How to Claim Home Insurance for Electrical Fire Damage: An Empowering Guide
Key Facts
- While there are exceptions, electrical fires are covered by most standard homeowners insurance policies.
- Electrical fires can be caused by anything that uses electricity if it’s damaged or malfunctions.
- If your home has older wiring, you may not be covered by your homeowners insurance policy if an electrical fire occurs.
- You should call 911 anytime you have an electrical fire. Even if you extinguish the visible flames, more flames may be hidden behind the walls.
- If you do electrical work yourself or your home is left vacant for longer than the specified length of time in your insurance contract, your claim might be denied.
Some of your home’s biggest fire risks are sitting on your countertop or snaking below your carpets. Electricity flowing through your home could arc and spark a massive fire that could take your home to the ground in minutes.
Between 2013 and 2022, fires due to electrical malfunctions increased by about 6%, resulting in nearly $1.5 billion in losses.
Thankfully, fires are covered by most standard homeowners insurance policies.[2] Exceptions exist, but most people who endure an electrical fire can use their policies to repair and rebuild what’s been damaged.
What Is an Electrical Fire?
Electrical fires are caused by a malfunctioning, damaged, or overheated electrical component. Plenty of issues can cause these types of fires.
Some electrical fires are caused when too many lights or appliances are attached to the electrical system.[3] The heat of all the current melts and ignites wire insulation, resulting in a massive fire.
Electrical fires can also be sparked by malfunctioning equipment, old wiring, improper use of extension cords, and more. Essentially, anything that uses electricity could cause a fire at some point if it’s damaged or malfunctions.
Common warning signs of electrical fire include:[4]
- Flickering lights
- Hot light switches
- Acrid smells
- Discolored cords or outlets
- Getting shocked when touching a switch or outlet
Without quick action, these subtle signs can become big fires that put your home and safety at risk.
What to Do When a Fire Breaks Out
Always put your safety first. While it’s possible to put out some small electrical fires, don’t take a chance. Let the experts at the fire department help. Get your family and pets out safely and call 911.
If it’s safe to put the fire out yourself, follow these steps:[5]
- Shut off the current: Unplug any malfunctioning appliance if you can, or turn off the power at the circuit breaker
- Smother small fires: Use sodium bicarbonate to extinguish tiny flames. Heavy blankets or clothing may also work.
- Try a fire extinguisher: If your device is approved for Class C fires, spray the contents on the fire. The label might also say something such as “ABC,” indicating that it can be used for several types of fires.
Even if you put out the flames you can see, others might exist behind the walls. Call 911 and tell the operator what happened. Wait outside for help to arrive.
Electrical Fires and Homeowners Insurance Coverage
While most types of electrical fires are covered by homeowners insurance, exceptions exist. It’s always wise to read your policy carefully and look for written notes about what your plan will and won’t cover. Keep in mind that anything that’s ultimately caused by negligence won’t be covered.
This chart can help you understand how common electrical fires are handled:
Typically Covered | Typically Denied | It Depends | |
---|---|---|---|
The fire is sudden and accidental | X | ||
Overloaded circuits caused the fire | X | ||
An appliance malfunctions and causes a fire | X | ||
The fire is caused by DIY electrical work | X | ||
The fire started when your home was vacant for 30 days or more | X | ||
The fire was caused by old wiring | X | ||
The fire was caused by negligence | X |
What Types of Fires Are Covered?
A typical electrical fire is covered by a standard homeowners insurance policy. If the fire is sudden and accidental, your policy should help you cover the cost to repair the damage and replace what you lost.
An electrical fire can be caused by:
- Overloaded circuits
- Malfunctioning appliances
- Faulty wiring
What Sorts of Fires Aren’t Covered?
Some types of electrical fires cause complicated claims that can result in denials. For example, fires caused by DIY electrical work or that begin in a home left vacant for a long time could result in a denied claim. Lisa Koosis, a former claims specialist, says, “When you’re having electrical work done, make sure the contractor is licensed and insured and keep records of the work completed. If a fire occurs, this can make the difference between an approved claim and a denial.”
What Types of Fires Fall Into Special Categories?
Some electrical fires are caused by knob-and-tube wiring. Very old homes may have this type of wiring throughout, or it might only appear in some parts of the house. These older wires are sometimes covered in flammable cloth that can spark when the circuits carry a heavy load.
