Daphne, who has Denver renters insurance, brings us today’s question and it’s a tricky one. Daphne asks,
Does renters insurance cover power surges? I live in an older building and the electric is less than idea. I want to know what’s covered when there’s a power surge.
That’s a great question Daphne, and there are actually two separate answers to it.
Are Power Surges Covered By Renters Insurance?
Power surges are one of the most common causes of damage to electronics, as well as to homes. Under what circumstances would renters insurance cover a loss like that?
Does Renters Insurance Cover Power Surges?
For this one, we’re going to have to look directly at the policy to understand why there are two different answers. Under the covered perils on personal property,
This peril does not include loss to tubes, transistors, electronic components, or circuitry that are a part of appliances, fixtures, computers, home entertainment units, or other types of electronic apparatus.
In other words, your electronics and appliances are not covered during power surges under your renters insurance. However, there’s a second answer that most people don’t think about.
Does Renters Insurance Cover Power Surges And Damage From Them?
Referring to the policy provision noted above, it wouldn’t be listed as a covered peril if it didn’t cover something. So what does renters insurance cover power surge damage to?
Renters insurance will cover damages resulting from problems indirectly caused by the power surge. While your TV isn’t covered for damage to the electronics, it would be covered if the surge overloaded the wiring and caused a fire. If someone hits a light pole and the live wire comes down across your child’s bicycle laying in the yard, that could be a covered loss. If that live wire comes down across the metal sewer cap in your yard, resulting in an explosion from igniting those gasses, there could be coverage.
What Else Should I Know About Renters Insurance And Electricity?
Power failure in and of itself is not a covered loss when it occurs off the residence premises. So if a transformer blows and prevents you from cooking your dinner, not a covered loss. If a circuit breaker in your home explodes, that power failure could have coverage for losses. Though if a circuit breaker explodes, you’ve got bigger problems. The key is “if the failure results in a loss from a Peril Insured Against, on the residence premises,” there could be coverage.
To find out more about renters insurance, power surges, and how to protect yourself, contact Effective Coverage at (800)892-4308 and speak to a renters insurance expert.