What are the differences and similarities between equipment breakdown insurance coverage and a home warranty?

Equipment breakdown coverage is an endorsement (add on) to your homeowners policy. There are no square footage limits and coverage is available nationwide.

The home warranty is a standalone service contract. You do not need an existing homeowners policy to be eligible for a home warranty. There are square footage limits on home warranties, and they may not be available in some states.

Both equipment breakdown coverage and home warranties cover common appliances and systems that people use in their homes. Here are some of the appliances that are covered by both:

Well pumps

Garbage disposals

Clothes washers




Clothes dryers

Water heaters

Equipment breakdown coverage losses must be sudden, direct and accidental. Wear and tear is excluded from equipment breakdown coverage. Home Warranties cover normal wear and tear, however, accidental damage to an appliance or a component is not covered.

To get broken equipment fixed, equipment breakdown policyholders can call their own trusted repair vendor to get their equipment fixed. Broken appliances will be replaced with “greener” energy star-rated products. When an item breaks under a home warranty, the homeowner calls a toll-free number or requests service online. The home warranty company will then assign a local repair professional from their network of approved contractors to come out to the home.

Please feel free to contact our office with any questions you have about equipment breakdown coverage or if you’d like to consider adding this endorsement to your current homeowners policy