Power surges and homeowners insurance: What’s covered?

Power surges can happen in an instant, and the damage they leave behind is often expensive. From refrigerators and washing machines to TVs and computers, a sudden spike in electricity can harm some of the items you rely on every day.

Fortunately, homeowners insurance may help cover certain power surge damage to electronics and appliances, but it depends on what caused it and the coverage included in the policy.

In this guide, you’ll learn what a power surge is, when homeowners insurance may help cover the damage, and proactive steps you can take to protect your home and belongings.

What is a power surge?

A power surge is a sudden spike in electrical voltage that can damage your home’s appliances, electronics, or wiring. Most power surges last only a fraction of a second, but that can be enough time to cause serious damage.

Power surges can happen for several reasons, including:

• Overloaded outlets
• Damaged or faulty wiring
• Large appliances cycling on and off
• Power outages
• Downed power lines
• Lightning strikes

Because power surges can come from inside or outside the home, it’s helpful to understand both the cause of the surge and the coverage available under your policy.

Does homeowners insurance cover power surge damage?

Standard homeowners insurance may cover damage caused by a power surge, but coverage depends on the cause of the surge, policy details, and exclusions.

In many cases, the personal property coverage portion of a homeowners policy may help pay to repair or replace appliances and electronics damaged in a covered loss.

For example, if lightning or another covered event causes a power surge that damages or destroys your appliances or electronics, your personal property coverage may help cover those losses.

Because coverage varies by policy, it’s a good idea to review your policy details with your American Family Insurance agent. A personal insurance review can help you understand your limits, deductibles, and optional coverages.

What types of power surge damage may be covered?

Depending on your policy, homeowners insurance may help cover damage to:

Appliances

Appliances like refrigerators, dishwashers, and washing machines may be protected under personal property coverage if they’re damaged by a covered power surge event.

Electronics

Items such as TVs, computers, gaming systems, and other electronics may also be covered under personal property coverage if the loss is caused by a covered event.

Electrical wiring

If a covered loss results in damage to your home’s wiring, your policy’s dwelling coverage may apply, depending on the policy terms and circumstances of the loss.

When power surge damage may not be covered

Not every power surge loss is covered the same way. Coverage depends on the cause of the damage, your policy terms and any exclusions or limitations that apply.

That’s why it’s important to read your policy carefully and talk with your agent if you have questions. If you want extra peace of mind for unexpected electrical or mechanical breakdowns, optional equipment breakdown coverage may be a smart addition.

What is equipment breakdown coverage?

If you want broader protection for certain home systems and devices, equipment breakdown coverage may be worth considering.

This optional endorsement provides protection against damage caused by unexpected mechanical or electrical breakdowns affecting covered items like:

• Appliances
• Home systems
• Smart home devices

Equipment breakdown coverage may help reduce what you would otherwise pay out of pocket for repair or replacement after certain electrical or mechanical failures. It does not provide coverage for breakdown caused by normal wear and tear.

If you’re interested in added protection, learn more about equipment breakdown coverage and talk with your agent about whether it fits your needs.

How to file a claim for power surge damage

If personal property in your home gets damaged by a power surge, you may be able to file a claim with your insurance company. Taking a few simple steps can help make the process easier.

1. Document the damage

As soon as it’s safe, inspect the damage and make a list of affected items. Include details such as:

• What was damaged
• When the damage happened
• How the incident occurred

Photos and receipts can also be helpful during the claims process.

To be proactive and better prepared for the unexpected, consider creating an inventory of personal property in your home, including electronics. Not only can this make filing a claim a smoother process, but it helps you and your agent determine whether you have the right amount of coverage for the things that matter to you.

2. Contact your insurance provider

To start a claim with American Family, you can:

• File online through My Account or the MyAmFam app
• Contact your agent
• Call 1-800-MYAMFAM (1-800-692-6326)

3. Review your deductible

Before insurance pays for a covered loss, you’ll usually need to meet your deductible. If the cost to repair or replace the damaged property is higher than your deductible, it may make sense to move forward with the claim.

4. Work with your adjuster

Your claims adjuster will review the damage and help determine next steps. If the loss is covered, payment may be issued to help repair or replace the damaged property.

How to help prevent power surge damage

While power surges can’t always be avoided, taking proactive steps to help reduce the risk of damage in your home is a smart move.

Here are a few safety tips to help prevent power surges:

Unplug electronics you aren’t using. Not only does this help protect them from sudden voltage spikes, but it may also help you save on your energy bill.

Unplug devices during a storm. If severe weather is approaching, unplug your electronics when it’s safe to do so. This may help protect them from lightning-related surges.

Use surge protectors. Plug valuable electronics into surge protectors to help block excess voltage from reaching them.

Update old wiring. Frequent blown fuses, tripped circuit breakers, or flickering lights can be signs of wiring problems. By inspecting outdated or damaged wiring, you may help reduce the risk of power surges and other hazards, including fire.

Protect your home from the unexpected

Power surges can happen without warning, but understanding your homeowners insurance coverage can help you feel more prepared.

If you want help reviewing your policy or exploring optional coverages like equipment breakdown coverage, connect with your American Family agent. You can also get a homeowners insurance quote to learn more about your options.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

Coverage provided by adding the Equipment Breakdown optional endorsement. Does not provide coverage for breakdown caused by normal wear and tear. Limits, exclusions and deductible apply. Availability varies based on the way you purchase insurance and by state. Refer to your policy or talk to your agent for details.