Homeowners insurance is a big asset to have when you buy a home. Not only will the policy cover the house itself, it will also cover a variety of the items inside. This includes your appliances like stoves, refrigerators, water heaters or HVAC units. However, you’ll still have to pay attention to your policy’s terms to ensure that it adequately safeguards you against appliance damage.
What Portion of My Policy Pays? 
Most home insurance covers damage to both the house and the possessions inside. They will usually cover these items under separate portions of your policy called structure insurance and possessions insurance. Appliances will usually fall under your possessions insurance.
When Will Coverage Pay?
Under possessions insurance, your appliances will have coverage when they sustain damage from a variety of unexpected hazards. If a fire damages appliances for example, then your policy might pay to repair or replace these items. Losses from theft, vandalism, severe weather and more might also have coverage.
Additionally, some homeowners policies include coverage called equipment breakdown insurance. This coverage pays when an unexpected hazard causes mechanical items to fail. For example, if a power surge fries your stove and refrigerator, then your policy might pay for the necessary repairs or replacement. These are often more routine than losses caused by severe perils. However, they still might merit coverage because you could not predict the damage.
When Will I Not Have Coverage?
Homeowners insurance is nevertheless not all-encompassing. There are a variety of cases where policies might not automatically cover appliances.
- Policies include deductibles in most cases. If damage to an appliance costs less than your deductible value, your policy won’t pay.
- Some policies only pay for an actual cash value (ACV) settlement for damaged item. So, if something destroys an appliance, your insurer might only compensate you for the used value of the appliance at the time of the loss. To get coverage for the full value, you might need a policy that offers replacement cost value (RCV) coverage.
- Appliances that wear out or receive damage due to neglect will not have coverage.
- Cases of normal wear and tear do not qualify for coverage. These are not unexpected throughout the life of the appliance.
- If you could have avoided a hazard, then your policy might not pay.
If you are want to get more expansive coverage for appliances, then you might be able to buy special insurance endorsements. You might also choose to buy appliance warranties for each items. However, these will contain their own differences that limit when you can use them. Work with your agent to tailor your possessions coverage regardless of any warranty.