Making an Insurance Claim for Electrical Damage

Your home’s electrical wiring is a complex system carefully built to effortlessly power every light, outlet, and appliance with the flick of a switch. Because this system goes largely unseen, you might not notice electrical mishaps until they become serious problems — and what happens then? 

Homeowner’s insurance typically covers electrical damage, meaning you won’t always have to foot the bill after an accident. However, this coverage has limits.

Knowing how far your protection extends can help you make a better preparedness plan and avoid further damage in the future. Here’s the electrical damage coverage you can expect from a typical homeowner’s insurance policy.

Homeowner’s Insurance and Electrical Damage

A standard homeowner’s insurance policy includes several types of coverage that can protect the policyholder from electrical damage, including:

• Dwelling coverage: Covers the physical structure of your home and any permanently attached fixtures, including cabinetry and built-in appliances
• Other structures coverage: Protects structures on your property that aren’t attached to the house
• Personal property coverage: Covers damaged or destroyed belongings
• Liability coverage: Offers protection when a non-member of your household is injured
• Loss of use coverage: Covers additional living expenses in the event your home is rendered uninhabitable

If your electrical damage is protected by the coverage listed above, there’s a good chance you’ll be reimbursed for any necessary repairs or replacements. The amount of reimbursement you’re eligible for will vary depending on the limits dictated in your policy agreement. Upon approving a claim, your insurer will pay the specified claim amount minus your deductible.

Electrical Damage: What’s Covered 

Homeowner’s insurance policies will cover a specific range of damage. To find out how far your coverage extends, it’s a good idea to check the fine print. To give you a sense of what’s usually covered, here are some types of commonly included electrical damage:

While it’s generally safe to assume that the items above are protected, it’s important to note that even the most commonly covered damage has some risk of being denied. Insurers will often reject a claim if they have reason to assume the damage was caused by the homeowner’s failure to keep up with regular home maintenance. For this reason, it’s important to stay up-to-date on repairs. 

What Homeowner’s Insurance Doesn’t Cover 

Despite the extensive coverage offered by homeowner’s insurance, some events remain unprotected. Knowing what your insurer won’t cover is as valuable as knowing what they will, as you can alter your preparedness plan accordingly. Some uncovered damage includes:

• Outdated wiring. If your home was built before 1990, it might contain an outdated wiring system. Wiring made from aluminum, rubberized cloth, or knobs and tubes have been popular choices in decades past, though it’s more susceptible to fraying, brittleness, and electrical fires. Unlike modern wiring, it poses a high risk to homeowners, and any accidents caused by outdated wiring are usually not covered by insurance providers. Occasionally, a provider will agree to cover old wiring, though this protection often comes with an extremely high premium.
• Maintenance-related damage. Electrical problems that can generally be prevented with routine maintenance may be attributed to neglect if your insurer finds a failure to upkeep.
• Some power surges. Electrical damage caused by a power surge is sometimes covered, sometimes not, depending on the surge’s source. For example, if the surge was caused by electrical work conducted outside of your home, such as a company making repairs to the neighborhood’s system, any resulting problems likely will not be covered.
• Flood damage. Most home insurance policies do not include floods on their list of covered perils. If your electrical system is damaged by a flood, it probably won’t be covered. However, adding supplemental flood insurance to your policy can ensure you’re protected in the event of a flood.

How to File an Electrical Damage Claim 

Navigating the insurance claims process is easier when you know what to expect. If you’re thinking of submitting a claim for electrical damage, here’s what you should do:

• Contact your insurance provider. Alert your provider of the damage right away. Usually, this can be done online or over the phone.
• Document the damage. Take plenty of photos and videos of the damage to submit as proof of your claim.
• Make urgent repairs. Because electrical work can be extremely dangerous to the unskilled, it’s best to avoid making any repairs yourself. For urgent issues, you can alert your insurance agent of your intent to consult a professional right away — just make sure you save the receipts.
• Meet with an adjuster. Your provider will send an adjuster to assess the electrical damage in person. It’s a good idea to be present at this meeting in case you need to explain the details of the situation.
• Await your reimbursement. The adjuster’s assessment will influence how the insurer proceeds with your claim. If it’s denied, you may be able to request a meeting with a new adjuster for a reassessment.

Not sure if your electrical damage warrants a claim? If the issue is minor, paying a contractor from your own pocket may be a good idea. Submitting too many claims in one year can raise your premium and cause difficulties if you decide to extend your coverage. For minimal damage, footing the bill may save you money in the long run.

Preventing Electrical Damage at Home 

Insurance coverage can do wonders for your peace of mind, but preventing problems from happening in the first place lowers your risk of needing it. Here’s what you can do at home to avoid incurring electrical damage:

• Update your wiring system. Old wiring is a serious safety hazard. Updating it now can save you from costly repairs in the future.
• Don’t skip inspections. Having your system inspected regularly may help you catch issues before they do any damage.
• Unplug appliances. Keeping appliances unplugged when they aren’t in use can minimize damage in the event of a power surge or lightning strike.
• Install surge protectors. These can protect your home from power surges and should be updated every few years.

Being Prepared for Electrical Damage

Knowing how your insurance protects you makes it easier to overcome electrical damage. Supplementing your coverage and staying up to date with electrical maintenance means you’re likely to bounce back quickly after an accident. By taking steps to prevent further damage, you can lower your risk of problems in the future.

The more you know about insurance, the better equipped you are to take charge of your coverage. Visit ClaimGuide.org today to learn more.

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Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.