Machinery Breakdown coverages more than it implies. In addition to covering the mechanical failure of production machinery or equipment, Machinery Breakdown also applies to non-commercial items that impact an individual’s quality of life, such as heaters, air conditioners, electrical system wiring and refrigeration equipment. In the event of a breakdown of these systems or damage to them because of an electrical surge, machinery breakdown insurance will cover the costs to replace the damaged property. Machinery Breakdown coverage is also necessary to trigger lost rental income in the event that damage to any of these systems creates unsafe living conditions for tenants.