Boiler & Machinery Coverage
Definition:
Insurance that covers the sudden breakdown of mechanical or electrical equipment.
Explanation:
Also known as equipment breakdown coverage, it protects against damage caused by explosions, ruptures, or failures of boilers, machinery, and similar systems. This is often excluded from standard homeowners policies but can be added separately.
Example:
If a boiler explodes and damages part of your basement, boiler & machinery coverage may pay for repairs and replacement.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.