Does Homeowners Insurance Cover Power Surges (2024)

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

• Overloaded outlets
• Damaged wiring
• High powered devices

• Power outages
• Lightening
• Downed power lines

• Electric company doing maintenance work
• Blown fuse on an appliance

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.

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.

Making a claim for damage caused by power surges is quite simple. These four steps are all that’s required:

1. 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.
2. 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.
3. 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.
4. 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.

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.