Home Insurance and Power Surges – What You Should Know

Written By Charlotte Insurance on December 7, 2021. It has 0 comments.

lightning hitting a home causing a power surge that's covered by home insurance

We’ve all been there. The storm outside gets worse, with lightning and thunder crashing all around you. You fear it might hit your home or cause a serious power surge. Oftentimes you get lucky and the storm passes without incident.

But what happens if there’s a sudden power surge and your computer, appliances, or smart home devices get damaged? Will your homeowners insurance cover the costs? Here’s what you need to know.

What is a Power Surge?

A power surge is caused by a sudden spike in electricity. This spike can cause lights to flicker, the power to go out, and in some cases, damage to electronic equipment.

Power surges are caused in two main ways:

  1. Lightning strikes to your home that send a sudden surge of power through your electrical wiring
  2. Sudden changes in electrical loads within your home or by the power company known as switching surges

What Your Homeowners Insurance Covers

For the most part, standard homeowners insurance will cover the replacement of personal property damaged by power surges under your personal property coverage – up to your policy limits. This typically includes electronics and appliances.

Most homeowners insurance policies cover damage to your home by lightning strikes.

Many policies, but not all, will cover sudden, accidental damage from man-made electricity. Not all policies cover tubes, transistors, and other electrical components, however. This could leave you with a denied claim or less money to replace what was damaged. It’s important to understand your specific insurance coverage.

Because there are limitations to what can be covered and how much coverage you have under your policy, you can’t always count on your homeowners insurance to cover a power surge.

Consider Equipment Breakdown Coverage

Equipment breakdown coverage can be added to your homeowners policy to offer extra protection. It offers protection against mechanical, electrical, or pressure systems so you’re covered from more than just a power surge. Plus it covers more than just electronics and appliances including home systems and smart home devices.

You can have a lower deductible than your general homeowners policy as well. You also have no per-item limits like you do in your personal property coverage so the coverage is better with less out-of-pocket costs than your home insurance.

How to Prevent Power Surge Damage

Even with the best insurance coverage you can afford, no one wants damage from a power surge. Reduce insurance claims and damaged electronics with these tips:

  • Unplug electronic devices during storms
  • Unplug electronic devices and appliances when you’re not using them
  • Install and use surge protectors, especially with your expensive electronics
  • Upgrade your old wiring, especially if you’re dealing with a lot of circuits being tripped or flickering lights during storms

Curious about what your homeowners policy covers? Want to find out about equipment breakdown coverage? Contact Charlotte Insurance today!

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