Alyssa Lane
Homeowners insurance policies typically cover appliances under personal property, dwelling, or other structures coverage. The type of coverage depends on whether the appliance is built-in or portable. Built-in appliances, such as a furnace or hot water heater, are covered under dwelling coverage, while portable appliances like refrigerators and microwaves are covered under personal property coverage. Appliances in detached structures may be covered by other structures coverage. It's important to note that standard homeowners insurance policies may not cover appliance damage due to floods, earthquakes, or sewer backup, and additional coverage may be required for high-value appliances.
| Characteristics | Values |
|---|---|
| What is covered under dwelling value? | Built-in appliances, such as a furnace, hot water heater, or built-in stovetop. |
| What is covered under personal property value? | Portable appliances that can be plugged into an outlet, such as refrigerators, ovens, microwaves, and dishwashers. |
| What is not covered by standard insurance policies? | Flooding, earthquake damage, sewer backup, war, nuclear hazard, neglect, intentional loss, and mold damage. |
| How to ensure coverage for high-value appliances? | Consider additional coverage options such as scheduled personal property or extended replacement costs. |
| How to file a claim? | Document your appliances by keeping an inventory of their make, model, and serial numbers, and photograph or video each appliance to capture its condition. |
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What You'll Learn
Built-in appliances are covered under dwelling insurance
Homeowners insurance does cover appliances, but the type of coverage depends on the appliance and how it is installed. Built-in appliances, such as a furnace, hot water heater, or built-in stovetop, are typically covered under dwelling insurance. This means that if your built-in stove catches fire, your dwelling coverage may cover the repairs.
Dwelling coverage applies to items that are affixed to the property and considered part of the dwelling. For example, a dishwasher is usually considered part of the dwelling because it is stuck under the cabinets and requires tools to be removed. Similarly, a range or stovetop may be considered built-in if it has clips mounted to the ground to prevent it from tipping over.
On the other hand, portable appliances such as microwaves and refrigerators that can be easily moved or unplugged are typically covered under personal property insurance. If you have appliances in a detached structure, such as a garage or shed, these may be covered under "other structures" insurance.
It is important to note that standard homeowners insurance typically covers damage from specific perils, such as fire, and may not cover mechanical or electrical breakdowns, wear and tear, or damage from flooding or earthquakes. To protect against these events, homeowners may need to purchase additional coverage, such as equipment breakdown coverage or a home warranty.
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Portable appliances are covered under personal property insurance
Homeowners insurance policies classify appliances based on whether they are built-in or portable. Built-in appliances, such as a furnace or a stovetop, are covered under dwelling coverage. On the other hand, portable appliances like microwaves and refrigerators are typically covered by personal property insurance. Personal property insurance, also known as home contents insurance, protects your belongings from damage and theft. While the specifics depend on your chosen policy, this insurance generally covers your possessions within your home's walls, including appliances, up to a certain limit.
Personal property coverage typically includes appliances that can be plugged into an outlet, such as refrigerators, washing machines, ovens, and dishwashers. It's important to note that the specific appliances covered may vary between insurance providers, so it's always advisable to confirm with your insurance company. Additionally, personal property insurance usually does not cover wear and tear, maintenance, or operational issues related to the age of an appliance.
While flooding, earthquakes, and sewer backup are generally not included in standard home insurance policies, damage to appliances caused by a fire after an earthquake would likely be covered. To protect against flooding and earthquake damage, separate insurance policies are often required.
If you have valuable appliances that you want to ensure are adequately covered, you may consider purchasing equipment breakdown coverage or an extended warranty for those specific items. This optional coverage can be added to your homeowners insurance policy and protects against mechanical or electrical breakdowns, offering more comprehensive protection for your appliances.
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Additional coverage may be needed for high-value appliances
Homeowners insurance policies typically classify appliances as either built-in or portable. Built-in appliances, such as a furnace or stovetop, are covered under dwelling coverage, while portable appliances like microwaves and refrigerators fall under personal property coverage. Separate structures coverage may apply to appliances located in structures outside the primary residence, such as a detached garage. It's important to note that standard policies generally cover damage from specific perils like fire or theft, excluding wear and tear or manufacturer defects.
While homeowners insurance provides broad coverage for appliances, certain circumstances may warrant additional protection. If you own high-value appliances or seek comprehensive coverage against various risks, consider the following options:
- Scheduled Personal Property: This coverage allows you to list and insure valuable items individually, providing higher limits and broader protection for your high-value appliances.
