Does Home Insurance Cover Electrical Problems?
Electrical issues can cause serious damage to a home, from short circuits to house fires. Many homeowners wonder whether their insurance policy will cover electrical failures, repairs, or resulting damage. The answer depends on the cause of the problem and whether it is considered sudden, accidental, or due to neglect. Below is a clear breakdown of how homeowners' insurance responds to electrical issues.
Coverage for Sudden and Accidental Electrical Damage
Homeowners insurance typically covers sudden and accidental electrical damage, especially when it results from a covered peril. For example, if a lightning strike causes a power surge that damages appliances, HVAC systems, or wiring, your policy may pay for repairs or replacements.
Common sudden events that may be covered include:
- Lightning strikes or power surges
- Electrical fires
- Short circuits that cause smoke damage
- Damage caused by a fallen tree impacting electrical lines
In these cases, the insurer will often cover both the electrical repair and any resulting property damage.
What’s Not Covered: Wear, Tear, and Poor Maintenance
Home insurance generally does not cover electrical problems caused by:
- aging wiring
- outdated electrical panels
- improper DIY electrical work
- neglect or failure to maintain the system
- code violations
If faulty wiring deteriorates over time or a home still uses an old fuse box, insurers consider those maintenance issues. Any repairs or replacements would be the homeowner’s responsibility.
Coverage for Resulting Damage
Even when insurance does not cover the faulty wiring itself, it may still cover damage caused by the electrical problem. This is known as “resulting damage.”
For example:
- A frayed wire sparks a fire → the wiring replacement may not be covered, but the fire damage to walls and belongings typically is.
- A power surge destroys appliances → appliances may be covered, depending on the policy.
This distinction is an important part of home insurance protection.
Optional Add-On: Equipment Breakdown Coverage
Many insurers offer an optional endorsement called equipment breakdown coverage, which expands protection for electrical failures. It can cover:
- HVAC systems
- appliances
- electrical panels
- electronics damaged by power surges
This add-on is usually inexpensive and can be valuable in areas prone to storms or unstable grids.
