Many homeowners wonder, "Does homeowners insurance cover appliances?" It's a valid question, and the answer isn't always a straightforward yes or no.
Understanding the nuances of your specific homeowners insurance policy is critical when it comes to protecting your home appliances—and your financial well-being.
This article breaks down when home insurance may provide coverage for household appliances, in what situations coverage is typically excluded, and how you can ensure your valuable belongings are adequately covered. Whether you're a long-time homeowner, or in the process of purchasing your first home, understanding the scope of your insurance coverage for appliances can be the difference between stress and peace of mind.
At a glance:
- Standard homeowners insurance typically covers appliance damage resulting from sudden and accidental covered perils like fire or certain water damage.
- Equipment breakdown coverage and home warranties offer additional protection against appliance breakdowns not covered by standard policies.
- Understanding policy limits, deductibles, and preventative maintenance is important for managing appliance-related risks.
Why appliance insurance coverage matters
From the refrigerator that keeps our food fresh to the washers and dryers that cleans our clothing, our homes are filled with essential home appliances that make daily life easier and more comfortable. Household appliances are both convenient and integral to our daily routines, and the cost to repair or replace a major appliance can be significant, making protection against unexpected loss or damage a serious consideration for every homeowner.
There's often confusion surrounding what a standard homeowners insurance policy actually covers when it comes to household appliances However, many homeowners assume that because they own the appliances, and because those appliances are part of the home, that their homeowners insurance will automatically cover any issue that arises. Unfortunately, this isn't the case.
When does homeowners insurance cover appliances?
Typically, homeowners insurance steps in to cover appliances when they are damaged by specific, sudden, and accidental events, often referred to as covered perils. It's important to understand that the trigger for coverage isn't simply that an appliance breaks down; it's how it was damaged.
Covered perils and real-life examples
A homeowners policy typically covers damage to your personal property, including appliances, when it results from events like:
- Fire—If a kitchen fire damages your stove, oven, or microwave, your homeowners insurance would likely cover the repair replacement costs, up to your policy limits and after your deductible.
- Lightning strikes—A direct lightning strike that causes an electrical surge frying your refrigerator or other appliances would generally be a covered peril.
- Theft—If your microwave is stolen during a break-in, your personal property coverage should help cover the cost of a replacement.
- Certain water damage—If a burst pipe suddenly floods your laundry room and damages your washing machine and dryer, this type of sudden and accidental water damage is often covered.
Understanding policy limits and deductibles
It's important to note that even when the damage to appliances is the result of a covered peril, your homeowners insurance policy will still have coverage limits. These coverage limits specify the maximum amount your home insurance provider will pay for a covered loss. For personal property, there's typically an overall limit and potentially sub-limits for certain categories of items.
Additionally, your deductible, or the amount you pay out-of-pocket before your home insurance coverage kicks in, will apply to an appliance-related claim. Therefore, even if the damage is covered, the final payout you receive might be less than the full replacement cost, depending on your deductible.
What’s not covered by standard home insurance policies?
While homeowners insurance offers valuable protection, understanding what is not covered by home insurance is important.
Normal wear-and-tear
One of the most common exclusions is normal wear-and-tear. As appliances age, they naturally become less efficient and eventually stop working. For example, if your washing machine stops working because it's old and worn out, your home insurance won't cover the cost of repair or replacement.
Homeowners insurance is designed to cover sudden and accidental losses, and as such, the responsibility for regular upkeep and maintenance lies with the homeowner.
Mechanical and electrical failures
Similarly, standard homeowners policies generally don't cover breakdowns due to internal mechanical or electrical failures. If your refrigerator suddenly stops cooling or your oven's heating element burns out, this is usually considered a maintenance issue or a defect, not a loss caused by a covered peril.
How insurance classifies appliance coverage
To understand how your insurance provider handles appliances, it's helpful to know how they are classified within your homeowners insurance policy.
Personal property coverage
Removable or plug-in appliances, such as toasters, microwaves, blenders, coffee makers, washing machines, dryers, and even portable dishwashers, are generally considered personal property. If these items are damaged by a covered peril like fire or a burst pipe, their repair or replacement would fall under your personal property coverage.
Dwelling coverage
Built-in systems and appliances that are considered a permanent part of your home's structure, such as your HVAC system (heating, ventilation, and air conditioning), water heater, and built-in ovens or dishwashers, are typically considered part of the dwelling coverage. If these are damaged by a covered peril, the dwelling portion of your homeowners insurance policy would likely provide coverage.
When to consider extra coverage for appliances
Given the limitations of standard homeowners insurance regarding appliance breakdowns, homeowners may want to consider adding endorsements to their homeowners insurance policy or securing a supplemental policy.
Equipment breakdown coverage
Equipment breakdown coverage is typically an optional add-on to your homeowners insurance policy that specifically protects against mechanical or electrical failure of your home appliances and systems. This includes things like motor burnout and other internal issues that wouldn't be covered by a standard policy.
Home warranties vs. homeowners insurance
While home insurance protects against sudden and accidental damage from covered perils, a home warranty is a service contract that covers the repair or replacement of certain appliances and home systems due to normal wear and tear or mechanical breakdowns. A home warranty can fill the gaps left by your homeowners insurance by covering issues that arise from everyday use and aging.
Preventive tips to avoid appliance-related loss
While insurance can help in the event of damage due to a covered loss, preventing loss in the first place is always the best approach. Consider these tips:
- Regularly maintain your appliances according to the manufacturer's recommendations.
- Periodically inspect water lines connected to your appliances for leaks or wear.
- Protect your electrical appliances from power surges with high-quality surge protectors.
- Don't overload washing machines or dryers, as this can put unnecessary strain on the motors and components.
Straightforward insurance coverage
At Openly, we understand that navigating homeowners insurance and understanding what's covered can feel complex. That's why we're committed to providing premium protection without the guesswork.
We streamline the home insurance coverage process, making it easier for you to understand what's protected, including your valuable personal property like home appliances. With Openly, you can have confidence knowing your insurance policy offers robust coverage, including equipment breakdown coverage in some states.
In addition, Openly partners with trusted, local independent agents who can provide tailored advice and support. These agents understand your unique needs and can help you customize your homeowners insurance to ensure you have the right level of protection for your belongings, including your appliances.
We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions, exclusions and coverage details. Openly may provide links that lead to an external website that may promote goods and services that Openly does not endorse. We are not responsible for the content, claims, or representations made on the linked website. Please review their terms and policies before engaging with any offerings.
