Margaret Huntley Last Updated On: June 27, 2023
Home / Blog / Home Insurance / Does Homeowners Insurance Cover Power Surges?
What Are Power Surges?
A power surge is characterized by a sudden, short spike or interruption within a house’s electrical grid. Such events can overload and even damage anything that is plugged into the wall.
Some examples of the types of appliances and electronics damaged by power surges are:
- Washing machine
- Dryer
- Fridge
- Dishwasher
- AC Unit
- Home’s internal wiring
- Television
- Computer
- Charging cords
- Blow dryer
- Light fixtures
This list just skims the surface of what could be damaged by a power surge. Power surges can be caused by a number of different things, including:
- Overloaded outlets
- Damaged wiring
- High powered devices
- Power outages
- Lightening
- Downed power lines
- Electric company doing maintenance work
- Blown fuse on an appliance
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Is the Damage Caused by Power Surges Covered Under My Home Insurance?
The answer to this question depends on your policy and on the cause of the power surge.
Homeowner’s insurance extends to covered perils only. Two common covered perils that are also common causes of power surges are lightning and sudden accidental damage caused by artificially generated electrical currents.
Therefore, if your personal belongings are damaged in a power surge that occurred due to lightning then your insurance will cover that damage. But, if the power surge was caused by an overloaded circuit, then you will not receive coverage.
Some homeowner’s insurance policies have more than the standard covered perils. Consider scheduling a personal insurance review with your insurance agent to discuss the specifics of your policy.
Equipment Breakdown Coverage
Many insurance providers offer additional coverage for equipment breakdown, which extends to appliances, home systems, and smart home devices that may become damaged due to power surges or other factors.
This coverage comes with no per-item limit and a lower deductible. If you can afford it, it’s a great option for additional peace of mind.
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Submitting Claims for Power Surge Damage
Making a claim for damage caused by power surges is quite simple. These four steps are all that’s required:
- Assess the damage: When safe to do so, make a detailed list of every electronic or appliance that is damaged from the power surge. Record when the surge happened, the cause of the surge (write unknown if you are unsure), and any other important details.
- Consider the deductible: Recall the limits and deductible on your specific insurance policy. If the damage is less than the deductible, then you may not need to make a claim.
- File a claim: If you do need insurance coverage, simply contact your insurance provider and give them the details that you recorded. They will walk you through the process of making the claim.
- Receive reimbursem*nt: Then, all you have to do is sit back and wait for your cheque to arrive. Depending on your policy type, you may receive the replacement cost (full purchase price) or cash value (purchase price factoring in depreciation) for your damaged items.
Can You Prevent Power Surges?
Even if your insurance coverage is able to help you in the event of a power surge, they can often be a hassle to deal with. Here are some steps you can take to prevent power surges from happening in the first place:
- Unplug appliances and electronics when not in use
- Unplug appliances and electronics during a storm
- Use surge protectors
- Upgrade poor or faulty wiring within your home
At the end of the day, your home’s safety should be yours and your insurance provider’s top priority.
Power surges are just one of many things that can happen to your home unexpectedly. Being prepared can help ensure your home is not only protected from power surges as much as possible but help you deal with the aftermath of the unavoidable happens. Understanding what you’re covered for and how to prevent power surges from happening in the first place can help give you peace of mind about your home.
FAQs
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.
Who is responsible for a power surge? ›
Power surges can originate from the electric utility company during power grid switching. Another common cause of power surges, especially the most powerful ones, is lightning. Power surges can also originate inside a home when large appliances like air conditioners and refrigerator motors turn on and off.
Does home insurance cover electrical problems? ›
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.
Is power surge covered by warranty? ›
Damage from Power Surges
Also, home warranties generally don't cover your electric items, like computers or televisions, making them off-limits for repairs if you experience a power surge or power failure in your home.
How to confirm power surge? ›
The main signs of a power surge in a home include a tripped circuit breaker or safety switch, sudden resetting of devices, power loss of devices, or broken electronics. Take action and protect your home from future power surges. Surge protectors are one of the simplest ways to protect your home.
Is storm surge covered by homeowners insurance? ›
A standard homeowners, condo owners, or renters insurance policy does not cover damage from flooding from a storm surge. Only a flood insurance policy covers this.
How do you prove there was a power surge? ›
There are a few signs that may show your appliance or device experienced a power surge: The lights of digital devices and clocks will flash. Devices stop working or are switched off. A burnt, acidic acrid smell will emanate from the device.
How common are electrical surges? ›
Internal Power Surges
They may occur dozens of times every day. Most power surges are too small to be detected by the human senses. They pass through your home's wires, and no one's ever the wiser. Fortunately, modern electronics are designed to resist these kinds of minuscule spikes.
How can I fix a power surge? ›
There are three main things to do after a power surge: Reset, unplug, and repower all electronic devices. Do this before resetting your circuit breakers if a power outage has occured after the surge. Assess your home for any damages by inspecting your appliances, electronics, and power outlets.
What type of insurance will cover problems that happen to your house? ›
Dwelling coverage
Dwelling insurance is the keystone of your homeowners insurance policy. It pays to repair, replace, or rebuild your home's structure after a covered peril. This could include fire, theft, vandalism, or a weather event such as lightning, wind, or hail.
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.
Does homeowners insurance cover damage? ›
Most home insurance policies will only cover you for sudden events such as fire, floods or theft. They won't cover damage caused by wear and tear or that happens slowly over time. For example, damp, condensation or rust.
Will insurance cover power surges? ›
Homeowners insurance typically covers the cost to replace an electrical appliance or electronic device because of a power surge. A power surge is caused by something other than your normal electricity supply. Appliances covered under home insurance due to power surge usually include: Cameras.
How much does it cost to replace a surge protector? ›
The cost to purchase a whole-house surge protector ranges from $70 to $700, with the national average being around $300, according to Sanders. On top of this are installation costs, billed at a typical rate between $50 to $100 per hour (depending on the installer).
Why is my electricity surging? ›
Electrical Overload
This excess power, followed by a voltage spike, mainly occurs when you overuse extension cords or have too many appliances or electronic devices plugged into the same circuit. You will mostly see electrical overloads with space heaters, hair dryers, power tools, HVAC units, and large appliances.
Is power surge insurance worth it? ›
A single fire can be deadly and destroy your entire home, so whole house surge protection is worth it when you consider the potential harm a surge can do to life and property.
How much damage does a power surge do? ›
Far from harmless though, power surges can damage your electrical outlets, fry your appliances and electronics and start dangerous electrical fires. Being cognizant and proactive against the causes of power surges can potentially save your electronics and more importantly, your life.
Does insurance cover lightning surge? ›
Homeowners insurance and business insurance policies do generally cover lightning strikes, but there are exceptions to this general rule. Even if there is clear evidence of lightning-related damage to your home or business, an insurance company may try to avoid paying the settlement you deserve.
What does surge protection cover? ›
What is a Surge Protector? A surge protector, also known as a surge suppressor, is a device that is made to protect electronic equipment from unwanted power surges or "spikes." It takes only a tiny amount of voltage increase to damage most of today's sensitive electronics.
