Does Home Insurance Cover Appliances?

In many homes, appliances and electronics are among the most valuable items in the house. Let’s face it. Your favorite 10-year-old concert t-shirt (with holes in it) probably is not worth much — at least in terms of dollars and cents. Your fridge, however, may be worth hundreds or even thousands. The same might apply to the collection of computers, phones, tablets, and smart TVs found in any households.

Your home insurance policy — or renters’ policy — can help protect these appliances and electronics from a broad range of risks. Accidental fires? Yes, your policy covers that. Many types of water damage are covered as well. Your home insurance policy can even cover your electronics when away from home, such as personal items in your car.

There are some limits to your coverage to be aware of, however. For example, your home insurance will not cover breakage if the damage isn’t caused by a covered peril — or if the peril is excluded from coverage. If you drop your new cell phone and break the glass, your policy cannot help. If your new phone is stolen, however, your policy may be able to help. But the amount of the loss can play a role as well.

Let’s say you have a deductible of $1,000 and your $800 phone is stolen from your car. The deductible is the part of the claim you pay. In this example, your policy will not pay to cover the claim because the claim amount is less than the deductible. If you do not know how much your deductible is, you can find it in your policy. It is also a good idea to review your coverage about once a year to be sure your coverage still meets your needs. Life changes.

A standard home insurance policy will not cover mechanical failures or wear and tear for your appliances and electronics. Instead, your policy covers your personal belongings for a specific set of risks. Fortunately, these include common risks that can lead to big losses, such as fire, theft, and much more.

To learn more, or if you have any questions regarding your insurance, speak to your broker today.