Many agencies are now offering two new and exciting coverages at a very affordable price. Adding these endorsements to your Homeowners policy is simple – it just takes a phone call or email. These coverages are called Equipment Breakdown Coverage and Service Line Coverage.
What is Equipment Breakdown and what does it cover?
Equipment Breakdown Coverage: This is an optional coverage called an endorsement that provides coverage for accidental direct physical loss to covered property caused by equipment breakdown. The wear and tear exclusion in the policy applies to this coverage. Covered losses must be direct, accidental, and sudden, such as a broken part or electrical arcing. Routine performance failure due to age is not covered. A deductible applies to each occurrence at $500. When you consider the cost of appliances, electronics, HVAC – a $500 deductible is much more affordable than paying thousands to replace the damaged items.
For just $2 – $3 a month, Equipment Breakdown Coverage is a cost-effective way to keep critical household equipment up and running after a mechanical or electrical breakdown—which are often not covered under a standard Homeowners policy. Some of the coverage highlights include:
What is Service Line Coverage?
Service Line Coverage: This is an optional coverage called an endorsement for physical loss or damage to covered service lines on the residence premises that is the direct result of a service line failure. Covered losses include, but are not limited to, wear and tear, rust and corrosion, mechanical breakdown, freezing or frost heave, and tree or other root invasion. Coverage is limited to that part of the service line running from the point of connection to the main service or utility line up to the dwelling.
For $3 to $4 a month, Service Line Coverage is a cost-effective way to insure against service line failures – which are often not covered under a standard Homeowners policy. Some of the coverage highlights include:
Several years ago, a client had a crushed sewer line under the driveway which was damaged at the time the home was built. Over the years, the pipe became blocked and water and sewer backed up into the garage and basement. At the time, this coverage was not available, so the homeowner had to pay to have the driveway removed, a new pipe installed, rock and dirt brought in for fill, a new driveway poured and the garage and basement sanitized. The cost was over $7,000. The city did not provide assistance since their coverage is limited to 10 feet from the maintenance cover in the street. Had this coverage been available, the homeowner would have only paid $500 instead of $7,000.
This is a very affordable and valuable coverage that could save the homeowner thousands of dollars. Give Colorado Insurance Team a call today for a quote 720-432-7165.