You may already know that equipment distribution insurance is a common and necessary part of many commercial insurance packages. What you may not know is that this coverage is also available to homeowners. Traditional homeowners insurance does not cover equipment-related losses, so if you have expensive equipment in your home (such as high-end appliances, computer and security systems or HVAC equipment), this coverage can be a smart addition.
How does equipment distribution insurance work?
If a covered hazard – such as a fire or hailstorm – leads to damage to the equipment, the loss is likely to be covered by a standard home insurance policy. However, if the equipment simply stops working due to mechanical or electrical failure, it will usually not be covered.
Imagine that an electrical fault wipes off your home theater system. This coverage may cover the cost of repairing or replacing your system, depending on the insurance terms.
What does equipment distribution insurance cover?
Equipment distribution insurance can cover many different types of household equipment and appliances. Here are some common things that can be covered:
- HVAC systems
- Refrigerators and freezers
- Ovens and stoves
- Washing machines and dryers
- Security systems
- Well pumps
- Exercise equipment
- Pool equipment
This list is not complete, and the available coverage may vary depending on the carrier. If you want to make sure certain equipment is covered, talk to your insurance agent.
It is also important to understand that some issues may not be covered. Losses caused by lack of maintenance or the end of the normal life of the equipment can be excluded from coverage.
Is Equipment Insurance Right For You?
Dividing equipment can be both expensive and inconvenient. For those who have advanced devices and systems, a recommendation on equipment distribution can provide extra peace of mind.
Talk to your BNC insurance agent to see if this coverage is right for you.