When is a power surge not covered under homeowners insurance? Make sure to read through your policy and talk with your insurance agent to determine what coverage you have and the limits for each section. Some policies have higher limits for personal property coverage than others and again, some policies are on a replacement cost basis and some are on an actual cash value basis. There are major differences in coverage limit to one’s personal belongings as well. Actual cash value limits will typically be lower than the replacement cost limit because the actual cash value basis will take into account depreciation in the value of the dwelling over time, whereas the replacement cost basis will not. This can potentially lead to vastly different amounts that are reimbursed for the same amount of damage caused by a power surge. When it comes to dwelling coverage some policies cover the structure of the home up to the actual cash value of the home and some cover the structure of the home up to the replacement cost value of the home. It is important to note the coverage limit in each section of the policy. If this is determined to be the cause, many types of home insurance policies will cover the damage. Man-made power surges may occur when the power company is completing maintenance work on the home itself. The electrical strike of the lightning may cause the power in one’s home to surge, resulting in damage or destruction of the home and/ or one’s personal belongings. Lightning strikes are a common cause of electrical fires. Lightning and man-made power surges (not caused by the homeowner) are covered under every form of homeowners insurance. The cause of a power surge is an important factor in deciding whether the damage is covered under a homeowners policy or not. When is a power surge covered under home insurance? Maintenance work or switching that the power company is doing.Does Homeowners Insurance Cover Power Surges?Ī few common causes of power surges include: We thank you for your understanding and support. Your support through clicking on these affiliate links helps us continue our mission of helping people navigate the complex world of home insurance. Therefore, we aim to provide you with unbiased, high-quality content that helps you make informed decisions about home insurance. While the commission from these affiliate links helps us run this website, your trust and satisfaction are our top priority. We recommend only those products and services that we genuinely feel will be of benefit to you, our valued reader. We believe in the value and importance of the services we recommend and strive to ensure they meet the highest standards. Our evaluations are based on comprehensive research, personal experiences, and genuine user feedback. However, it is important to note that our reviews and recommendations are not influenced by these affiliations. It enables us to consistently research and review various home insurance options, so we can present you with the most accurate and up-to-date information. These affiliate links allow us to generate income that helps us maintain the quality and relevance of the content we provide. This means that we may earn a small commission at no extra cost to you if you choose to make a purchase after clicking on these links. It is our responsibility to inform you that some of the links provided on our website are affiliate links. Advertising Disclaimer Advertising Disclaimer We at HOIC believe in transparency and honesty in all our endeavors.
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