Short answer: Lightning usually yes; other power surges, it depends. Homeowners policies generally cover damage caused by lightning, including surges it sends through wiring. Surges from the utility grid or your own electrical system are often limited, because many policies exclude damage to electronic components and circuitry from artificially generated current. An equipment breakdown endorsement can fill that gap.
Lightning vs. other surges
- Lightning is a named covered peril in standard homeowners policies. Damage to the home and to belongings from a lightning strike, including resulting surges, is generally covered, minus the deductible.
- Artificially generated electrical current, such as a utility surge, a transformer failure or a wiring fault, is treated differently. Many standard policy forms cover sudden and accidental damage from artificially generated current but exclude damage to tubes, transistors, electronic components or circuitry that are part of appliances, computers and home entertainment equipment. That exclusion can leave TVs, computers and smart appliances unprotected.
Policy forms vary, and some insurers write broader coverage. Read your personal property perils and exclusions.
Fire caused by a surge
If a surge starts a fire, the fire damage is generally covered as a fire loss. See California wildfire insurance checklist for related fire coverage tips.
Equipment breakdown endorsement
Many insurers offer an equipment breakdown or home systems protection endorsement that can cover:
- Electrical surges damaging appliances and electronics
- Mechanical breakdown of HVAC systems, water heaters and appliances
- Breakdown of solar equipment or home batteries, depending on the endorsement
See what does equipment breakdown insurance cover and does homeowners insurance cover AC breakdown.
Utility claims in California
If a utility's equipment failure or work caused a surge, you may be able to file a claim directly with the utility. Utilities have claims processes on their websites. If you disagree with a utility's decision, the California Public Utilities Commission handles consumer complaints about regulated utilities. Your insurer may also pursue the utility after paying a claim.
Public Safety Power Shutoffs and outages
Power shutoffs and outages themselves usually aren't covered events, but food spoilage coverage may apply in some policies. See power outage food spoilage insurance.
What to do after a surge or lightning strike
- Check for fire and safety hazards. Call 911 if you smell burning.
- Unplug damaged equipment.
- Document damaged items with photos, model and serial numbers.
- Get a repair technician's written statement of the cause, such as "damage consistent with power surge."
- Note the date and time and any storm or outage reports.
- Contact your insurer and, if the utility may be responsible, the utility.
- Keep damaged items until the adjuster says you can discard them.
Prevention
- Use quality surge protectors for electronics, and replace them as recommended
- Consider a whole-home surge protector installed by a licensed electrician
- Unplug sensitive electronics during lightning storms
- Have older wiring inspected
- Make sure your home is properly grounded
Common scenarios
Lightning strikes a tree and fries your TV and router. Lightning is generally covered, minus the deductible.
A transformer blows and your refrigerator's control board fails. The electronic components exclusion may apply unless you have equipment breakdown coverage. You may have a utility claim.
A surge sparks a fire in the garage. The fire damage is generally covered.
Your computer dies during a brownout. Possibly excluded under the electronic components language. Check equipment breakdown coverage and the computer's warranty.
Business equipment
Home-business computers and equipment may have low limits under homeowners policies. See does homeowners insurance cover a home business.
Bottom line
Lightning damage is one of the clearer homeowners claims. Utility and wiring surges are where coverage gets complicated, especially for modern electronics and smart appliances. Read the electrical current language in your policy, consider an equipment breakdown endorsement, use good surge protection and keep the utility claim option in mind when the grid caused the problem.
Contact Alishahi Insurance or call (877) 711-4545. See homeowners insurance.
Frequently asked questions
Does homeowners insurance cover power surges?
Lightning-caused surges usually yes. Other surges may be limited because many policies exclude damage to electronic components from artificially generated current.
Is lightning damage covered by homeowners insurance?
Generally yes. Lightning is a standard covered peril.
What covers surge damage to electronics if my policy doesn't?
An equipment breakdown endorsement may cover surge damage to appliances and electronics.
Can I file a claim with the utility for surge damage?
Yes, if the utility caused it. California utilities have claims processes, and the CPUC handles complaints.
Is a fire caused by a power surge covered?
Generally yes, as a fire loss.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.