Common use of Equipment Breakdown Clause in Contracts

Equipment Breakdown. a. Equipment breakdown means a sudden and accidental: 1) mechanical breakdown; 2) electrical breakdown; or 3) bursting, cracking or splitting of covered home equipment that results in direct physical damage and requires repair or replacement of all or part of the damaged covered home equipment. b. None of the following is an 1) rust, corrosion (including pinhole leaks), erosion, deterioration or gradual loss of efficiency or functionality of covered home equipment; 2) leakage or seepage at or from any connection, valve, fitting, shaft or seal; 3) complete or partial interruption of electrical power, fuel or water supply, whether deliberate or accidental; 4) any condition which can be corrected by resetting, recalibrating, or by the performance of maintenance; or 5) cosmetic or other damage that does not impair functionality.