Does homeowners insurance cover appliances?
Your homeowners insurance protects you from a catastrophic loss in the event of a named peril, such as fire, tornadoes, burglary, and other natural disasters. But does it also cover your home's contents, such as your appliances?
The short answer is that it depends. If, for example, your kitchen appliances are destroyed in a fire, the personal property portion of your policy will cover the loss. However, if your refrigerator breaks down after ten years of dependable service, you'll almost certainly have to pay for repairs yourself.
When does homeowners insurance cover appliances?
An HO-3 policy, which covers personal property in the event of specific, named disasters, is the most common type of homeowner policy. These are some examples:
Damage caused by fire, lightning, or smoke
A kitchen fire could easily damage your refrigerator or stove. However, smoke can also harm home systems and appliances such as air conditioners and furnaces.
Storm-related damage
Windstorms, hail, and the weight of ice, snow, or sleet are all examples of this. You should be covered if a portion of your roof caves in after a heavy snowfall and crushes your washer and dryer. However, flooding is not covered by HO-3 policies; you would need to purchase a separate policy for flood damage.
Explosions
Although no one wants to think about it, explosions can be caused by either internal or external forces and can cause significant damage to your home and its contents. A gas leak, for example, could cause structural damage to your home as well as damage to your furnace and other appliances.
Riots or civil commotion; vandalism, malicious mischief or theft
HO-3 policies cover property damage caused by malicious individuals. Your policy should cover it if a burglar breaks in and damages your appliances while looking for valuables. This includes the theft of electronics like computers and stereo systems.
Damage caused by a sudden discharge of steam or water
Any appliances in the area can be damaged by the accidental discharge of water or steam, or the sudden and accidental tearing apart, cracking, or burning of a steam or hot water heating system. It should be noted, however, that only sudden damage is covered. A slow steam or water leak in your basement that causes mold to grow may not be covered.
Freezing damage
You would be covered if freezing temperatures damage your plumbing, air conditioning, sprinkler system, or appliances. This should include any damage caused by bursting pipes as a result of a freeze.
Damage caused by artificially generated electrical current that occurs suddenly and unintentionally
This danger refers to electrical surges, which can severely damage your electronics. If you have a large number of expensive electronic items, you should notify your insurance agent to ensure you're properly covered. Some companies provide a separate rider, or endorsement, that covers electronics.
When does homeowners insurance not cover appliances?
There are some situations where your insurance will not cover appliances, and it's a good idea to be aware of them before you're hit with unexpected repair bills.
- Standard home insurance policies do not cover age-related breakdowns. If you've had an appliance for a few years and it breaks down for a reason other than a listed hazard, you're on your own for repairs.
- Your insurance policy does not cover a lack of maintenance. If you haven't had your furnace cleaned every year, despite the manual's recommendation, your policy will not come to your aid.
- HO-3 policies do not cover flooding. If you live in or near a flood zone, you can purchase a separate policy from the government's National Flood Insurance Program, but if you don't have one and your basement floods, shorting out your dryer, you won't be covered. It's also worth noting that, while you'd be covered for hurricane-related damage, you wouldn't be covered for hurricane-induced flooding.
- A standard home insurance policy does not cover earthquake damage. However, you would be covered if your appliances were damaged in a fire caused by an earthquake.
Types of homeowners insurance that covers appliances
What insurance policies cover appliances? As previously stated, a HO-3 policy, which is standard in most home insurance policies, covers your appliances in the event of specified perils. There are a few other options for paying for appliances that have been damaged.
Renter’s insurance
What if you rent an apartment or a house but have your own appliances, such as a washer and dryer? You should look into a HO-4 policy, also known as renter's insurance. It protects your personal property against the aforementioned named perils. Appliances are considered personal property. They are, indeed. This insurance does not cover the building itself; that is the responsibility of your landlord. An HO-4 policy, on the other hand, would cover everything you own in the apartment, from your clothing to your coffee maker.
Condo insurance
Condo insurance, also known as HO-6 policies, is sometimes referred to as "walls-in" coverage because it covers the walls, floors, and ceilings as well as the owner's personal belongings, including appliances. It includes the same named perils we've already discussed, such as fire and damage from snow and wind storms.
Mobile home insurance
You most likely have HO-7 coverage if you own a mobile home. This type of policy protects both the building's physical structure and its contents. The perils it covers may differ from the named perils of the other policies; consult with a knowledgeable agent to find out exactly what is covered.
Flood insurance
Because standard HO-3 policies do not cover flood damage, it is critical to know if you live in a flood zone. The Federal Emergency Management Agency, FEMA, has a flood map service center where you can enter your address and see if your property is at risk. If so, talk to your insurance company about getting flood insurance. Personal contents flood insurance will cover the loss of clothing, furniture, electronics, and some appliances, including freezers, as well as their contents. According to FEMA, the average flood insurance policy costs around $700 per year.
Home warranty coverage
Home warranties, which are not identical to the "HO" series policies, are sometimes provided to new homeowners as part of the closing process. This coverage is more akin to a service contract in that it protects your appliances and home systems (plumbing, electrical, and HVAC) from damage caused by normal wear and tear and age. So you could have both a HO-3 home insurance policy and a home warranty — the coverages are distinct. A home warranty typically costs between $25 and $50 per month, and you can often pick and choose what you want covered.
Who needs insurance that covers appliances?
If you've recently purchased a newly built home with brand-new appliances, a standard homeowner's HO-3 policy should suffice. Your new appliances are most likely covered by the manufacturer's warranty. For an additional fee, you will most likely be offered extended warranties that cover damage for a specified number of years.
If you have an older home with older appliances, having home insurance that covers appliances becomes even more important. If this is the case, you may want to consider purchasing a home warranty in addition to your regular coverage, as this type of policy will cover appliances that stop working due to age.
How to choose the right policy to protect your appliances
When purchasing homeowners insurance, your agent should walk you through the available options, including an explanation of coverage endorsements, or add-ons, and available discounts. When purchasing a policy, there are numerous factors to consider, including cost, customer service, the company's financial stability, and others.
Because each policy is unique, the best policy for you may differ from the best policy for your neighbor. Discuss your appliances with your agent.
Consider a home warranty if you'd rather avoid the hassles of regular repair calls for older appliances. Although warranties can be costly, they eliminate the risk of system or appliance failure.