Endorsements & Optional CoveragesQuestion 446 of 474
Equipment breakdown coverage added to a homeowners policy is what responds when:
a.A kitchen fire destroys the furnace and ducts
b.A falling tree crushes the outdoor condenser
c.The central air unit burns out its motor
d.The new water heater is stolen from a garage
Explanation
The unendorsed policy excludes mechanical and electrical breakdown, so a compressor or motor that simply fails is the insured's expense until equipment breakdown coverage is added; the endorsement also covers the resulting damage to other property and often spoiled food. The tree, the fire and the theft are all covered perils on the underlying policy already, so none of them needs this endorsement.
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