Surge Protectors: Understanding Insurance When Power Surges Strike 

Power companies aim to supply 120 volts AC power through your electrical sockets. Triggers like lightning, malfunctioning appliances, and poles hit by cars can make the power jump to hundreds or thousands of volts.[1] These are power surges, and homeowners insurance doesn’t always cover them.

A standard homeowners insurance policy offers coverage for incidents that are sudden and unavoidable. Some types of surges fit into this category. Others, including surges from faulty wiring, do not. 

How Are Power Surges & Homeowners Insurance Connected?

Your home and possessions can be damaged in a power surge event. Your coverage will vary depending on the source of the excess voltage. This table makes the connection clear:

	Covered	Not Covered
Lightening	X
Power company problems	Sometimes	Sometimes
Unknown rodents chewing wires	X
Wiring problems		X
Overloaded circuits		X
High-powered devices		X

What Surges Are Typically Covered?

A standard homeowners insurance policy will protect you if your home or possessions are damaged by surges caused by lightning. The average homeowner can’t prevent these issues, and neglecting your home won’t cause them. 

If rodents get into your walls, chewing wiring and causing surges, your homeowners policy may help too. You must prove that you didn’t know about the critters and that they haven’t been in your home for very long. But when you do, the company might help. 

If the power company caused the surge, either because of a system breakdown or damage to the lines, some homeowners insurance policies will cover the damage. But a very limited policy may exclude this event.[2] You must read your plan carefully to ensure you’re protected. 

What Surges Aren’t Typically Covered? 

Experts say up to 80% of surges stem from problems within a home or business.[3] If you could have done something to prevent the problem, or your negligence directly caused it, your policy may not pay. 

Examples of non-covered surges include those caused by old wiring, overloaded circuits, and poorly installed equipment. Your homeowners insurance company expects you to handle these problems before they cause electrical issues within your home.

Other Options for Power Surge Reimbursement 

Some insurance companies offer products that protect your home from dangerous surges. An equipment breakdown coverage policy, for example, can defend delicate items (like computers) against surges—no matter how they start. 

If the electric company causes the surge, you can also ask the company to pay for damages. For example, one power company will accept responsibility for surges caused by personnel negligence.[4] If you can prove the company isn’t keeping the grid in good working order, you could get payouts for the damage you sustained. 

When to File a Power Surge Claim 

Your home or belongings have been damaged in a power surge event. Is it time to file a claim with your homeowners insurance company?

Ask yourself the following questions:

1. Will I pay more in a deductible than it would cost to replace what has been broken?
2. Does my policy cover this type of surge?
3. Can I prove that my negligence didn’t cause the surge?
4. Is the potential payout worth the higher premiums I might pay next year?
5. Have I filed a claim recently? 

If you choose to file a claim, make a list of everything that was damaged by the surge. Use photos and videos to document the losses. Contact your insurance agent and explain that you’d like to file a claim. You’ll meet with an adjuster who will examine the damage and offer a payout per your plan’s terms. 

5 Power Surge Prevention Tips

Your quick thinking and proactive care could keep you from sustaining heavy losses when the next surge strikes. Try the following ideas: 

Prevention could keep you from filing a power surge claim. In some cases, your preventative steps can save you money on premiums too. 

1. Unplug Sensitive Items 

Many of us leave delicate items like stereos, televisions, and computers plugged in around the clock. Doing so isn’t always wise.

Keeping these things disconnected from power when not in use can protect them from common surges. This simple step can also keep your overall electrical consumption down, as some devices keep drawing power even when they’re not in use.[5] 

2. Fix Faulty Wiring

Older homes often contain antique wires that are prone to arcing and fires. If you know your wiring is old, hire someone to replace it and bring your system into modern times. 

You’ll deal with less flickering and surges, and your risk of damage drops. Once your home is rewired, ask your insurance agent for a discount on your premiums. They’ll likely require proof of the work you performed.

3. Install a Home-Wide Surge Protector 

Electricians can install whole-home surge protectors that offer a clear defense against power surges.[6] They are hard-wired to your electrical box and protect your devices around the block. Once your new system is installed, tell your agent, submit proof (if needed), and ask for a discount for this investment in future claims.

4. Inspect Your Home Regularly

Don’t let critters, exposed wires, and other common hazards persist in your home. If they cause surges and you didn’t fix them, the insurance company could claim your negligence was to blame (and refuse to pay your claim). 

Make a point to check your property regularly, and inspect problems like flickering lights as soon as they happen. If you spot any issues, address them promptly.

Be Ready When Surges Strike

Read your homeowners insurance policy carefully and ensure you have enough protection for common surges and electrical problems. Ask your agent for a quote on added protection, and examine whether common surge-protection steps could lower your premiums. 

Walk through your home and create a detailed inventory of all of your electrical belongings, including serial numbers and prices paid. This list will be critical if a home-wide surge fries your electronics. You’ll know exactly what you had and whether it’s worthwhile to file a claim.