What Power Outages Does Insurance Cover?

Only momentary power outages can be bothersome. However, power outages that last extended periods can do severe damage. If you encounter an unexpected power loss, you may end up with an unexpectedly hefty bill, including lodging expenses, damaged food, electrical damage, and more. While house insurance policies cover a variety of problems, power outages may not be covered.

In many instances, the cause of a power outage will influence whether or not insurance would pay damages. Typically, homeowner's insurance policies include a limit on how much is paid out for losses caused by a power outage, and filing a claim is not always the best course of action.

What power disruptions are covered by insurance?

Your homeowner's insurance policy will outline the detailed coverage for power outages, although home insurance typically covers outages caused by lightning or other meteorological conditions. However, most homeowner's insurance policies do not cover broad or widespread power outages.

Suppose your electricity goes out due to a botched do-it-yourself job, or your utility company turns it off due to unpaid bills or flooding. Your insurance policy may not cover losses or damages in such a situation. High-quality homeowner's insurance policies will cover power outages caused by a lightning strike, a tree that falls on power lines, a tornado, or a storm.

What power outage losses are covered by insurance?

Prolonged power outages frequently incur an array of unforeseen expenses. Power outages are tremendously annoying due to the destruction of electrical equipment and the loss of food stored in freezers. Most homeowners' insurance policies do not cover food spoilage. However, your insurance provider may reimburse you, and if your utility company caused the power outage, you might also receive compensation.

In addition, insurance companies limit the amount they would pay for rotting food due to a power outage. In some instances, pursuing an insurance claim for ruined food is not worthwhile. If your food spoilage losses are minor, submitting a claim with your insurance company could result in a rate hike.

If a power outage destroys your electronic devices, your insurance provider may compensate you for the loss. In addition, if you require repairs because of a lightning strike or storm damage that resulted in a power outage, your homeowner's insurance would generally cover the costs.

Does insurance cover hotel expenses during a blackout?

In most circumstances, an insurance company will not cover a hotel stay due to a power outage. However, your insurance provider may pay for your hotel stay if your home is deemed uninhabitable due to lightning, fire, or storm damage. Your insurance coverage may cover hotel expenses if it is unsafe to remain at home during repairs.

Can an insurance claim be filed for a power outage?

If your electricity company is responsible for the outage, you may be able to file a claim with your insurance company. However, if you caused the power loss, it is unlikely that your homeowner's insurance will cover the lack of electricity.