Does home insurance cover appliances?

Home insurance may cover appliances, but it often depends on the circumstances surrounding the loss. When a covered event damages an appliance, there’s a good chance your homeowners policy covers the cost of repairing or replacing it. But if an appliance breaks down over time, you’ll likely be on the hook for the cost of repairs or replacement.

How are appliances covered under a home insurance policy?

The type of appliance damaged will determine which part of your home insurance policy comes into play. Generally, an appliance may be covered under one of the following policy components: 

• Personal property coverage. This part of your policy covers appliances not typically built into the structure of your home, such as refrigerators, washers, dryers, and microwaves. 

• Dwelling coverage. This part of your policy covers appliances that are often built into the structure of your home, such as a heater, furnace, or household HVAC system. 

However, just because your insurance covers an event doesn’t mean your payout will cover exactly what it costs to replace your appliance. Most policies have maximum coverage amounts and deductibles that reduce your total claim payout.

In addition, personal property coverage is generally limited to a percentage of your dwelling policy, such as 50% or 70%. For instance, if you have $300,000 in dwelling coverage and your personal property coverage is 50% of that, your total limit for a claim for personal property is $150,000. 

Further, the amount you’re reimbursed will also depend on policy specifics, such as whether you have actual cash value (ACV) coverage, which pays out at the depreciated value, or replacement cost coverage, which pays to replace the property with items of similar or equal quality without depreciation.  

When does home insurance cover appliances?

Homeowners insurance typically covers the cost of repairing or replacing an appliance if a covered peril caused the damage. Most insurers cover perils like the sudden and accidental events listed below.

Electrical surge

If a sudden voltage spike or power surge damages your appliances, your home insurance company may compensate you for the loss. 

However, power surges can have several causes, including old or faulty wiring, lighting strikes, or issues and events stemming from your power company. Though a standard homeowners policy frequently covers damages from those incidents, coverage specifics can vary by the insurer, type of surge and resulting damage.

Fire

House fires are one of the most common claims filed by homeowners, and even a small fire can damage your appliances beyond repair. But as long as the fire was an accident and not an act of deliberate arson, your insurer will likely cover your damaged appliances.

Sudden and accidental water damage

Home insurance policies usually cover sudden water damage, such as that caused by a burst pipe or unexpected water heater leak. If your appliance is damaged due to the sudden influx of water, your homeowners policy will likely cover it. However, keep in mind that some insurers limit coverage for this type of water damage or even exclude it altogether. It’s essential you read your policy to identify any limitations. 

However, your policy will likely exclude damage to an appliance if the water damage was caused by a known issue, such as a long-term leak or wear and tear.   

The same goes for flood damage. While flooding can be sudden and unexpected, most home insurance policies do not cover the resulting damage. That’s why some homeowners supplement their standard homeowners policy with flood insurance.

Theft

Theft is a commonly covered peril, so you can usually file a claim with your insurance company if your home is broken into and your appliances are stolen. As is the case for each of the perils above, the item stolen will indicate the type of claim you should make.

When doesn’t home insurance cover appliances?

Home insurance is designed to protect your finances from sudden, unforeseen events. As a result, standard policies exclude several situations that can cause losses for homeowners. Common exclusions include:

• Mechanical failures 

• Normal wear and tear

• Improper or lack of maintenance

• Manufacturing defects

Additional protection options

If your appliance is damaged or stolen, filing a claim may not always be the answer. For instance, if the damage is a result of one of the common exclusions above, your insurer won’t cover repairs or replacements. And in some circumstances, filing a claim may not always be worth it after you pay the deductible. 

Here are some common avenues you can explore:

Manufacturer warranties. Most appliances come with a manufacturer's warranty. These warranties often cover defects for a specific period of time. If your appliance fails within that window, see if it’s eligible for a warranty claim.  

Keep in mind that many companies ask you to register your product upon purchase, and registration may be an eligibility requirement for filing a claim. It’s also wise to keep your receipt and any paperwork that comes with the appliance. 

Extended warranty. An extended warranty is a protection plan often offered by manufacturers and/or third-party providers. It extends coverage past the original manufacturer warranty. According to Angi, a website that helps consumers find home repair professionals, extended warranties start at about $20 for small appliances but can be more than $500 for major appliances. You may have to pay the fee at the start of the warranty or as a monthly payment. 

Equipment breakdown coverage. Equipment breakdown coverage is an endorsement that you can sometimes add to your home insurance policy. Usually, these plans cover electric and mechanical failures that aren’t covered by a standard homeowners insurance policy.  

Home warranties. A home warranty is a service contract that covers repair or replacement costs for major home systems and appliances due to normal wear and tear. These are sold separately from insurance policies.