Equipment breakdown coverage, defined

Standard property policies exclude mechanical failure, electrical arcing and pressure system explosion; this form, once called boiler and machinery, puts them back. It pays to repair or replace the failed item, and can extend to spoiled stock, lost income during the outage and expediting costs. The failure must be sudden and accidental; wear, corrosion and gradual deterioration are excluded, and that distinction is the usual point of dispute. It is inexpensive relative to what it covers and is standard on business owners policies. A home version is available by endorsement for furnaces, air conditioners and appliances. Warranties and service contracts overlap but rarely pay for the consequences of the failure.