Appliances and gadgets damaged by a power surge are typically covered by a homeowner’s insurance policy, particularly for personal property coverage. Nevertheless, how precisely the surge occurred will ultimately determine what happens.
That’s why it’s crucial to understand how the power surge started in the first place so you can take precautions to avoid it. There are numerous causes and methods for power surges to occur.
A power surge could be caused, for instance, if lightning strikes a house or even a nearby telephone pole, if a house’s electrical wiring is outdated, or if your utility company is performing repairs in the area.
Any electrical device plugged into your power outlets, including your television and hair dryer, is susceptible to harm or destruction from power surges, regardless of what generated them.
But does your homeowner’s insurance include coverage for losses like a burnt TV or laptop? Because damage from power surges brought on by exposed wiring or overloaded circuits is rarely covered by insurance.
We’ll go over the specifics of your insurance coverage for power surges. If you’re searching for surge protection insurance, you might want to take a look at the FirstEnergy surge protection plan, which offers coverage for extremely delicate electronics.
What is a Power Surge?
A power surge occurs when there is a large volume of electricity rushing into your power outlets, just as the name suggests. It’s an unusual increase in voltage that exceeds the typical flow of power in one’s home’s electrical system.
Home appliances and devices plugged into the walls during power surges are susceptible to damage and destruction, and they can even harm your power outlets or start electrical fires.
Additionally, power surges are caused by switching surges, which can come from the electrical grid of the home or simply from outside forces that damage the electrical connections, such as downed power lines or lightning.
Switching surges can result in power surges in the following ways:
- Overloaded outlets
- Power-hungry equipment
- Damaged wiring
- Power outages
Power Surges and Homeowner’s Insurance
When exactly does a power surge fall under the purview of your homeowner’s insurance? As previously said, the precise reason for the power surge will determine whether your insurance coverage does, in fact, cover damage from it.
When lightning strikes or unexpected, unavoidable damages occur resulting from artificially created electrical currents, they are usually covered under a typical homeowner’s insurance policy.
For instance, if lightning struck your home and the resulting power surge destroyed your computer and TV, it’s possible that your homeowners’ insurance will contribute to the cost of replacing your damaged devices, subject to the limitations of your personal property coverage.
If your electrical company accidentally triggered a power surge while performing maintenance on your equipment, which sadly caused damage to your devices, that might also be regarded as an artificially generated electrical current, which is typically covered.
However, keep in mind that some homeowners’ insurance policies don’t cover the loss of transistors, tubes, and other components that enable your electronics to function. As a result, home appliances like stoves and refrigerators are likely not covered, even if the damage was brought on by an artificially generated current.
These may also be covered by your homeowner’s insurance policy:
- Damage from short circuits
- Fire damage brought on by a power surge
Whether you have an actual cash value or replacement cost coverage, the amount of the refund will vary if you are in fact covered. If your insurance covers power surge damages and it is a replacement cost policy, your insurer is required to pay you for brand-new products up to the policy’s limit.
However, if you are qualified for actual cash value coverage, you will only be compensated for the depreciated worth of your personal property.
When Do Damages from Power Surges Not Fall Under the Homeowner’s Policy?
Naturally, there are situations in which your insurance provider can decline to pay for power surge damage. Here are a few examples:
- More than 60 days have passed since no one has lived in your home.
- A power surge brought on by your own carelessness in general.
- A power surge happened as a result of some maintenance problems.
As was previously indicated, some insurance companies may flat-out decline to pay for electrical damage that was intentionally caused. That is why you should always ask all sorts of questions when signing up for a homeowner insurance policy. Watch video how to move your kitchen appliances.
All in All
As a homeowner, there are various preventative measures you may take to avoid power surges or the harm they might bring. Installing surge protectors is the most frequent solution. Also, if something appears off or there are too many surges, get an electrician to check your wiring.
All things considered, we hope you now have a clearer idea of the kinds of power surge damages that are protected by your homeowner’s insurance policy.
