Equipment breakdown coverage and home warranty are two coverages for appliances and home systems in your house. Sometimes people get confused about these two, and they may choose the one that is not best for them.
Here are some Q&A about the two coverages, and we hope it will help you make the best choice for yourself.
What is equipment breakdown coverage (EBC) and home warranty?
| Equipment Breakdown Coverage (EBC) | Home Warranty |
| It is a simple upgrade, and you can add it to your insurance policy. However, not all insurances carriers have it as an option. | It is a contract that covers repairs and replacements on systems and appliances in your home, usually for one year. |
What is included in these two plans?
Both cover major home appliances such as fridges, dishwashers, laundry machines, air conditioning and heating units, water heaters and furnaces powered by the utility company.
What is the differences in coverage?
Equipment breakdown Coverage (EBC)
Home Warranty
Covers sudden, direct, accidental damages:
- Mechanical breakdown
- The electrical breakdown from a power surge
- Improper installation causing a breakdown
- Pressure systems breakdown
Not covered:
- Damage from wear and tear.
- Neglect to equipment or systems
Covers all general wear and tear:
- Home appliances
- Electrical systems
- Plumbing system
- Heating and air conditioning systems
- Other items
- Doorbell
- Garage Door Opener
Not covered:
- Pools and hot tubs (unless you add protection onto your plan)
- Filters
- Vents
- Baseboard casing
- Existing or preinstalled systems and appliances that are not maintained properly.
Who would these plans not be worth it for?
| Equipment breakdown Coverage (EBC) | Home Warranty |
| Buying a new houses
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How much do these two coverages cost monthly/yearly?
| Equipment breakdown Coverage (EBC) | Home Warranty |
| As little as $2 per month in the U.S., and ranging from $25-$50 annually. | In most states, people have to pay a monthly or annual premium. They typically start at $25 per month, and range from $300-$600 annually for $50,000- $100,000 of coverage. |
If my appliances/home systems break down? What should I do?
| Equipment breakdown Coverage (EBC) | Home Warranty |
1. Call your insurance company to initiate the claim. 2.Call your trusted repair vendor to repair your equipment or systems. All replacements will be energy-rated appliances. 3. Your insurance company will reimburse the bill you send into them. | 1. File a claim, or you call the toll free number your warranty company offers. 2. The warranty company will send a local technician that works under their network to your house, and the technician will check the systems or appliance. You will pay them a fee from between $60-$120. 3. If your claim is approved, they will pay to fix or replace the appliance. |
What is the contract like?
| Equipment breakdown Coverage (EBC) | Home Warranty |
| You can add and remove this coverage whenever you want from your policy. | It is typically a year to year standalone service contract that you cannot get out until the term is up. |
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