Equipment Breakdown and Service Line Coverage


Your home is meant to be a safe haven for you and your family, but is it fully protected from home equipment breakdown or service line issues? Some insurance carriers automatically include these coverages, but with others you may have to ask for them to be added to your policy. If you aren’t aware of these additional endorsements, you may find yourself unexpectedly having to foot the bill for expensive equipment failures. So what are Equipment Breakdown and Service Line endorsements, and why are these important coverages to consider for your home? Let’s take a look!


Equipment Breakdown 

Equipment breakdown insurance is coverage for loss caused by a sudden accidental mechanical or electrical breakdown to many types of equipment, including but not limited to: HVAC systems, boilers, furnaces, water heaters, electrical panels, home security systems, generators, well pumps, filtration systems, pool equipment, and more.

If repair is not possible, this coverage will also cover replacement of the damaged equipment with a similar system that is more environmentally friendly, safer, or more energy/water efficient.


My equipment is covered by a warranty, why would I need additional insurance coverage?

Keep in mind that warranty protection and service contracts are often limited both in scope and in time frame. The majority of warranties offer protection for only one specific piece of equipment and are only available for certain time period. In addition, they may not cover all of the parts, labor, or shipping fees required for full and complete repair. Full home warranties can be cost-prohibitive, and service contracts are often intended for seasonal maintenance. With equipment breakdown coverage, you get a wider scope of coverage for a more reasonable fee.

Basically, equipment breakdown coverage is designed to cover major equipment and systems in your home while providing you with financial protection. Coverage includes accidental breakdown, even one caused by human error, improper installation, or lack of maintenance. Loss of use is included, and there is no restriction on age of the equipment.


Service Line

Did you know that if there is an issue with service line piping and wiring on your property, you are responsible for repairing or replacing them? The expense of repairing or replacing underground service lines can be astronomical and is not covered by most home insurance policies. Service line coverage provides compensation for damage to cover service lines that is the direct result of a service line failure.


What is considered a “covered service line”?

Covered service lines are the underground and exterior piping or wiring located on your property, for which you are legally liable for repair or replacement.

They include underground and exterior:

  • Water pipes that connect the home or other structures to a public water supply system, private well system, retention pond, or external heating system.
  • Sewer pipes that connect the home or other structures to a public sewer system or private septic system.
  • Power lines or other electrical wiring.
  • Drain pipes that direct water away from the home or other structure.
  • Ground loop pipes that connect to a heat pump.
  • Communication or data transmission wires.


What is considered a “service line failure”?

A service line failure is physical damage that results in a leak, break, tear, rupture, collapse, or arcing of a covered service line. Physical damage can be caused by external events or environmental conditions such as tree root invasion, deterioration, freezing, and electrical arcing.


So what are the benefits of Service Line Coverage?

Highlights of this type of coverage include physical damage to a covered service line that is the direct result of the service line failure. This includes excavation cost and any damage that occurs to outdoor property during excavation. It also includes loss of coverage for additional living expenses, and compensation for fair rental value is available if your residence becomes uninhabitable for a period of time due to a service line failure. This includes the cost of hotels, meals, rent or other necessary living expenses. It also pays for generators or other temporary equipment that would allow you to remain in your residence.

In the event that a covered service line cannot be repaired, there is also additional coverage for materials that are more environmentally friendly, safer, or more energy or water efficient. These are potentially all very large expenses that service line coverage can spare you from having to pay out of your own pocket!


What about a utility line contract?

Protection offered by utility line contracts is typically limited to the specific utility offering the contract, such as the water and electric companies. These contracts can be cost-prohibitive and only provide limited coverage. Service line coverage offers much more comprehensive coverage, including coverage for loss of use and environmental, safety, and efficiency improvements.

Many Homeowner insurance policies typically do not offer coverage equipment breakdowns or service line issues, but they can prove to be very costly situations when issues arise. That’s why it’s so important to have the right insurance coverage to make sure your house stays in tiptop condition without having major unexpected financial burdens.

Have questions about how these coverages can work for you or with your current policies? Galvin Agency can help!




Did you Know?

We offer a wide variety of insurance products to include Home, Auto, Life, Annuities, Motorcycle, RV, ATV, Boat, Small Business, Rental, Umbrella, and Equine Mortality/Major Medical coverage.
Galvin Agency is here to assist you, and our job is to make sure you feel protected and knowledgeable. Thank you for your business and we look forward to talking with you soon!

No person associated with this news letter receives any form of compensation for any products mentioned, nor should any mention of a particular product be considered an endorsement of that product. This newsletter is for informational purposes only and should not be considered authoritative on any topic. Please seek advice from an appropriate professional on any specific issue.

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