If you have an older home, your policy might include coverage for this type of wiring. However, some policies specifically exclude this problem from coverage, or they may have higher premiums.
Documenting Electrical Fire Damage: What to Do
After the flames are out, it’s time to work with your insurance company and file a claim for reimbursement. Documentation starts the process.
Take photos and videos of anything that was damaged by the flames or the products used to put them out. The more detail you can provide, the better.
Don’t forget to document damage in spaces you can’t see. For example, a family in New York had an electrical fire that spread into the spaces between the second floor and the attic.[6] Documenting that damage might mean climbing into those spaces for photos and videos.
A family in North Carolina had a similar electrical fire.[7] The flames went into the wall and up to the attic. Documenting this damage could mean taking photos and videos of the outside of the home and in the crawl space and attic.
Lisa Koosis, a former claims specialist, warns, “While it might be tempting to climb into precarious spaces to get documentation of damage, always put safety first. Fires can cause structural damage that renders a building unsafe for occupancy, so some documentation is best left for the pros.”
How to File a Claim for an Electrical Fire
Start any claims process with research. Every time you file a claim, your premiums could go up — along with your risk of nonrenewal of coverage.[8] Ensure the damage is significant enough to merit the risks. Repairs due to small fires might be best handled without involving your insurance.
To file your claim, follow these steps:
- Contact your insurance agent.
- Fill out any required paperwork.
- Provide all the photos and videos you took of the damage in your home.
- Allow an adjuster to visit the site in person. Be present for the inspection.
- Negotiate for the right settlement.
To learn more about how the claims process works, read our detailed guide to homeowners claims.
You don’t have to accept the first settlement amount you’re offered. If the proposed sum seems unfair or inadequate, speak up. Be prepared with evidence to back up your claim. If you still can’t come to an agreement, you may need to hire an attorney.
If you feel your claim was wrongly denied, you can appeal it with additional documentation and, potentially, an assessment from an independent adjuster.
The Repairs Process: How Does It Work?
After your claim is approved, you’ll get a check from your insurance company with funds for repair or replacement.[9] You’re responsible for finding the right expert, supervising the work, and paying that person.
Work closely with your contractor during the repair process. Watch over the work carefully and ensure everything is done to your standards.
When the repair is complete, your contractor should give you documents that detail what was done and when. Your insurance company may need this paperwork to renew your policy.
How to Reduce Your Fire Risks
Never underestimate the power of electricity. Taking a few practical steps can reduce your risk of enduring an electrical fire at some point.
Follow these tips to reduce your risk of electrical fires:[3]
- Don’t use electrical cords that aren’t marked by Underwriters Laboratories (UL) or Intertek (ETL).
- Keep cords in the open, not beneath furniture or rugs.
- Don’t overload extension cords.
- Touch your outlets, switches, and cords and unplug them if they’re hot.
If you’re constantly using extension cords, talk with an electrician. Installing new outlets could mean reducing your risk of fires significantly.
Consider asking an electrician to review your electrical system once every 10 years.[10] Ask about reasonable upgrades that could keep your home safer from fires in the future. Keep evidence of these upgrades in case your insurance company asks for proof.
Recovery From an Electrical Fire
While it’s essential to do your part to keep fire risks within your home low, your homeowners insurance policy should help you if you have an electrical fire. Document the damage, work closely with your insurance company, and hire a reputable person to help fix what’s been lost.
Sources
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Home Electrical Fires. (January 2022). National Fire Protection Association.
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Homeowners Insurance Basics. Insurance Information Institute.
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Electrical Fire Safety. City of Charleston, South Carolina.
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Electrical Fire Prevention Tips. Snohomish Public Utilities Department.
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How to Put Out an Electrical Fire in Five Steps. (January 2018). Fire Rescue 1.
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New Year’s Even Fire Sparked by Electrical Issue Displaces Three in Syracuse. (December 2023). CNY Central.
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Electrical Fire Leaves 11 People Without Home in Fayetteville. (January 2024). WRAL News.
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A Consumer’s Guide to Home Insurance. (2010). National Association of Insurance Commissioners.
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Filing a Homeowner’s Insurance Claim: Process and Claim Responsibilities. (September 2023). Farm Bureau Insurance Tennessee.
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Electrical Fire Safety. Commonwealth of Massachusetts.