The appliances in your home make it possible to live comfortably and manage many of your daily activities. Today’s high-tech appliances can also be costly to replace, and having help with covering the cost of replacing them after a disaster helps you get back to living normally faster. As a general rule, your homeowners insurance is unlikely to cover normal repairs or replacement costs for your home appliances, but damage from major catastrophes is likely to be covered. When it comes to knowing what types of appliance issues are covered by home insurance, San Diego homeowners should follow these guidelines.
Understand What Types of Events Lead to Appliances Being Covered
Simply having an appliance wear out isn’t usually a reason for insurance to cover the cost of replacement. Instead, appliances are usually covered when they’re damaged by perils that affect the rest of the home. For instance, a house fire could destroy your home appliances, or they could be damaged by a lightning strike.
Know Which Types of Appliances Are Covered
The first thing you’ll want to know is that appliances tend to fall into two different categories when it comes to insurance. The first category includes non-attached appliances, such as a refrigerator or washing machine. These typically plug into the wall, and most policies include these in personal property coverage. The second category includes appliances that are built into your home, such as an HVAC system or water heater. These will usually be included in the dwelling coverage of your policy.
Check Your Policy for Specific Coverages
While homeowners insurance can cover appliances, you’ll want to remember your policy might differ from a neighbor’s. When you purchase your homeowners insurance, make sure to mention anything that’s unusual about your home that might affect the types of coverage you need. For example, a home with an additional building in the backyard might need coverage for that structure as well. This is especially important if it has a kitchen, workshop, or other features that involve adding appliances.
Know Coverage Limits & Deductibles
As with other types of insurance, you may need to pay a deductible before your insurance policy covers the rest of the cost for replacement. There might also be a limit on how much the insurance company is obligated to pay for the damage to your home. If you have expensive appliances, it’s worth making sure you have adequate coverage to meet your needs if the worst should happen.
Maintain an Inventory of Your Appliances
Insurance companies have several different methods for calculating your coverage after you file a claim. For instance, actual cash value coverage may take depreciation into account, which could lower the amount you receive if the appliances are several years old. Keeping an up-to-date inventory of the appliances you own along with their manufacture date and any upgrades helps you get a fair payout if you ever need to file a claim.
If you own a home or are considering buying one, take the time to understand exactly what your homeowners insurance policy does—and doesn’t—cover. The friendly professionals at Altra Insurance Services will be happy to help you examine your current policy and determine if you have the coverage you need. We can also help you with renters insurance, commercial insurance, and motorcycle and auto insurance. Call one of our friendly agents today at (800) 719-9972.