Does Homeowners Insurance Cover the Loss of Food Due to Power Outage?
Power outages can cause a major disruption in your home — especially if they last for days! It may even result in damage or loss of frozen and refrigerated foods. The good news is your homeowners insurance may be able to help you recoup the losses.
Let’s take a look to better understand if loss of food due to power outages is covered under your homeowners insurance policy.
Insurance Coverage for Food Spoilage and Food Loss
Your standard homeowners policy will provide some coverage for food loss due to a power outage or a mechanical failure of the refrigeration equipment — usually $500 or $1,000. So whether your power outage is caused be a tree in your yard falling on the line, or is from an outage that occurs off your premise, you’ll have some protection for spoiled food that results.
Will a power company pay for spoiled food if they caused it? Actually, yes, sometimes utility and power companies reimburse the cost of food if they were at fault for the power outage. If that’s the case, it’s beneficial to reach out to see if reimbursement is a possibility.
If your refrigerator malfunctions for reasons other than a power outage, your home warranty might cover any food spoilage. And while your homeowners insurance will provide some coverage, adding equipment breakdown coverage increases your limit to $10,000 for food spoilage caused by power interruption or mechanical failure.
Submitting a Food Loss Claim
If you plan on submitting a food loss claim, expedite the claim process for food spoilage by having the following on hand:
- Documentation of the food that was lost
- Pictures of the loss if possible
- An estimated expense of the lost food
- Any receipts for expensive items — like steak or lobster
Compensation for Food Loss
Remember that your homeowners insurance only covers up to the specified limit on your policy. For example, coverage for spoiled food has a limit of $1,000, meaning if your loss is above that amount, the most you’ll be paid is $1,000. Keep in mind that you may have to pay a deductible before your insurance will cover the rest. Knowing how much your deductible is and your coverage limit for spoiled food will help when deciding if it’s worth it to file a claim for food loss reimbursement.
Get Insurance Coverage for Power Outage Losses
Your homeowners insurance protects you in many ways — find out more about how the right homeowners coverage can bring you peace of mind.
Not sure if your current policy covers food spoilage? Set up a personal insurance review to ensure you're properly protected.