as:

• Central AC systems
• Household appliances
• Computer equipment
• Personal electronics
• Emergency generators
• Water heaters
• Security systems
• Well pumps

If one of these systems suddenly stops working because of an eligible motor burnout, electrical problem or mechanical failure, equipment breakdown coverage can help pay for repair or replacement, up to the coverage limits.

It’s protection designed for the big surprises, not routine upkeep.

For example, if your central AC motor suddenly burns out because of a covered breakdown, equipment breakdown coverage may help pay for an eligible repair or replacement. It wouldn’t pay simply because an aging AC unit needs routine maintenance or has deteriorated over time.

What Is Service Line Coverage?

Service line coverage protects eligible underground utility lines you’re responsible for on your property. Depending on the covered loss, it can help pay not only to repair or replace a damaged line, but also for excavation and restoration needed to access and repair it.

Eligible service lines may include:

• Water and sewer lines
• Drainage and steam piping
• Electrical lines
• Fiber-optic and phone lines
• Other covered underground utility lines

This protection matters because the utility company is not necessarily responsible for the entire line serving your home. If a covered underground line on your property is your responsibility, the cost of the repair can be yours alone to handle.

And fixing the line itself may be only part of the job. Imagine tree roots damage an underground water line running through your front yard. The repair may require digging up the affected area, replacing the damaged portion of the pipe, backfilling the excavation and restoring the affected surface or landscaping. Service line coverage can help with eligible costs associated with this work.

For Edison homeowners with an eligible HO-3 policy, service line coverage is available only when bundled with equipment breakdown coverage. The combined cost is $80 per year. Service line coverage is not available for condo policies.

Equipment Breakdown vs. Service Line Coverage: What’s the Difference?

The easiest way to understand the difference is to look at what is damaged and why.

Equipment breakdown coverage:

• Protects eligible appliances, electronics and home equipment
• Covers sudden and accidental mechanical, electrical or electronic breakdowns
• Does not function as a maintenance plan for ordinary wear and tear

Service line coverage:

• Protects eligible underground utility lines you’re responsible for
• May cover damage from causes such as wear and tear, deterioration, corrosion and tree-root intrusion
• May help cover excavation, repair or replacement of the line and restoration of affected property after a covered loss

So, an AC motor suddenly burning out because of an eligible mechanical failure is an equipment breakdown issue. An underground water line deteriorating and leaking on the portion of your property you’re responsible for may be a service line issue.

That distinction is important: equipment breakdown coverage generally isn’t designed for wear and tear, while service line coverage can apply to eligible wear-and-tear damage.

How Much Does Equipment Breakdown and Service Line Coverage Cost?

Edison offers equipment breakdown coverage for eligible home and condo policies for $50 per year, with:

• $100,000 coverage limit per occurrence
• $500 deductible per occurrence

For eligible HO-3 homeowners, service line coverage can be added with equipment breakdown coverage for $80 total per year. Service line coverage has a $500 deductible per occurrence, with coverage limits based on the age of the damaged line:

• $10,000 limit for covered service lines less than 50 years old
• $2,500 limit for covered service lines 50 years old or older

In other words:

• $50 per year: Equipment breakdown coverage
• $80 per year: Equipment breakdown + service line coverage

Service line coverage cannot be purchased separately and is not available for Edison condo policies.

Is Equipment Breakdown Coverage the Same as a Maintenance Plan?

Equipment breakdown coverage isn’t the same as a maintenance plan or home warranty. Equipment breakdown insurance for homeowners is designed to respond to eligible sudden, accidental breakdowns rather than paying for routine maintenance or replacing equipment simply because it has reached the end of its useful life.

For equipment breakdown coverage, exclusions include problems caused by:

• Routine wear and tear
• Rust, corrosion, decay, deterioration, or mold
• Hidden defects
• Scratching or marring

Regular maintenance remains your responsibility even when you carry equipment breakdown coverage. Review your policy for complete coverage details, conditions, and exclusions.

Service line coverage works differently. Eligible service line damage may result from wear and tear, deterioration, corrosion, tree roots and other covered causes.

When Can Equipment Breakdown Insurance Help?

A power surge damages your refrigerator’s electronics. Your water heater suddenly shuts down because of an eligible mechanical breakdown. Your AC compressor fails during a heat wave.

These situations can come without warning and may cost hundreds or thousands of dollars to repair. Equipment breakdown insurance for homeowners can provide another layer of financial protection for covered failures involving systems and equipment you rely on every day.

Edison’s equipment breakdown coverage also offers:

• No equipment age restrictions
• Ability to use your preferred contractor or repair provider
• Coverage for eligible modern electronics, appliances and home systems

Equipment breakdown coverage is available with eligible Edison HO-3 home and HO-6 condo policies. Service line coverage is available only with equipment breakdown coverage on eligible HO-3 policies.

Frequently Asked Questions About Equipment Breakdown vs. Service Line Coverage

What’s the difference between equipment breakdown and service line coverage?

Equipment breakdown coverage helps pay to repair or replace eligible home equipment after a mechanical, electrical or electronic breakdown. Service line coverage helps pay for covered damage to underground utility lines you’re responsible for, including eligible damage caused by wear and tear, deterioration, corrosion, or tree roots.

What appliances and equipment can equipment breakdown coverage protect?

Equipment breakdown coverage can protect eligible home equipment including central AC systems, household appliances, computers and personal electronics, emergency generators, water heaters, security systems and well pumps.

Does equipment breakdown coverage cover wear and tear?

Equipment breakdown coverage generally does not cover ordinary wear and tear, deterioration or equipment simply reaching the end of its useful life. It is designed for eligible sudden, accidental mechanical, electrical or electronic breakdowns.

Does service line coverage cover wear and tear?

Service line coverage can cover eligible underground service-line damage caused by wear and tear, deterioration or corrosion, along with other covered causes such as tree-root intrusion. Coverage varies by policy, so review your policy for applicable terms and exclusions.

What does service line coverage pay for?

Service line coverage can help pay eligible costs to repair or replace a covered underground utility line you’re responsible for. Depending on the loss and policy, coverage may also include excavation and restoration of affected landscaping or other property after repairs.

How much does equipment breakdown coverage cost?

Edison Insurance Company offers equipment breakdown coverage for eligible home and condo policies for $50 per year, with a $100,000 per-occurrence limit and $500 per-occurrence deductible.

Can I add service line coverage to a condo policy?

Service line coverage is not available for Edison condo policies. It is available only for eligible HO-3 homeowners policies and must be bundled with equipment breakdown coverage. Equipment breakdown coverage is available for eligible HO-3 home and HO-6 condo policies.

Is equipment breakdown insurance worth it for homeowners?

Equipment breakdown insurance for homeowners can be valuable if you want financial protection from eligible sudden failures of major appliances, electronics and home systems. Edison offers the coverage for $50 per year, while eligible homeowners can add service line protection for a total cost of $80 per year.

How Can You Protect Your Home From Equipment and Service Line Failures?

Equipment breakdown and service line coverage protect different parts of your home from different types of problems. Equipment breakdown coverage can help with eligible mechanical, electrical, or electronic failures involving appliances, electronics, and home systems, while service line coverage can protect eligible underground lines you’re responsible for, including certain wear-and-tear-related damage.

For Edison Insurance Company policyholders, equipment breakdown coverage is available for $50 per year on eligible home and condo policies. Eligible HO-3 homeowners can add service line coverage on top of equipment breakdown coverage for a combined total of $80 per year. Contact your agent to review your options and determine which coverage fits your home.

Not currently insured by Edison Insurance Company? Get a quote to explore available homeowners coverage and additional protection for your home.

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