If your refrigerator stops cooling, your furnace quits in the middle of winter or your air conditioner dies during a heat wave, homeowners insurance usually will not pay to repair or replace it. Insurance covers damage from events like fire or certain kinds of water damage, not mechanical failure from age or normal use.

Some insurers offer an equipment breakdown endorsement that can cover certain systems and appliances, so ask whether that is available on your policy and what it includes. Another option many homeowners consider is a home warranty, which is a service contract rather than insurance. These plans typically cover repairs to major systems and appliances for a yearly fee plus a service charge per visit.

Home warranties vary a lot. Read what is excluded, whether there are caps on repair amounts, and how the company handles items it decides are too old or poorly maintained. Compare that with simply setting aside money in a dedicated repair fund. For an older home with aging equipment, the peace of mind may be worth it, but go in with clear expectations.