Does Home Insurance Cover Maintenance Issues?

Your home’s functionality relies on various machinery and systems. But while homeowners insurance may help manage losses and expenses following external events, such as fires and storms, alternative arrangements are typically necessary for maintenance issues and breakdowns.

Understanding Possible Shortcomings

Although certain insurance policies can help with issues involving your home’s essential equipment, appliances and systems, you should understand that you may need to augment a standard policy for such financial protection. Fortunately, endorsements, also known as riders, and home warranties can help fill this coverage gap.

Understanding Equipment Breakdown Coverage

Equipment breakdown coverage is often available as a homeowners insurance endorsement, and can assist with the cost of repairing and replacing key parts of your home due to sudden mechanical or electrical failures. Specifically, it may help with repair or replacement costs for the following:

• HVAC systems, including furnaces, boilers and central air conditioners
• Major appliances, such as refrigerators, ovens, dishwashers and laundry machines
• Electrical systems, water heaters and sump pumps
• Home security systems

Review your policy and endorsement carefully to make sure you fully understand any limitations or exclusions in your coverage and avoid mistakenly expecting certain issues to be covered.

What Is a Home Warranty?

In addition to equipment breakdown coverage, you may also invest in a home warranty. While not technically a type of insurance, these arrangements can help pay to repair or replace appliances and systems if made necessary by normal wear and tear, which is typically excluded from equipment breakdown coverage. These contracts are often available through specialized warranty companies, real estate brokerages and, in some cases, insurance providers.

Steps to Review and Update Your Policy

Keeping your insurance current and adding appropriate elements, such as equipment breakdown coverage, can be crucial. Start by scheduling an annual policy review, especially after completing major projects such as a roof replacement or bathroom renovation. Ask your agent whether your dwelling coverage still reflects your home’s current rebuild cost. Confirm that any new structures you have added are listed. Finally, ask about endorsements and other options for managing costs arising from maintenance issues.

Talk to an Agent Who Knows Your Needs

Homeownership comes with enough surprises without adding coverage gaps to the list. Contact Universal Insurance Agency today to review your homeowners insurance policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.