- Extended Replacement Cost: This option offers additional coverage beyond your policy limits, ensuring you're protected in cases of high repair or replacement costs for your appliances.
- Equipment Breakdown Coverage: This optional add-on to your policy protects against mechanical or electrical breakdowns, filling in gaps not typically covered by standard homeowners insurance.
- Home Warranty: Available from private companies, a home warranty can cover repairs and replacements due to wear and tear, though it may not cover all specific items or circumstances.
By reviewing your policy's coverage limits, deductibles, and exclusions, you can make informed decisions about additional coverage options to adequately protect your high-value appliances.
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Flood and earthquake damage are not covered by standard insurance
Homeowners insurance covers appliances under specific circumstances. Built-in appliances like a furnace or built-in stovetop are covered under dwelling coverage, while portable appliances like microwaves or refrigerators are covered under personal property coverage. Appliances in separate structures on your property may be covered by other structures coverage.
However, standard homeowners insurance does not cover damage caused by flooding or earthquakes. Flood insurance and earthquake insurance are typically separate, supplemental policies that must be purchased in addition to standard homeowners insurance. This is because floods and earthquakes can cause extensive damage that standard insurance policies may not be designed to cover. For example, if your house slides off its foundation during an earthquake, you will need to file a claim with your earthquake insurance provider, not your standard homeowners insurance.
Flood insurance is often required by mortgage lenders in high-risk areas, and some lenders also require borrowers to purchase flood insurance in medium-to-low-risk locations. Even if it is not required, it may still be a wise investment, as more than 20% of flood damage claims come from outside areas of the highest risk. Flood insurance can be purchased through private insurance companies or through the National Flood Insurance Program (NFIP).
Similarly, earthquake insurance is worth considering, especially if you live in an area with a high risk of seismic activity. Traditional earthquake insurance covers damage caused by the earthquake itself, such as structural damage to your home, a cracked foundation, or a crumbled chimney. Parametric insurance is a newer form of earthquake insurance that insures policyholders against specific events by using parameters (set criteria that apply to everyone) to determine the cost of the damage. If you live in an area with a high risk of seismic activity, it is important to review your policy with an insurance broker to ensure you have the right coverage.
It is worth noting that if an earthquake or flood causes something else, such as a fire, your regular homeowners insurance policy may kick in to cover the damage. Additionally, damage to your car from a flood or earthquake is typically covered by your auto policy.
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Appliance insurance can be purchased separately
Homeowners insurance policies typically cover appliances, but the type of coverage depends on whether the appliance is built-in or portable. Built-in appliances like a furnace or stovetop are generally covered by dwelling coverage, while portable appliances like microwaves and refrigerators are covered by personal property coverage.
However, standard homeowners insurance policies may not cover appliance damage in certain situations, such as flooding, earthquakes, or sewer backup. If you want protection against these events, you may need to purchase separate insurance policies or endorsements.
Additionally, if you have high-value appliances or want extra protection, you can consider purchasing appliance insurance separately. While there is no specific "home appliance insurance", some insurers offer equipment breakdown coverage, which can be added to your homeowners policy to protect against mechanical or electrical breakdowns. You can also purchase a home warranty from private companies, which covers appliances that may not have a warranty or adequate coverage under your existing policy.
To ensure your appliances are adequately covered, carefully review your homeowners insurance policy to understand the coverage limits, deductibles, and any exclusions related to appliances. If your appliances exceed the coverage limits, you may need to explore additional coverage options, such as scheduled personal property or extended replacement costs.
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Frequently asked questions
Dwelling coverage helps pay to repair or rebuild your home if your property is damaged. Personal property coverage helps replace your personal belongings if they are stolen or destroyed. Appliances are classified as personal property if they can be plugged into an outlet, such as refrigerators, ovens, and microwaves. Built-in appliances, such as a furnace or hot water heater, are covered under dwelling coverage.
Homeowners insurance covers appliances under specific circumstances. Appliances are typically categorized as personal property and are insured against common perils such as fire, theft, vandalism, and accidental damage. Coverage is generally for damage from covered perils, not wear and tear or defects.
Standard homeowners insurance policies do not typically cover damage from floods, earthquakes, or sewer backup. Additionally, most policies do not cover losses due to ordinances or laws, earth movement, mould, war, nuclear hazard, neglect, or intentional loss.
