Equipment Breakdown (Boiler & Machinery)
What this clause says
This policy is endorsed to cover direct physical damage to covered equipment caused by mechanical breakdown, electrical arcing, or pressure-system failure, including damage to the equipment itself and resulting damage to other covered property.
What this means in plain English
Equipment breakdown, historically called boiler and machinery, covers sudden mechanical or electrical failure of building systems such as elevators, boilers, chillers, central HVAC, and large pumps. Standard property coverage excludes internal mechanical and electrical breakdown, so without this endorsement a failed elevator drive or a burned-out chiller is an out-of-pocket repair. It also typically covers the resulting damage, for example water damage from a failed pump.
What it means for an HOA board
Any community with shared building systems, elevators, central plant HVAC, a pool mechanical room, or a common water heater, needs this endorsement, and it is inexpensive relative to what it covers. It is frequently absent on garden-style associations that assume they have no boiler, overlooking that elevators, pumps, and central air-handling all qualify as covered equipment. Confirm the endorsement is present and that the equipment schedule matches the systems the community actually operates.
Program notes
Often included by endorsement at modest cost in the specialty community-association package. The gap is usually an oversight rather than a pricing decision.
How this evaluates
The Policy Checker applies these rules in order; the first match wins.
has equipment breakdown is set -> Compliant: Equipment breakdown coverage is in place for elevators, HVAC, and other building systems. has equipment breakdown is not set -> Borderline: No equipment breakdown coverage. Confirm whether the community operates elevators, central HVAC, or pumps that would need it.
See this in your policy
Check this clause against your master policy.
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