What Homeowners or Renters Insurance Covers in Power Outages (2024)

FAQs

What Homeowners or Renters Insurance Covers in Power Outages? ›

Personal property coverage protects your personal belongings from damage caused by power outages. For example, if a lightning storm strikes your home, causing a power outage and physical damage to the building, making your home unlivable, your renters insurance may pay for alternative housing.

Power Failure Results in a Covered Peril

In the insurance world, these are called covered perils. So, if the power outage causes a peril from the chart above, like a fire that damages your belongings, your Goodcover renters insurance plan will likely kick in cover the damage.

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.

Electrical malfunctions are typically covered but not damage caused by intentional acts like vandalism. Ask your insurance agent for advice on what is covered and how much of the damages might be paid for under your homeowners policy for damages to your electrical appliances.

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy. All three of these events can easily damage your personal property, so you should buy additional coverage if you think you're at risk.

Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance. It typically does not cover earthquakes, floods, bedbugs, mold, or damage to the exterior of the building.

Renters insurance is an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property.

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.

Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.

Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.

Is power failure the same as outage? ›

A power outage (also called a powercut, a power out, a power failure, a power blackout, a power loss, or a blackout) is the loss of the electrical power network supply to an end user.

A power failure, also known as a power cut, power outage or blackout, is a short or long term loss of electric power to an area. It can affect a single house, a building or an entire city, depending on the degree of the damage or cause of the failure.

A power surge occurs when there is a sudden, significant increase in the voltage of electricity flowing through your circuits. In the United States, most electronics and appliances work on 120 volts.

Home insurance typically doesn't cover damage from floods, tsunamis, or earthquakes.

Items not covered with renters insurance include: Personal property loss that exceeds the coverage limits on your renters insurance policy. Liability situations that exceed the limits on your policy. Damages caused to the structure of the building you are renting (which is covered by your landlord's homeowners policy).

Homeowners insurance is for those who own their home or apartment, and it covers both their personal belongings and the structure of the home. Renters insurance is purchased by tenants, and it covers damage to or theft of their personal property, but not damage to the building itself.

Renters insurance also covers short-circuit damage caused by electrical appliances. Short-circuit accidents can result in electrical damage to your appliances and sometimes even lead to a fire. Depending on your coverage limits, your renters insurance could reimburse you for this peril.

It depends. If your computer is stolen from inside your rental apartment or it's damaged by a fire, your renters insurance may kick in to help pay for a repair or replacement. But if your laptop breaks due to an accident or normal wear and tear, your renters insurance likely won't cover the damage.

A standard renters insurance covers lost items, including jewelry, art, clothing and other valuables.

Renters insurance is designed to cover unexpected and sudden events that make your home uninhabitable. So if the power outage isn't due to a specific event causing damage to your specific rental unit or building, then it's likely that your policy won't cover the cost of a hotel stay.