Does Home Insurance Cover Power Surges?

Summary: Different homeowners insurance policies have different coverages for power surge damage. You need to double-check your policy to understand whether or not you are covered. There are additional ways to protect your home and devices, including home warranties, equipment breakdown coverage, and surge protectors. Additionally, because Texas is one of the most vulnerable states to power surge damage, it’s important to shop and compare carriers who offer protection at the lowest possible price. Estimated Read Time: 6 mins

Table of Contents:

1. What Are Power Surges?
2. Who Pays for Power Surge Damage?
3. How to File a Homeowners Insurance Power Surge Claim
4. Preventing Power Surge Damage to Your Home
5. Does Renters Insurance Cover Power Surges?
6. Get Quotes for Homeowners Insurance Covering Power Surges in Texas

For many Texans, your homeowners insurance does cover power surge damage, however, it depends on the cause.

You can be reimbursed if lightning hits your home causing a power surge, however, if you neglect your home and a surge is caused by exposed wiring, don’t expect coverage.

Everyone has different home insurance and it’s important to understand your individual coverage, as protection from these perils differs by carrier and policy.

Many homeowners can also benefit from equipment breakdown coverage, an affordable, extra layer of protection for appliances and electronics.

There are also home warranties available.

To learn more about power surges and homeowners insurance, we’re breaking down everything you need to know below.

What Are Power Surges?

Power surges occur when there is either a disruption or a short, sudden spike in your home’s electrical grid.

These events cause an overload to your home’s electrical system and can cause damage to appliances and devices that are plugged in at the time.

A power surge doesn’t take much time, they occur in a millionth of a second, yet the damage can be devastating.

Primarily, power surges happen for one of two reasons:

• Lightning strikes hitting your home or a utility line connected to your home.
• An event causes switching surges due to a change in your home’s electrical load. This can occur within your home or as a result of your electric provider.

Types of Damage From a Power Surge in House

Your home may face damage to many different appliances and devices during a power surge. For example:

• Blow dryers
• Chargers
• Computers
• Dishwashers
• Fire and smoke damage to your home
• Light fixtures
• Personal electronics
• Televisions, video game consoles, and entertainment systems
• Washers and dryers
• Your HVAC system
• Your home’s internal wiring

Who Pays for Power Surge Damage?

Home insurance does cover power surge damage but there are instances in which homeowners will have to pay out of their own pocket.

Here’s when your insurance policy will cover you and when you’ll need to fund the repairs on your own:

Your Insurance Company

Whether your homeowners policy covers power surge damage depends on the cause but if you’re dealing with damage from lightning strikes or artificially generated surges, you may be covered by your policy.

Damage that was caused as a result of a power surge, such as a fire or explosion, may also be covered, along with short circuit damage.

If the artificially generated surge is covered, you still may have to pay for many parts within your home that make your electrical system work.

Furthermore, major appliances may not be covered without additional coverage.

Out of Pocket

Homeowners insurance does not always cover power surge damage. Here are a few examples of damage you may not be covered for:

• The power surge happened because of negligence
• Your home was vacant for over 60 days
• The power surge was due to maintenance issues
• The surge was caused by electrical work away from your home, like repairs to the neighborhood’s electrical system
• Also, some insurance companies won’t cover damage to parts like tubes and transistors in electronics and appliances.

In these events, you’ll need to pay for the damage on your own or through other means, such as a home warranty.

How to File a Homeowners Insurance Power Surge Claim

If you need to file a homeowners insurance claim due to a power surge, you’re going to do so just as you would any other.

Depending on your carrier, simply contact your insurance agent or file a claim online and follow the process.

You’re going to need to document your loss and provide your carrier with the information they request involving the loss, and many insurers will require an adjuster to inspect the damage.

For any claim, but particularly when dealing with the nature of power surge damage, maintaining a detailed home inventory is going to help you with the following:

• Deciding if you have a claim worth filing because you need to meet your deductible.
• Understand whether or not you have enough coverage for your claim.
• Provide your insurance company with a detailed, accurate list of what is affected by the damage and that your personal items were indeed covered.

Preventing Power Surge Damage to Your Home

Texas ranks 28th in the country for power grid reliability and has led the nation since 2000, in power outages.

Protecting your home is an essential task for any homeowner.

Even if your home insurance policy covers power surge damage, you’ll want to do everything you can to prevent it in the first place.

Here are some tips to help you limit potential damage:

Surge Protectors for Your Home’s Devices

Purchasing surge protectors for the devices around your home is a no-brainer, affordable way to prevent appliances and devices from facing major damage.

Whether it’s storming outside or just a random spike, you never can tell when your TV, blender, coffee maker, computer, etc., may face a threat.

Surge protectors work best when you connect them to a properly grounded AC outlet and aren’t overloaded by devices.

Install a Whole Home Surge Protector

Similar to individual surge protectors for your devices, whole home options protect not only your appliances and electronics but your home’s system as well.

While protecting your devices is important, a whole home surge protector keeps your home’s electrical system intact.

Repairing your electrical panel can cost hundreds of dollars, however, you’ll need to start thinking in thousands of dollars if you have to rewire your home.

A whole home surge protector is a great defense against such damage.

Furthermore, a home electrical inspection every five to ten years is recommended by experts.

Unplug Devices During Storms and Limit Outlet Overload

Managing your devices and appliances is a great way to limit unnecessary damage.

If you know there is a storm coming, unplugging can help you prevent damage.

You also want to avoid plugging too many devices into one outlet or overloading your system in any way.

Add Equipment Breakdown Coverage

In addition to your standard home insurance policy, you can add an insurance rider to provide additional coverage.

Specifically, you can protect against power surges and electrical shorts using equipment breakdown coverage.

Everything from your electronics to your home’s security features to your appliances and even the electrical parts of your HVAC can be covered.

Comparing coverages and talking to your insurance agent can help you determine affordable coverage options that best suit your home’s needs.

Does Renters Insurance Cover Power Surges?

Just like a home insurance policy, whether or not you’re covered for power surges will vary by carrier and policy.

Most renters insurance policies cover damage due to lightning but artificial current damage is not.

Contacting your agent is the best way to understand whether or not you’re covered for power surge damage.

As far as your home, Texas law requires landlords to repair anything that is affecting the health/safety of tenants.

Therefore, power surge damage will fall under their responsibility and landlord insurance policy.

Get Quotes for Homeowners Insurance Covering Power Surges in Texas

Far and wide the Lone Star State is vulnerable to power surge damage and homeowners need to do all that they can to avoid unnecessary costs.

Freedom Insurance Group works with 25+ top-rated insurance companies in Texas to provide clients with personalized coverage at the lowest price available.

Shop and compare homeowners insurance that covers power surge damage to save, on average, 40% on premiums.

Ask an agent today or get a free, no-obligation home insurance quote online.

Sources:

SURGES HAPPEN!, NIST. Accessed June 2024. https://www.nist.gov/system/files/documents/pml/div684/Surges_happen.pdf

Power Grid Reliability, U.S. News. Accessed June 2024. https://www.usnews.com/news/best-states/rankings/infrastructure/energy/power-grid-reliability

Landlord/Tenant Law, Texas State Law Library. Accessed June 2024. https://guides.sll.texas.gov/landlord-tenant-law/repairs