February 8, 2022

Equipment Breakdown Coverage for Your High-Value Home Policy

Written by:
Bob Phillips
Reviewed by:

High-value homeowners are just as concerned about expensive systems and appliances breaking down in their homes as anyone else, maybe more so. Many of our policyholders have multiple dishwashers, freezer units, heat pumps, high-efficiency home heating and central air conditioning systems, and more.

You may have been offered a traditional home warranty plan when you built or purchased your home. If you’ve subscribed to one of these plans, review it with Kelly Klee and compare it to the “equipment breakdown” coverage we offer for your high-value homeowner's insurance policy.

Coverage That’s Tailored to Meet Your Needs

Every piece of equipment we buy for our home is ultimately destined to need replacement due to “wear and tear” over the years. Despite the advances in electronics and manufacturing technology we’ve witnessed in the past ten years, it sometimes seems as if the equipment we purchase was only built to last for 4-5 years. 

Did you know that thirty-eight percent of all equipment breakdown losses are mechanical in nature? Mechanical breakdown is only surpassed by electrical breakdown as the primary cause of costly repairs and replacement. Unfortunately, a typical homeowners policy will exclude these types of losses. 

As a Kelly Klee client, we’ll show you how you can be protected against mechanical and electrical breakdown. Here’s an example.

One of the property and casualty carriers we represent, Chubb, provides two levels of equipment breakdown coverage, Essential and Enhanced. Let’s look briefly at both for you to see the protection you need and what’s covered.


Essential coverage can be purchased up to a limit of $250,000 and covers the breakdown of your permanently installed home equipment, including heating and cooling systems. It also covers:

·        Appliances

·        Water heaters

·        Swimming pool equipment

·        Well pumps

·        Permanently installed generators and transfer switches

·        Permanently installed home automation and security systems


Enhanced coverage carries a $500,000 limit, provides the same protection as Essential coverage, and with a Masterpiece© Contents policy, you also have protection for:

·        Personal computers

·        Portable humidifiers

·        Small countertop appliances

·        and more


Some Typical Losses

A domestic water 230-volt deep well pump short-circuited to ground. Upon being pulled from the well to determine its condition, it was concluded that the cost to repair the motor was greater than the cost of replacing it. Cost of Replacement: $1,850 Loss of Use: $186

A power surge caused by the electric utility resulted in arcing damage to the electronic components of a flat-panel television and the electric motor of an air conditioning system. Replacement and repairs required service by separate technicians. Cost of Repairs: $3,750

A personal computer (PC) used to control multiple systems (HVAC, lighting, and irrigation) within the home sustained electrical damage from a power surge. Replacement of the computer and unique programming was required. Property Damage: $2,975

An air conditioning system suffered an ice buildup in the evaporator due to a cracked compression fitting. The ice plugged the condensate drain causing water to flow into the control cabinet, short-circuiting the solid-state controls for the air conditioning system and furnace. Cost to Repair: $2,800

Your homeowner's policy is going to protect you against significant events like a falling tree or a fire, but not against common problems with equipment. Talk with a Kelly Klee high-value homeowners insurance specialist about your existing coverage and, if needed, how it can be adjusted to best fit your lifestyle and your needs.

Call us today at 844-885-1600 or get started here. We’re here to help.

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