Out-of-pocket repair costs for damage caused by common home appliances, furnaces, and HVAC systems can hurt your business. NREIG’s Equipment Breakdown offering helps protect investors like you by covering the physical and financial damage that can result from an accidental breakdown of equipment.  

What does Equipment Breakdown cover?

Our offering is among the broadest in the industry. We insure many types of equipment that most other companies exclude. The following exposures may exist at your property and are included under this coverage:  

  • HVAC systems   
  • Electrical panels & emergency generators    
  • Home security systems   
  • Sound systems   
  • Computer-controlled equipment   
  • Fans, motors, compressors, and pumps   

Coverages we offer under Equipment Breakdown include, but are not limited to: 

  • Property Damage 
  • Off-Premises Property Damage  
  • Business Income  
  • Extra Expense 
  • Data Restoration  
  • Mold 
  • Environmental, Safety, and Efficiency Improvements  

Examples of potential losses

Equipment Breakdown covers damages caused by power surges, electrical shorts, mechanical breakdowns, motor burnout, and more. Below are some common Equipment Breakdown losses that may be covered.    

  • Electrical arcing destroyed three main electrical panels and left the building without power. Temporary measures had to be taken to restore power to tenants.  
    • Costs to obtain and run backup generators would be an example of temporary measures that may be covered by Equipment Breakdown coverage.  
  • An apartment complex’s aluminum electrical supply burned out and severely damaged electrical wires and cables. Affected tenants had to be relocated as a result.
    • Equipment Breakdown may cover the equipment repair cost and the relocation costs.  
  • The motor in a building’s air conditioner burned out. Temperatures exceeding 90 degrees required four spot coolers to be rented and set up in tenant’s apartments. Overtime pay for maintenance staff was required to replace the motor.  
    • Equipment Breakdown may cover the rental cost of the spot coolers and extra expenses associated with keeping the building cool (overtime paid to staff).  
  • A power surge damaged electronics including the computer system, telephone system, hardwired smoke detectors, and security system.  
    • Equipment Breakdown may cover the cost to restore these systems back to an operational state.  
  • Sediment in a boiler caused a low water condition that triggered severe over-firing and resulted in the broiler shutting down. A rental unit was necessary until the damaged boiler could be replaced.  
    • Equipment Breakdown may cover the cost of the replacement boiler and the cost of the required rental unit. 
  • A section of a boiler and a steam pipe fitting cracked and had to be replaced. 
    • Equipment Breakdown may cover the cost of replacement parts and required labor.  

Equipment Breakdown can be added to your locations at any time by endorsement. Contact your Client Service Advisor if you have questions.   

*Equipment Breakdown coverage is NOT a home warranty and does NOT extend to wear and tear or deferred maintenance.* 

*Equipment Breakdown coverage is not available for new construction locations.*