Your home’s appliances and systems work hard – until they don’t. Whether it’s an A/C unit failing in the middle of a Florida heat wave or an underground water line giving out, you’ll want to protect your home’s systems and service lines.
Many homeowners turn to service contracts (aka home warranties) for peace of mind, while others look at equipment breakdown & service line insurance, which can be added to a members policy. But which one actually delivers when it matters most?
Let’s break it down so you can choose the best option to protect your home’s systems and service lines.
What Is Equipment Breakdown Insurance?
This insurance covers sudden and accidental failures of major home systems and appliances, including:
- HVAC systems, pool pumps, and home generators
- Refrigerators, dishwashers, and ovens
- Washers, dryers, and water heaters
- Electrical panels and built-in electronics
With a $100K coverage limit for just $50 per year, it’s one of the most affordable ways to protect your home’s systems and service lines from costly failures.
What it doesn’t cover:
- Normal wear and tear
- Failures already covered by an active manufacturer’s warranty – or your homeowners policy
Real-World Example:
Your built-in wine fridge’s cooling system fails due to an electrical malfunction. The manufacturer’s warranty expired last year, so instead of paying $2,500 for a replacement, equipment breakdown insurance covers it after your $500 deductible is paid.
What Is Service Line Insurance? (& Why it’s a Must-Have for Florida Homes!)
Service line insurance covers underground utility lines bringing water, electricity, gas, and sewage to and from your home. These lines can crack, leak, rupture, or collapse due to:
- Tree root invasions
- Shifting soil
- Wear and tear over time
- Rust, corrosion
- Mechanical breakdown
- Defect
Without service line coverage, homeowners must pay thousands for excavation, repair, and restoration – costs not covered under a standard homeowners policy.
Bonus: You can only purchase service line insurance bundled with equipment breakdown insurance, but for just $30 more per year.
What it doesn’t cover:
- Blockages or low pressure if the piping itself isn’t damaged. While service contracts may offer coverage for minor plumbing clogs, they often exclude full replacement of broken service lines – which is where service line insurance steps in to protect your home’s systems and service lines when the damage is serious.
Real-World Example:
A tree root cracks your underground sewer line, causing a major backup. A plumber quotes $7,500 for excavation and repairs. Instead, service line insurance covers the cost after your deductible.
What Is a Service Contract aka Home Warranty?
A service contract is a third-party agreement covering repairs for home systems and appliances, typically including:
- HVAC, plumbing, and electrical systems
- Kitchen and laundry appliances
- Water heaters and pool equipment
Unlike equipment breakdown insurance, service contracts usually cover wear and tear, which is a major advantage for older appliances and systems. However, they may also come with:
- Limited replacement coverage – they typically cover repairs, not full replacements
- Service fees you pay for each repair
- Restricted technician choices – requiring you to use their network of providers
Real-World Example:
Your dishwasher’s motor burns out after years of use. You call the home warranty company, who sends a technician 3 days later. They approve the repair, but you must pay a $100 service fee and wait another 2 weeks for the part to arrive.
Key Differences: Equipment Breakdown & Service Line Insurance vs. Service Contracts
Both options provide protection for your home’s essential systems and appliances, but they work in very different ways. Service contracts focus on repairs for wear and tear, while equipment breakdown & service line insurance steps in for sudden, costly failures. The chart below highlights how they compare so you can decide which coverage best fits your needs.
Reality Check: Is Equipment Breakdown & Service Line Coverage Worth It?
Let’s be honest: Equipment breakdown insurance covers many instances when things can go wrong saving you thousands:
- When something fails suddenly and unexpectedly, the cost is high.
- A new pool pump: $1,500+
- A broken smart refrigerator: $3,000+
- A failed standby generator: $4,000+
- It’s a $100K policy for just $50 a year.
- Unlike service contracts, this pays for full replacements when needed.
- Service line failures are more common than homeowners realize.
- Many people don’t think about their underground pipes until they have to replace one. Then it’s a $6,000+ problem.
- Adding service line insurance for just $30 more means you’re covered for these all-too-common repairs.
The Smart Way to Protect Your Home’s Systems and Service Lines
Unexpected breakdowns and service line failures can lead to expensive repairs and major disruptions. Choosing the right coverage ensures you’re prepared for whatever comes your way.
Here’s why equipment breakdown & service line insurance is a smart addition to your homeowners policy:
- Home warranties and equipment breakdown insurance aren’t the same – each serves a different purpose.
- Service contracts may cover wear and tear, but they come with service fees and repair limitations.
- Equipment breakdown & service line insurance steps in where your homeowners insurance stops – covering major repairs otherwise costing you thousands.
- For just $50/year (or $80/year with service line coverage), it's one of the most affordable ways to protect your home’s systems and service lines.
Talk to your Ovation agent today about adding equipment breakdown & service line insurance to your policy.
Not with Ovation Home Insurance Exchange yet? Visit our website to get a quote and protect your home’s systems and service lines with confidence.