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Repairing or replacing a damaged device can often cost hundreds or thousands of dollars. Home insurance typically covers personal property in your home, including household appliances, but only for damage caused by an insured event.
If your device fails due to normal wear and tear or maintenance issues, you will have to pay out of your own pocket to have it repaired or replaced.
What you need to know about home insurance and household appliances:
Does home insurance cover damage to appliances?
Home insurance can help cover home appliances that have been damaged as a result of an insured peril. Perils covered under standard homeowner insurance typically include:
Household appliances can fall under several coverages within a standard homeowner’s insurance policy, depending on the type of appliance and how it is installed:
- Coverage of private property: Appliances that plug into an outlet in your home may be covered by your policy’s personal property insurance. These may include dishwashers, microwaves, ovens, and refrigerators.
- Apartment coverage: Devices that are built into your home are often covered by your policy’s home coverage. This includes stoves and water heaters.
- Coverage of other structures: If you have equipment in a detached building on your property, such as a For example, a shed or garage may be covered by coverage for other buildings on your policy.
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Equipment Damage Coverage Limits
Home appliance coverage is subject to the maximums your insurance carrier will pay for a covered claim. The amount you get to repair or replace a damaged device depends on:
- Whether the damage is due to a covered risk.
- What type of coverage it falls under.
- Your policy limits and deductibles.
Keep in mind: Your home coverage should be enough to cover the full replacement cost of your home. Personal property coverage is typically 50% to 70% of your policy’s residential coverage limit. The protection of other buildings is usually around 10% of the coverage of your residential building.
Actual present value vs. replacement cost
Home insurance payouts generally fall into two categories:
- Current monetary value: Your policy may pay for the repair or replacement of the device less depreciation. If you have older devices, they are likely not covered for the amount paid at the time of purchase.
- replacement cost: If your policy pays replacement value, you will receive funds to repair or replace the unit at today’s cost.
In some cases, your policy deductible (the deductible you pay before your insurance kicks in) can be more than the cost of replacing a device. If your deductible is $1,000 but replacing your fire-damaged stove costs $700, there is no point in making an insurance claim.
Cash: Homeowners Insurance Deductible: What You Need to Know
When does household contents insurance not cover damage to appliances?
Home contents insurance does not cover all damage to your household appliances. Here are some common exclusions:
- Normal wear and tear
- Bad installation
- channel fuses
- Water leaks not caused by a covered hazard (such as a storm)
Learn more: What does homeowners insurance cover?
Additional coverages for equipment damage
A few other covers can protect you financially if one of your devices is damaged:
- Loss of use coverage: If your home becomes uninhabitable after covered damage to one of your appliances — perhaps your stove caught fire, or your dishwasher flooded and ruined your kitchen — loss of use insurance can cover the cost of room and board, up to the insurance limits, while repairs are made. Loss of use insurance is included with any standard homeowner insurance policy. It’s usually 20% of your home coverage.
- House guarantee: Many units come with their own warranty, but you can also purchase a separate home warranty for additional coverage. This covers your device if it breaks due to normal wear and tear. You may be able to purchase one through your home insurance. Check the terms and conditions of a home guarantee to understand what is and is not covered.
How to report a device damage
If one of your devices is damaged by fire or another covered peril, you can file a claim for reimbursement with your insurance provider. The claim process varies by insurer, but you generally need to take the following steps to make a claim:
- Contact your insurance provider. Contact your insurer immediately and have your policy number ready to speed up the process. Provide details about the incident and the damage caused. This also gives you the opportunity to inquire about your coverage, policy limits and deductible.
- Submit application forms. Your health insurance company will provide you with the forms you need to report a claim. You must provide information such as the date and time of the event, details of what happened, and photos of your property.
- Get an estimate. Your insurer may arrange an inspection for an insurance adjuster to assess the damage. The insurance carrier will then use the information provided to provide a cost estimate for the repair and tell you how much damage is covered.
- To recieve money. After the inspection, your insurance provider (or your chosen contractor) will send you a payment equal to the estimated amount. You can commission any contractual partner to repair or replace the damaged devices.
When looking for home insurance, it’s a good idea to compare offers from multiple companies. Credible Insurance makes it easy to research insurers, compare quotes, and get home insurance.
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Disclaimer: All insurance related services are provided by Young Alfred.