In 2020, New Jersey had over 1,078,146,000 property insurance claims paid. It is necessary to have equipment breakdown coverage for a loss. This could save you thousands of dollars in replacement or repair costs.
An independent insurance agent can help find a policy for a fair price. They have access to multiple markets, giving you options on coverage. Connect with a local expert to get quotes today.
What Is Equipment Breakdown Insurance?
In New Jersey, equipment breakdown coverage can be obtained on your homeowners and business insurance alike. In some cases, it is included at a pre-set limit that can be adjusted. Both policy options are specific to you.
- Equipment breakdown coverage: This will pay for the repair or replacement cost of an electrical, mechanical, or pressure systems breakdown.
Without accurate limits of equipment breakdown protection in either scenario, you could be at risk. When and if a loss occurs, you will be financially responsible. To maintain sufficient coverage, consider reviewing your policy in detail.
What Does Equipment Breakdown Insurance Cover?
Your New Jersey equipment breakdown coverage will include protection for several different claims. It is different from regular property insurance, and therefore, both are necessary. It will provide insurance for the following types of equipment and damage.
- Power surges
- Electrical shorts
- Mechanical breakdowns
- Motor burnout
- Operator error
Equipment can typically include the following items
- Air conditioners
- Heavy machinery
- Contractors equipment
Equipment Breakdown Coverage under Home Insurance
Homeowners insurance in New Jersey will have an average premium of $1,192. Part of that cost should include equipment breakdown coverage. Some carriers may require this limit to be endorsed and not automatically included.
This policy option will usually start at $10,000 in coverage and can be adjusted. The amount you select will depend on your assets and how much it would cost to replace them. When you're trying to determine the amount of protection needed, consider asking an adviser.
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Equipment Breakdown Coverage under Commercial Insurance
New Jersey had $13,470,081,000 in commercial insurance claims paid in 2019 alone. The value of each piece of equipment your business owns will be taken into account when rating your policy. Equipment breakdown coverage can be included in your business property insurance. It may also be separate insurance depending on your carrier offerings.
When a claim happens, your business could be out of commission. This would result in lost income as well as extra expenses. Equipment breakdown can help a business pay for the following.
- The repair or replacement of damaged equipment
- Lost income resulting from damaged equipment
- Spoiled inventory like food or other products
- Additional expenses accumulated as a result of damaged equipment
Does Business Property Insurance Cover Equipment Breakdown?
Your New Jersey business property insurance will protect against different perils. Equipment breakdown insurance will include a separate set of coverages. Business property insurance covers the following items.
- Natural disasters
Equipment breakdown coverage will apply for instances outside of the above losses. Business property insurance will exclude power surges, electrical shorts, mechanical breakdowns, motor burnout, and operator error. Both coverages are needed for adequate protection.
How to Connect with a New Jersey Independent Agent
New Jersey equipment breakdown coverage can be applied to both business and personal policies. Coverage is in addition to your standard property protection and insures your items for different exposures. When you're trying to find sufficient coverage, consult with a professional.
An independent insurance agent can help. They have access to several carriers, giving you options on policy and premiums. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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