Are home appliances covered under home insurance?
Key points:
- Homeowners insurance generally covers appliances damaged by covered perils like fire, lightning and theft.
- Built-in appliances (e.g., furnace, hot water heater) are typically covered by dwelling coverage, while plug-in appliances (e.g., refrigerator, blender) are covered under personal property coverage.
- Coverage limits, deductibles, and policy type (actual cash value vs. replacement cost) affect how much homeowners will be reimbursed for appliance damage or loss.
- Homeowners insurance typically does not cover appliance issues resulting from age, wear and tear, or lack of maintenance.
Homeowners insurance typically helps cover the contents of your house, including home appliances, after specific events known as covered perils. However, it’s worth noting that coverage details can vary from company to company, and different appliances may be covered by different coverage types included in your homeowners policy.
Here's a look at some of the most commonly covered perils that may affect appliances and some of the circumstances in which appliances may not be covered by your homeowners insurance.
What perils does home insurance help cover?
From fire damage or lightning strikes to stolen appliances, here's a look at how different types of homeowners insurance coverage may help protect appliances.
Fire
Homeowners insurance generally helps cover losses caused by fires. Dwelling coverage may help pay to repair or replace a built-in appliance, like a furnace or central air conditioning unit. Personal property coverage typically helps pay to repair or replace the items inside your house, such as some appliances that are not built in, but simply plug into electrical outlets, if they are damaged or destroyed in a fire.
Lightning strikes
If lightning strikes your home and causes a power surge, the personal property coverage in a homeowners insurance policy may help pay to repair or replace damaged home appliances, such as a TV or refrigerator. Dwelling coverage may offer similar protection to built-in mechanical devices, such as furnaces and water heaters.
Theft of home appliances
Theft is another risk that is generally covered by homeowners insurance. If someone breaks into your home and steals belongings, including appliances that are not built in, the personal property coverage in a homeowners insurance policy will typically help cover the loss. But if someone makes off with a built-in appliance, dwelling coverage may help pay for the loss.
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get a quotePersonal property coverage limits and deductibles
Keep in mind that coverage limits and deductibles will likely apply before your homeowners insurance begins to help cover a loss. A limit is the maximum amount your homeowners insurance will pay toward a covered loss, and a deductible is the amount you'll pay out of pocket before your insurance will kick in to help cover a loss. Each type of coverage comes with its own limit, so be sure to review yours to make sure they fit your needs.
The type of personal property coverage you have also affects how much you'll be reimbursed for a covered claim. If you have actual cash value coverage, depreciation will be taken into account. That means your insurance reimbursement may not be enough to buy brand-new replacements if your appliances are damaged by a covered risk. Meanwhile, if you have replacement cost coverage, the amount you receive will be based on the cost of buying a new appliance in today's dollars.
When are home appliances not covered by homeowners insurance?
Appliance problems related to age, maintenance or regular wear and tear are typically not covered by homeowners insurance. If you're not sure what your policy covers, your insurance provider can answer questions and help you make sure your coverage limits and deductible fit your needs.
How to choose home insurance coverage for appliances
Chances are, you have different appliances than your neighbors and friends, so your homeowners insurance needs and wishes are probably different than theirs. When you go to shop around and compare homeowners insurance quotes, consider your unique situation and ask clarifying questions to make sure your appliances will be covered at a level you’re comfortable with.