Homeowners insurance protects your home and personal belongings from various perils, including fires, storms, and theft. But we often wonder whether electrical problems fall under this protective umbrella. This often depends on the homeowner’s insurance policies, which can differ significantly across providers and individual coverage.

It’s essential to review your specific policy for details regarding the protection offered for electrical problems. Efficient Systems, Inc., a trusted name in residential electrical services, shares more insight.

Cause of Electrical Problems

Sometimes, homeowners insurance can cover electrical problems under the following circumstances:

• Sudden and Accidental Damage – If an electrical problem primarily occurs due to a covered peril, such as a lightning strike or an unexpected power surge, your policy likely provides coverage for damage repair or system replacements.

• Fires Caused by Electrical Problems – Home insurance typically covers fire damage caused by faulty wiring, overloaded circuits, or similar electrical issues – as long as negligence is not a factor.

However, homeowners insurance may not cover electrical problems in these cases:

• Wear and Tear – If the electrical problem is due to regular wear and tear or aging systems, your insurance policy usually won’t cover it. Maintenance is the homeowners’ responsibility, and it’s essential to address any electrical system deterioration with the help of an electrical contractor before a major problem arises.

• Negligence or DIY Errors – If the electrical problem is a result of improper installation, conducted personally or by an unqualified contractor, your insurance company may deny your claim.

Coverage Limits and Deductibles

Even when homeowners insurance covers electrical problems, familiarizing yourself with your policy’s limits and deductibles is imperative. Coverage limits define the maximum amount an insurance company pays for a covered loss.

At the same time, deductibles represent the amount the homeowner is responsible for paying out-of-pocket before the insurance coverage kicks in. Make sure to understand the financial impact and plan accordingly.

Policy Endorsements and Exclusions

Various non-standard coverages can protect your home specifically from electrical problems, such as Equipment Breakdown Coverage or Service Line Coverage. These endorsements are typically purchased separately and added to your existing policy. Speak with your insurance agent to discuss your options.

On the other hand, check for policy exclusions that might impact the coverage for an electrical problem. While most policies cover damage caused by electrical fires, there might be exclusions, especially regarding DIY mistakes or unlicensed contractors’ work.

Let the Pros Guide You Through Your Electrical Problems