Does insurance cover power outages?

downed power lines

Short power outages can be annoying, while significant power outages can cause substantial damages. If you experience an unexpected power outage, you may end up with an unexpectedly high bill, including hotel costs, spoiled food, electrical damage, and more. While home insurance policies cover a lot of damages, your policy may not cover power outages.

In many cases, the source of the power outage can determine whether insurance will cover the damages. Home insurance policies typically have a cap on home much is paid out for damages caused by a power outage, and filing a claim is not always the best solution.

Keep reading to learn whether power outages are covered by insurance, including hotel costs and spoiled food.

What power outages does insurance cover?

Your home insurance policies will detail the specific coverage for power outages, but home insurance typically covers power outages caused by lightning or other weather events. However, general or widespread power outages are generally not covered by homeowners’ insurance.

Suppose your electricity goes out because of a DIY project gone wrong, your utility provider cutting off the electricity due to outstanding bills, or flooding. In that case, your insurance may not cover losses or damages. Quality homeowners’ insurance policies will cover power outages due to a lightning strike, a fallen tree that knocks out power lines, a tornado, or a storm that cuts off your power.

What power outages losses does insurance cover?

Prolonged power outages often come with a myriad of unexpected costs. From ruined electronic devices to refrigerators full of food, power outages are incredibly inconvenient. Most home insurance policies do not cover spoiled food. However, your insurance company may reimburse you, or you could receive a reimbursement from your utility company if they caused the outage.

Insurance companies also cap the amount they will pay for spoiled food due to a power outage. In some cases, filing a claim on your insurance for spoiled food is not worth the trouble. If your losses for spoiled food are minimal, filing a claim with your insurance could cause your rates to increase.

If a power outage fries your electronics, your insurance company may cover the losses. Also, if you need repairs due to a lightning strike or storm damage that caused a power outage, your homeowners’ policy will typically cover the cost.

Does insurance cover hotel costs during a power outage?

In most cases, a power outage is not enough for your insurance company to pay for a hotel stay. However, if your home is considered unlivable due to lightning, fire, or storm damages, your insurance company might cover the cost of a hotel stay. Your insurance policy may cover hotel costs during repairs if it is not safe to stay at home during the process.

Can you file an insurance claim for no electricity?

If your power company is at fault for your power outage, you may be able to file a claim with your insurance. However, if you caused the power outage, your home insurance policy will not likely cover a lack of electricity.

If you are worried about your home insurance coverage for a power outage, it may be time for a new policy. Start your quote today for comprehensive home insurance!