Can I Claim for Power Surge Damage on Insurance?

Power surges can damage electronics and appliances, creating unexpected financial burdens. Understanding whether such damage is covered by an insurance policy is a common concern. Claiming for power surge damage is often possible, depending on the specific conditions and coverages outlined in your policy.

Insurance Coverage for Power Surge Damage

Homeowners, renters, and condominium policies may cover power surge damage. A standard homeowners policy (HO-3) typically covers the dwelling and personal property. These policies often include coverage for “sudden and accidental discharge of electricity” or “artificially generated electrical current,” which applies to power surges. Damage to electrical appliances may be covered, provided the surge was not due to gradual wear.

Renters (HO-4) and condominium (HO-6) policies primarily cover personal property, as the dwelling structure is typically covered by the landlord’s or HOA’s master policy. Personal property coverage may extend to items damaged by power surges, especially if the surge originates from a covered peril like a lightning strike. Coverage varies, so review your specific policy language.

Distinctions exist between power surges caused by direct lightning strikes and those from the power grid or internal electrical issues. Direct lightning strike damage is generally covered by most standard homeowners policies for both structure and personal property. Surges from external sources, like utility issues or internal wiring problems, might have more limited coverage or require specific endorsements. Some policies may exclude damage to internal electronic components unless an endorsement is purchased.

For broader protection, consider adding an “equipment breakdown” endorsement. This endorsement provides coverage for mechanical or electrical breakdowns, including power surges, extending beyond typical standard policy perils. Such endorsements can cover items from major appliances to home entertainment systems. Review your policy’s coverage limits, deductibles, and any specific exclusions related to electrical damage.

Gathering Information and Documenting Damage

When power surge damage occurs, gather information and document the loss before contacting your insurer. Prioritize safety by ensuring no electrical hazards remain. After confirming safety, assess all damaged items.

Document damage with clear photographs and videos of affected personal property and any structural damage. Include close-up shots of specific damage, like burn marks or malfunctioning screens, for evidence. Do not discard damaged items until an insurance adjuster inspects them.

Create a comprehensive inventory of all damaged items. For each, include its make, model, serial number, approximate purchase date, and original cost. Gather any sales receipts, owner’s manuals, or appraisals to substantiate their value. This detailed list helps determine the scope of the loss.

Obtain repair or replacement estimates from qualified professionals for significant damaged items. These estimates provide an independent assessment of restoration or replacement costs. If the power surge event is known (e.g., date/time of a grid fluctuation or lightning strike), note these details. Retain any communication or incident reports from the power company.

Submitting Your Claim

After gathering all necessary information and documentation, submit your insurance claim. Contact your insurance company by phone, online portal, or mobile application. Prompt notification helps ensure the claims process begins without undue delay.

Once contacted, the insurer will guide you through the submission process, including providing your prepared documentation. Submit your detailed inventory of damaged items, along with supporting photographs, videos, and any repair or replacement estimates. The company will assign a unique claim number; record it for all future communications.

Following submission, an insurance adjuster will be assigned. Their role is to inspect the damage, assess the loss, and determine compensation payable under the policy. This may involve a physical visit to examine damaged items and verify details. Be present during the adjuster’s visit to point out all areas of concern.

The insurance company is generally required to acknowledge a claim within 15 days and accept or reject it within 15 business days of receiving all necessary information. If approved, payment is usually issued within five business days. Claims for extensive damage might involve multiple payments: an initial payment for estimated repairs and a subsequent payment after actual repairs are completed. Maintain a detailed log of all communications, including dates, times, and names.