Picture this: you’re relaxing at home when suddenly, the lights go out. You find out that the outlet is busted but it takes a licensed electrician to repair it. You’re facing a hefty bill. Which leads to a typical question of: does homeowners insurance cover electrical repairs? Well, like much of anything in the insurance world, the response isn’t just a “yes” or “no.

That depends on your policy, what caused the damage, how old your house’s wiring is, etc. But knowing these things could be the difference between a little inconvenience or a huge financial pain in the butt. This investigation into homeowners insurance and electrical problems will provide you with the foresight to deal with these matters with confidence. As one of the leading Lehigh Valley electrical contractors, we strive to offer top-notch services that meet all your electrical needs.

Understanding Your Homeowners Insurance Policy

Homeowners’ insurance policies are very complicated and intricate, with important details hidden within them, so read them over carefully and try to get as firm a comprehension of them as possible.

Coverage for Sudden and Accidental Events

Typically, homeowners insurance will cover electrical damage due to a sudden and accidental loss. These “covered perils” usually include lightning, power surge from outside the home, or fire due to wiring.

If a lightning bolt burns out your breaker box, your insurance will probably pay for that. But if the damage is due to normal wear and tear or neglect, it will most likely not be covered. For example, if your 50-year-old wiring finally gives up, leading to a short circuit, your insurer may argue it was due for an upgrade and deny your claim.

The Importance of Proper Maintenance

Keep in mind, though, that homeowner’s insurance covers you against acts of God, not acts of laziness or lack of maintenance. Your electrical system is up to code for a reason, your safety, and it makes the claims process a lot easier.

Say for instance, you haven’t had an electrician look at your house in like 12 years, and then kablam. They will reject your claim if the investigation shows that normal maintenance could have avoided the damage.

Out With the Old: Issues With Outdated Wiring

Outdated wiring systems, such as knob-and-tube or aluminum wiring, present significant risks and may lead to complications with your coverage. Over 350,000 home fires occur annually in the United States, with outdated electrical systems significantly contributing. Due to the increased fire risk they pose, insurers are often hesitant to offer full coverage to homes with these older wiring types.

Some insurance companies only cover homes with modern wiring, while others offer coverage at significantly higher premiums or demand a complete electrical system upgrade as a condition of coverage. It’s vital to check with your insurer about their stance on these older wiring systems. Do they consider certain types of wiring a hazard?

When Your Homeowners Insurance Might Not Cover Electrical Repairs

Knowing when your homeowner’s insurance will not pay for your electrical repair. Being prepared for potential exceptions helps prevent unwelcome surprises when disaster strikes.

Normal Wear and Tear

As mentioned earlier, a standard homeowner’s policy doesn’t typically cover gradual wear and tear on your electrical system, whether it’s frayed wires or outlets that don’t work anymore just because they are old. Basically, it is up to the homeowner to keep up their home, and when something becomes too outdated or is just not working anymore, to replace it.

Faulty Workmanship

Any electrical work not done by a licensed electrician, or just plain hack jobs will not be covered. Your insurance company will not cover your claim if the damage is due to improper installation or unauthorized repairs.

In which case, you have to go after compensation in other ways, such as suing the irresponsible contractor. Would this be considered an electrical fault? It’s best to consult with your insurance company to find out.

Code Violations

If your electrical system is not up to code, they will not likely cover damages due to that. Electrical codes exist to safeguard your home, and ignoring them puts your home at unnecessary risk.

Not complying with these codes raises safety concerns and jeopardizes your insurance coverage. Your insurance company is going to consider this “an increased risk” and reject your claim.

Excluded Items in Your Policy

Your insurance may not include some electrical contingencies or components. I.e., your policy may include an average breaker box repair and not others simply because of the risk factor. Go over your policy and talk to your insurance agent about any gray areas so that you will not have any shockers. But with scheduled periodic inspections, you can take the initiative to see that your home is in electrical compliance and avoid problems and substantiate future insurance claims, not to mention showing that you care about your house and safety.

From a flashing light to a hot outlet, any kind of electrical trouble needs immediate attention to avoid more, possibly hidden, problems. Instead of doing do-it-yourself repairs, always get advice from a certified electrician because poor work can void your insurance claim.

In the event of an electrical problem, it will be very helpful to have thorough records of inspections, repairs, and upgrades in order to speed up the claims process and give your insurance company the evidence that they need in order to justly compensate for the damage. Our Quakertown electricians are well-equipped and trained to handle any electrical task, ensuring your home or business runs smoothly.