Residential Equipment Breakdown
When everyday systems fail, we help keep your home running smoothly.
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What's covered. And everything else.
Covered
- Heating, ventilation, and air conditioning (HVAC) systems
- Electrical systems and panels
- Water heaters and plumbing systems
- Built-in kitchen appliances (like ovens, refrigerators, and dishwashers)
- Home generators
- Smart home systems and connected technology
- Mechanical and electrical breakdown caused by power surges, motor burnout, or mechanical failure
Not covered
- Normal wear and tear or routine maintenance
- Damage caused by improper installation or neglect
- Manufacturer defects covered by warranty
- Breakdown due to flood, earthquake, or other excluded perils
- Cosmetic damage that does not affect functionality
- Commercial-use equipment in a residential setting
And answers.
Common questions. And answers.
What is Residential Equipment Breakdown coverage?
Residential Equipment Breakdown is an add-on to your home policy that covers the sudden mechanical or electrical failure of major home systems and appliances — like your HVAC, water heater, electrical panel, or built-in kitchen appliances. Standard homeowners insurance covers damage from events like fire or storms, but not the equipment simply breaking down. This endorsement fills that gap.
How is this different from a home warranty?
A home warranty is a service contract that sends a contractor to repair items that wear out over time, usually with service fees and coverage caps. Equipment Breakdown is insurance that pays for sudden, accidental failures — including damage from power surges or electrical shorts — and works alongside your homeowners policy and deductible. Many homeowners carry both for fuller protection.
Does this coverage include power surge damage?
Yes. Damage caused by a power surge, electrical arcing, or a short circuit is one of the most common Equipment Breakdown claims. If a surge knocks out your HVAC system, well pump, or connected smart-home devices, the resulting breakdown is covered.
How much does Equipment Breakdown coverage cost?
It depends on your home, your systems, and the coverage limit you choose. Because it's an endorsement on your existing policy rather than a standalone policy, it's typically a small addition to your annual premium. Your agent can give you an exact quote.
How do I add Residential Equipment Breakdown to my policy?
Just talk to your Lilypad agent. Equipment Breakdown is added as an endorsement to your existing homeowners or dwelling policy, so there's no separate application — your agent can add it and confirm your updated premium in minutes. Find an agent to get started.
Available Discounts:
Discounts vary by state and program and may be subject to underwriting eligibility and filings.
Important: Coverage availability, terms, limits, and exclusions vary by state and program. The policy governs; this website is a high-level summary and does not modify or replace the policy.