Does Homeowners Insurance Cover Power Surges? (2024)

FAQs

Can you claim power surge on insurance? ›

Homeowners insurance may cover damage to your home and belongings caused by a power surge, up to your policy's limits. Whether or not the damage is covered may vary based on what caused the surge.

Homeowners insurance will typically cover damage from power surges, but whether it covers loss of food in a refrigerator due to an outage depends on the policy. The type of coverage is usually spelled out in an “insured perils” provision in the policy or contract.

Electrical panels are typically covered by your homeowners policy if the damage is the result of a "sudden and accidental" loss caused by a peril, such as a fire or lightning. However, you typically won't be covered if the damage is the result of age or improper maintenance.

Power surge protection is often not covered under a manufacturer's warranty, which can be a major issue if you live in places that experience severe weather. If you're in the middle of a huge project and have a power surge, not only can your work be lost, but it can also damage your computer.

To verify surge damage, you can find an assessment partner to provide an onsite inspection of electronics for a cause of loss determination and repair vs. replacement recommendations.

Power surges from lightning strikes can destroy your electronics causing them to fail to power back on. This can be an expensive and annoying problem. For a business this can lead to data loss, or the need to replace costly equipment.

Power issues, surges especially, cause internal wire damage to your appliances, eventually causing some of them to stop working.

What is the difference between a power outage and a power surge? In simplest terms, a power outage is a loss of power while a power surge increases the voltage.

These damages typically involve various electronics critical to daily operations like computers, phones, phone lines, and printers. Without these tools, valuable time and stored data can be lost. Damage from electrical power surges is one of the leading causes of failure for equipment dependent on electricity.

Q: Does homeowners insurance cover circuit breakers? A: Homeowners insurance typically covers circuit breaker panels in cases of fire, flood, and other similar disasters. However, normal wear and tear or outdated panels are not covered.

Does Allstate homeowners insurance cover electrical problems? ›

Personal property coverage for electrical damage

If a power surge damages or destroys your electronics and appliances, personal property coverage in your homeowners insurance may help to protect you — up to the limits in your policy.

Service line coverage, also known as buried utility lines coverage, is an endorsem*nt that can be added to many home insurance policies to cover the cost of repairing or replacing a broken utility line running into your home.

If a power surge flows all the way through an electrical system to a sensitive device, such as a smartphone, computer or television, the surge can damage the device, potentially beyond repair.

Top Causes of a Power Surge

Tripped Circuit Breakers – While these can protect your home, they can also become a risk if damaged during the process. Faulty Wiring – This is a leading cause of power surges, and the wires will need to be replaced. Consult with a professional electrician if you suspect faulty wiring.

The devices and appliances you want to make sure you plug in, are the expensive ones with microprocessors into your surge protector. This includes TVs, refrigerators, dishwashers, ranges, AC units, PCs, laptops, game systems, and phones.

Standard insurance policies do not cover flooding, including storm surge flooding. Purchase or renew a flood insurance policy. Flood insurance is available for homeowners, renters, and business owners through the National Flood Insurance Program (www.floodsmart.gov).

Lightning strikes can cause fires inside or outside your home, ruin expensive appliances and electronics, damage wiring in the walls, and potentially shock and injure you or someone in your household. The good news is lightning is covered by almost all homeowners insurance policies.

Insurance carriers generally cover a power outage due to events within your property. The source of the power outage plays a crucial role in determining coverage eligibility. If an outage happens because of a tree falling on your power lines during a storm, it is more likely to be covered by your home insurance policy.