Thinking about buying home insurance for added financial protection? That is a great move, but it depends on the circumstances. You need to know the homeowner insurance policies to understand which types of damage are covered and which are not.
It may cover home appliances damaged by covered perils such as theft, fire, lightning, or volcanic eruptions. But in the case of daily wear and tear, electrical or mechanical failure, old age of the appliance, etc., you cannot file a claim.
In this article, we will talk about home insurance, covered perils and what is not covered. Plus, how to make a claim and tips to protect your appliances. Keep reading!
What Is Home Insurance and What Does It Cover?
Home insurance is a type of property insurance that typically covers all costs for you and your household items in case of unfortunate circumstances. This kind of insurance is known as “HO-3” insurance. It mainly covers:
- Dwelling (built-in appliances present or installed inside your home like walls, roof, floors, and attached structures)
- Personal property (belongings like furniture, clothing, electronics, etc.)
One important thing to remember is that most homeowners insurance policies cover damage caused by specific covered events. Most policies have different deductible amounts that decrease your total claim amount.
For instance, you have $500k as dwelling coverage and $250k as personal property coverage. In case of personal property damage, you can only claim $250k.
Every insurer has different policies. For better coverage, you must ask your insurer about their home insurance policies, like HO-5. This helps you understand what is covered and what is excluded.
When Does Home Insurance Cover Appliance Repair?
Home insurance normally covers the cost of repair and replacement of all your home appliances damaged by covered perils. Basically, covered perils are the bad situations that damage your appliances. Below are the covered perils:
- Theft and Vandalism
Portable appliances like a microwave, oven, AC, washing machine, etc., fall under your personal property. If any of these are stolen from your house, you can file a theft claim, and also when appliances are damaged during a burglary or act of vandalism.
- Lightning Strikes
When lightning strikes your home, it can result in a power surge that damages the plugged-in appliances and electronics like TVs, furnaces, water heaters, etc. The personal property coverage in home insurance helps owners repair or replace the devices.
- Fire
If a fire burns your appliances such as a microwave, dishwasher, refrigerator, or stove, your insurer will bear the repair or replacement expense. The fire should be an accident like a wildfire or a kitchen gas leak, not a deliberate act.
- Water Damages
According to Forbes, water damage accounts for approximately 23.5% of home insurance claims. If a water pipe suddenly bursts or a water heater leaks accidentally, your home insurance will likely cover it. In most cases, gradual leaks are not included in an insurance policy.
- Wind and Hail Storms
During a windstorm, if your home or appliances are damaged, it will be covered under your homeowners’ insurance.
When Appliance Repairs Are Not Covered
There are certain conditions under which you can not claim your home insurance. These include:
- Routine Wear and Tear
Insurance is designed to provide support during sudden issues, not for routine wear and tear. Your claim will not be accepted in this scenario. For example, if you have a 12-year-old AC that stops because of age and regular use, your home insurance company won’t accept its claim.
- Earthquake
Damage done as a result of natural disasters like landslides, earthquakes, or sinkholes is not covered in the home insurance policy. In these situations, you may need to pay for professional appliance repair services yourself.
- Lack of Maintenance
If an appliance is not maintained properly and it stops working, your claim would be rejected because it is your responsibility to take care of your device.
- Gradual Damage
Slow rust, water leakage, etc., are scenarios that do not occur suddenly. Gradual damage takes a long time and does not fall under the home insurance policies.
- Manufacturing Issues
If your home appliance comes with a manufacturing issue like the use of cheap parts, defective components, etc., then the insurance company will not accept the claim.
How to File a Claim for Appliance Damage
Follow these simple steps to file a claim with the insurance company for appliance damage:
1. Identify The Cause
Firstly, identify the cause and extent of the damage.
2. Review Your Insurance Policy
Read your insurance policy to confirm that the damage belongs to the covered peril.
3. Document Supporting Things
Take clear pictures and videos of the damaged area of the appliance and keep them as supporting evidence.
4. Contact the Company
Contact your home insurance company as quickly as possible and submit all supporting documents.
5. Ask for Repair or Replacement
Submit your repair or replacement claim and they will decide whether to repair or replace it. If they deny, seek help from a professional. A trusted service like A One Appliance SLC can handle problems efficiently and help you save time and cost.
Why Are Appliance Claims Denied?
There are different reasons why appliance claims are denied and these are:
- You have not provided enough documents to the insurance company to satisfy them.
- The damage is not caused by a covered peril. For instance, mudslides are not covered for appliance repair Salt Lake City UT.
- Damage is done as a result of a lack of proper care.
- You did not file the claim on time.
- Your follow-up is very late.
- The price of damage exceeds your coverage amount.
Useful Tips to Protect Your Appliances
Here are the useful tips that help you protect your appliance from damage:
- Perform regular maintenance.
- Use surge protectors to avoid damage to electrical devices.
- Install the appliance professionally.
- Use dedicated or separate circuits for heavy appliances like the AC.
- Keep warranty documents and receipts safe.
- Do not overload appliances like a washing machine.
- During storms, unplug sensitive appliances
- Ventilate your home properly and keep your home appliances dry.
Conclusion
Home insurance generally helps cover appliances that are damaged by covered perils, including theft, windstorm, water damage, and fire. However, it does not cover routine wear and tear, earthquakes, landslides, etc.
Your claim can be denied if you do not file it, respond late, or do not maintain your device. In such cases, experts at A One Appliance SLC can help you repair the appliance professionally. Follow the above-discussed steps to protect your appliances and claim your home insurance.
Frequently Asked Questions (FAQs)
1. What is the difference between actual cash value (ACV) and replacement cost value (RCV)?
In actual cash value (ACV), your insurance policy covers the current cost of your property or appliance after depreciation. However, in replacement cost value (RCV), your insurance policy covers the cost of replacing your property or appliance with a new one of a similar kind.
2. What is a covered peril?
An immediate event that damages your appliance or property, such as theft, accidental discharge, lightning, etc., falls under the covered peril. As a result of such scenarios, the insurance company accepts your claim.
3. What is home insurance and a home warranty?
Home insurance typically covers the cost of your home and appliances in case of sudden damage or theft. However, a home warranty covers the service, repair, and replacement of various home appliances.
4. What is the 50/50 rule for appliances?
For appliances, the 50/50 rule states if your appliance repair cost is going above 50% of the price of a new unit with the same specs, then it is better to replace that appliance.
5. Does home insurance cover appliances damaged by a power outage?
It depends on whether the damage is caused by a covered peril or not. If the power outage was caused by a covered peril, home insurance will cover it; otherwise, it will not.