Power outages happen during storms, heat waves, wildfires and planned utility shutoffs. A long outage can spoil food and medicine. A surge when power returns can fry electronics. Businesses can lose a day's sales or more. Whether insurance helps depends on what caused the outage and what your policy says. This guide explains how home, renters and business policies typically handle outages.
The key question: where did the outage start?
Many homeowners and renters policies treat outages differently depending on where the problem began.
- Off-premises power failure: many policies exclude losses caused by a power failure that starts away from your property, such as a utility line down miles away or a planned shutoff, unless a covered peril also happens at your home as a result.
- On-premises damage: if a covered peril such as lightning, fire, a fallen tree or wind damages the electrical system at your home and causes an outage, resulting losses may be covered, subject to your deductible.
Read the power failure exclusion in your policy. See our declarations page guide for help reading your policy.
Food spoilage
Some homeowners and renters policies, or optional endorsements, cover refrigerated property that spoils because of a power interruption or mechanical breakdown of a refrigerator or freezer. Limits are often modest, such as a few hundred dollars, and may have a lower deductible or none at all.
Even where it's covered, a spoiled-food claim may not be worth filing if your deductible is higher than the loss. Claims can also go on your claims history. See our CLUE report guide.
Utility claims: some utilities have their own claims processes for losses caused by outages. Check with your utility, and keep receipts and photos.
Power surges
Damage from a power surge may be covered depending on the cause and policy wording. Surges caused by lightning are commonly covered under homeowners policies. Surges caused by the utility, or "artificially generated electrical current," may be excluded or covered only in limited ways. Some insurers offer equipment breakdown endorsements for homes, which can cover surge damage to appliances and systems. See our page on equipment breakdown coverage.
Protect electronics with surge protectors, and consider a whole-house surge protector installed by a licensed electrician.
Hotel and living expenses
If an outage makes your home unlivable, ALE generally applies only if a covered peril caused the damage. A widespread utility outage alone usually isn't enough. A civil authority evacuation related to a covered peril may trigger limited ALE. See our additional living expenses guide.
California Public Safety Power Shutoffs (PSPS)
California utilities may proactively turn off power during high wildfire risk to reduce the chance of utility equipment sparking a fire. These Public Safety Power Shutoffs can last for hours or days. The California Public Utilities Commission explains PSPS events and utility responsibilities: CPUC – Public Safety Power Shutoffs.
Because a PSPS is an off-premises shutoff, losses such as spoiled food often aren't covered under homeowners policies unless a specific endorsement applies. Prepare ahead:
- Sign up for utility outage alerts.
- Keep coolers, ice packs and a supply of nonperishable food.
- Plan for medical devices and refrigerated medications. Utilities may offer medical baseline programs and backup power support.
- Charge phones and keep battery packs.
Generators and batteries
- Portable generators can cause carbon monoxide poisoning. Never run one indoors or in a garage, and keep it away from windows and doors.
- Standby generators and home batteries should be installed by licensed professionals with permits. Improper connections can backfeed into utility lines and endanger workers.
- Tell your insurer about installed generators or batteries. Some may affect your dwelling coverage. See our home solar and battery guide.
- Fuel storage: store fuel safely and follow local fire codes.
Businesses: outages and business income
Commercial policies may include business income coverage, but it generally requires direct physical damage at your premises from a covered peril. Utility services or off-premises power coverage can extend business income to outages caused by damage to utility property away from your premises, often with a waiting period. Restaurants and food businesses may want spoilage coverage. See our restaurant insurance page and business interruption guide.
Documenting an outage loss
- Note the time the outage began and ended.
- Photograph spoiled food and damaged items before discarding.
- Make a list with estimated replacement costs.
- Keep receipts for replacement items, ice, generators and hotels.
- Ask an electrician for a written report on the cause of any surge damage.
- Contact your insurer and, if appropriate, your utility.
Power outage checklist
- ☐ Read your policy's power failure exclusion
- ☐ Ask about refrigerated property and equipment breakdown endorsements
- ☐ Install surge protection
- ☐ Sign up for utility alerts and PSPS notifications
- ☐ Plan for medical needs and refrigerated medications
- ☐ Use generators safely and tell your insurer about installed systems
- ☐ Business owners: ask about utility services and spoilage coverage
Contact Alishahi Insurance or call (877) 711-4545.
Frequently asked questions
Does homeowners insurance cover food spoiled in a power outage?
Sometimes. Some policies or endorsements cover refrigerated property for a modest limit. Many exclude losses from off-premises power failures unless a covered peril also affects your home.
Is power surge damage covered?
Surges from lightning are commonly covered. Surges from other causes may be limited or excluded. Equipment breakdown endorsements can help.
Are losses during a California Public Safety Power Shutoff covered?
Often not under homeowners policies, because the shutoff starts off-premises, unless a specific endorsement applies.
Will insurance pay for a hotel during a power outage?
Generally only if a covered peril made your home unlivable or a civil authority order related to a covered peril applies.
Can businesses insure against off-premises power outages?
Utility services or off-premises power coverage can extend business income coverage to some outages, often after a waiting period.
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.