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What Is Equipment Breakdown Coverage in Your House Insurance

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Published on July 22, 2021. EST READ TIME: 3 minutes

Heavy equipment and machinery is now a staple in our lives, be it at work or at home. For example, few would argue that a fridge is not an absolute necessity in today’s day and age. However, these machines are also at risk of being damaged or breaking, causing serious problems for the household. This problem also exists in business, particularly for firms operating heavy machinery.  In order to solve this problem, equipment breakdown coverage was created. Now, this coverage is not exclusively limited to business insurance plans, but can also be attached to your house insurance.

What Is Equipment Breakdown Coverage?

Equipment breakdown coverage is an insurance policy which can be attached to your business or house insurance. As part of the policy, the breakdown of certain equipment or machinery such as industrial manufacturing machines in businesses and air conditioning / heating systems are covered under your house insurance. As a result of this, the breakdown of any heavy equipment in your house can be covered under your house insurance plan, with the equipment breakdown coverage attached.

If for instance, you have an AC and fridge in your house, it is likely that there is a possibility of it being damaged in a way that is out of your control. As a result of this, you might incur excess and heavy repairing charges. This is especially true if your appliances are of older makes and models, as finding people to repair them and the parts to repair them with becomes increasingly challenging as the model ages. In this scenario, you might benefit from equipment breakdown coverage being added to your house insurance, since it ensures you avoid having to pay for these unexpected instances.

What Does Equipment Breakdown Insurance Cover?

The equipment breakdown coverage policy was initially designed to suit businesses and factories or be attached to a business insurance plan instead of house insurance, as damage to manufacturing equipment could halt production and cause substantial losses. Adapted to be attached to the home insurance policies, an equipment breakdown insurance cover in your house insurance provides cover against damage to heavy machinery such as your fridges, air conditioners, heaters and invertors among others. Keep it mind however, that the specifics of the coverage will vary based on the policy provider, so it is also beneficial to read the terms and conditions thoroughly before making a decision on which equipment breakdown insurance cover you wish to add to your house insurance plan.

Is Equipment Breakdown Coverage Right for Me?

Equipment breakdown coverage can be perceived as a move towards making increased savings/ reducing your expenditure on general house maintenance in the long run. This decision in striking a balance between the insurance premium and the amount you would have paid in flat repair fees is made easier by the realisation of planned obsolescence; all kinds of machines, from phones to air conditioners are built to last a finite time period, after which they stop providing you with optimal service. Meaning, you can be almost certain that one or more pieces of equipment in your house will incur damage and/or require maintenance. Generally, equipment breakdown coverage is considered a good idea for all house owners who are investing in machinery such as fridges and air conditioners for their house.

 If you are not looking to keep a house for too long, or are purchasing it as an investment however, you might consider not opting to add equipment breakdown coverage to your house insurance plan, as you might not put the instruments through daily wear and tear.

Equipment Breakdown Coverage in HDFC ERGO Home Insurance 

Equipment breakdown coverage under the HDFC ERGO home insurance banner is provided as the HDFC ERGO home shield policy. Under this policy, the possible and most frequent damages have been taken into account and have been insured as part of one package you can attach to your house insurance policy.

What’s included? 

1. Coverage against damage caused by fire, lightning, explosions, earthquakes and landslides.

    

2. Coverage against the breakdown of electronic equipment.

    

3. Coverage against Data loss as well as restoration

What’s not included? 

1. Floods.

    

2. Deductibles.

    

3. Loss against earnings

Conclusion

Equipment breakdown coverage is an addition to your house insurance policy that, despite having a premium payment in the short run, can potentially have financial benefits in the long run, as you are not required to pay for the repair of any appliances that might cause you inconveniences in the future.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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