Equipment Breakdown Coverage for Homeowners: What It Covers & Why It Matters

At Edison Insurance Company, we know modern homes rely on technology more than ever. AC units run year-round, water heaters work hard daily, and smart appliances and other devices keep life moving smoothly. When essential equipment fails unexpectedly, it’s stressful, disruptive, and expensive. This is where equipment breakdown coverage for homeowners comes in.

This optional protection can be added to your Edison HO-3 (home) or HO-6 (condo) policy and is designed to help cover the cost of repairing or replacing household systems when they suffer a sudden, accidental breakdown – something standard homeowners insurance doesn’t typically cover.

Below, we break down how this coverage works, what’s included, and why more homeowners are choosing to add it.

What Equipment Breakdown Coverage Does

Equipment breakdown coverage helps protect your property when essential equipment unexpectedly fails due to mechanical breakdown, sudden electrical failure, or pressure system breakdown – not everyday wear and tear.

Covered home equipment includes:

• 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 a power surge, motor burnout, or mechanical failure, equipment breakdown coverage for homeowners 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 burns out during peak summer heat, instead of paying for a major repair entirely out-of-pocket, this coverage can help reduce your financial burden so your home cools down quicker.

Cost, Deductible, and Limits

Edison offers equipment breakdown coverage for homeowners at a simple yearly cost ($50 per year) and provides:

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

It’s a small annual cost for peace of mind when a big-ticket appliance unexpectedly fails.

Adding Service Line Coverage

For HO-3 homeowners only, policyholders may expand protection with service line coverage – which protects underground utility lines you’re responsible for, including:

• Water and sewer lines
• Drainage and steam piping
• Fiber optic and phone cables
• Electronic and other utility lines

This add-on is bundled with equipment breakdown for a total of $80 per year for both. Service line coverage cannot be purchased alone and is available only when you add equipment breakdown coverage to an HO-3 policy.

Not a Maintenance Plan — Here’s the Difference

It’s important to know equipment breakdown coverage for homeowners isn’t a warranty or maintenance contract. It does not cover:

• Routine wear, rust, deterioration, or corrosion
• Equipment gradually aging out of use
• Wells and septic systems
• Some HVAC and irrigation equipment (varies by circumstances)

Why More Homeowners Are Adding This Coverage

A power surge fries your refrigerator motherboard. Your hot water heater suddenly shuts down. Your AC compressor fails during a heatwave. These situations often come without warning and can cost hundreds or thousands to repair.

With equipment breakdown coverage for homeowners, you enjoy:

• Affordable annual cost
• No equipment age restrictions
• Ability to use your preferred contractor or repair provider
• Coverage for modern tech and appliances homes rely on
• Quick recovery when something breaks unexpectedly

You’re not waiting on a warranty service window or juggling third-party repair plans. You call your chosen contractor, fix the issue, and let coverage help reduce your out-of-pocket expense.

How to Add Coverage

Adding equipment breakdown coverage for homeowners is simple and can be done at any time during your policy term. Just contact your Edison agent and ask to include:

• Equipment breakdown coverage to your Edison HO-3 (home) or HO-6 (condo) policy

• Optional service line coverage (Available only to HO-3 policyholders, when bundled with equipment breakdown coverage.)

Once added, coverage applies going forward if covered equipment experiences a sudden mechanical or electrical failure.

Frequently Asked Questions About Equipment Breakdown Coverage

1. What does equipment breakdown coverage cover?

 Equipment breakdown coverage helps pay to repair or replace home systems and appliances experiencing a sudden and accidental mechanical, electrical, or pressure-related breakdown. Covered items typically include central AC, water heaters, household appliances, computers, generators, and more.

2. Is equipment breakdown coverage the same as a home warranty or maintenance plan?

 No. A warranty or maintenance plan covers routine wear, upkeep, and normal aging of equipment. Equipment breakdown coverage steps in when a sudden breakdown occurs.

3. How much does equipment breakdown coverage cost?

 Edison offers this additional protection for $50 per year, with a $100,000 per occurrence limit and a $500 deductible (also per occurrence).

4. Can I add service line coverage too?

 Yes. Homeowners with an HO-3 home insurance policy may bundle equipment breakdown coverage with service line coverage for $80 total per year. Service line coverage cannot be purchased alone.

5. How do I add equipment breakdown coverage to my policy?

 Just contact your insurance agent. Coverage can be added any time during your policy term and becomes active going forward for eligible breakdowns.

6. Is equipment breakdown coverage worth it for homeowners?

 Many homeowners find it valuable because large home systems – such as AC units, water heaters, and electronics – often fail without warning and can be costly to repair. For a low annual price, this coverage helps reduce financial stress during an unexpected outage.

A Small Add-On With Big Everyday Value

Unexpected home equipment failure disrupts comfort, safety, and routine – often at the worst possible time. For the price of a dinner out, equipment breakdown coverage for homeowners helps create financial breathing room when something essential breaks.

Ready to Protect Your Home Equipment?

Call your agent for guidance or to request equipment breakdown coverage be added to your Edison home or condo policy today. If you are not yet insured with Edison, get a quote to explore our homeowner-friendly options designed for real-life living.