Does Homeowners Insurance Cover Generators?

Homeowners insurance provides financial protection for your dwelling and belongings against various unforeseen events. With increasing instances of power disruptions, many homeowners are considering generators as a reliable backup power source. Understanding how your homeowners insurance policy interacts with a generator, both the unit itself and any damage it might cause, is important for securing your investment and maintaining peace of mind.

Coverage for the Generator Itself

The way a generator is covered under a homeowners insurance policy largely depends on its type and how it is installed. Permanently installed standby generators, which are connected directly to a home’s electrical system, are generally considered part of the dwelling. This means they are covered under the “dwelling” portion of your policy, or potentially under “other structures” coverage if housed in a detached shed or outbuilding.

Portable generators, which are not permanently affixed to the home, are typically categorized as personal property. This means they fall under the “personal property” section of your policy, which usually covers your belongings up to a certain percentage of your dwelling coverage, often ranging from 50% to 70%. Both standby and portable generators are typically covered for damage resulting from specified perils, such as fire, theft, vandalism, lightning strikes, or windstorms.

Coverage for Generator-Related Damages

Homeowners insurance policies may also extend to damages caused by the generator’s operation, provided the incident results from a covered peril. For instance, if a generator malfunctions and causes a fire that damages your home or its contents, the policy would likely cover the fire damage. Similarly, damages to appliances or electronics due to a power surge originating from a covered event, like a lightning strike, may be covered under personal property or dwelling coverage.

Some policies may also address situations involving carbon monoxide exposure if it leads to covered damage or makes the dwelling uninhabitable.

Factors Affecting Coverage and Common Exclusions

Several factors influence whether a generator or generator-related damage is covered, and homeowners should be aware of common policy exclusions. Professional installation by a licensed electrician is generally expected for standby generators, as improper installation can lead to coverage denial. Insurers view portable and standby generators differently due to their varying risks and permanent attachment to the property.

Standard homeowners insurance policies typically exclude damage from wear and tear, meaning if a generator simply breaks down due to age or lack of maintenance, it is unlikely to be covered. Damage resulting from improper use or negligence, such as operating a portable generator indoors and causing carbon monoxide issues, may also be excluded. Furthermore, standard policies generally do not cover damage from floods or earthquakes, requiring separate policies for these perils. Using a generator for commercial purposes can also lead to coverage exclusions.

Liability Coverage for Generator Incidents

The personal liability portion of a homeowners insurance policy can offer protection if a generator incident causes harm to others or their property. For example, if an improperly vented generator causes carbon monoxide poisoning to a visitor, or if exhaust fumes damage a neighbor’s property, your liability coverage would generally apply. This coverage protects the homeowner against claims for bodily injury or property damage to third parties. It is important to operate generators safely and in designated areas, away from windows and doors, to prevent such incidents.