Domestic accidents caused by electrical failures represent the third cause of loss in Home Insurance. The companies have reacted by including in their policies a special guarantee for this type of breakdown. Let’s review what your coverages are and the exclusions they may include.
Everything works fine and, from one moment to another, something happens in the electrical system of your home and one or another device is affected.
Indeed, and despite what happened some time ago, today electrical damage claims have grown significantly, reaching 11% of all domestic accidents that insurance companies must reimburse.
In this sense, the electrical appliances most affected by this type of breakdown are washing machines, refrigerators, and televisions.
Electrical damage: definition
Electrical damage is the damage that your electronic equipment can suffer as a result of a breakdown or accident in the home system.
Generally, these damages are caused by voltage spikes and drops, short circuits, lightning strikes, electrical storms, abnormal current, or arcing.
Electrical damage coverage
If you already have a multi-peril policy , you may not have even realized that it includes special coverage against electrical damage. However, you must be careful, as this guarantee is not always contracted automatically.
Generally, electrical damage coverage covers the damages that your installations and electrical appliances may suffer as a result of the claims that we have mentioned above.
A large part of the insurance companies offer a guarantee for damages that occur both in the container and in the content of the home.
Regarding the content, if you have this type of coverage, your insurer should be responsible for the damages caused to your electronic devices.
Some insurers include in their coverage of electrical damage the reimbursement for the loss of power supplies stored in the refrigerator at the time of the accident.
Exclusions in electrical damage coverage
As with the vast majority of coverage in Home insurance, the electrical damage guarantee includes some exclusions where the insurer will not grant any type of reimbursement in the event of a claim.
Among the most common are:
- Age of appliances: generally, all electrical appliances and electronic appliances that are more than 10 years old will be excluded from the coverage. In the case of computer equipment, this time will be reduced to five years. The insurer will have, in most cases, an expert to determine if the breakdown was caused by electrical failure or due to the age of the device.
- Cover cap: not all insurance companies establish the same caps for compensation for electrical damage.
- Appliances with a valid warranty: in the event that the loss has caused damage to an appliance that is under warranty, the cost of repair or replacement will be borne by the manufacturer.
Electrical damage? Learn what to do
If after a strong storm some of your devices are damaged and you don’t know what to do, we advise you to follow the following steps:
- Take a count of damaged electrical appliances.
- Make sure it is not a fault caused by the poor condition of an appliance or its age.
- Contact your insurance company to inform them of the situation. It may be that the company directly sends an expert or other professional to assess the nature of the damage.
- If the insurance company enforces the coverage, it will compensate you for the value of the devices or replace them with another model with similar characteristics.
Insurance fraud: a common practice
For some time now, insurance companies have been the victims of a fairly common type of fraud when it comes to claiming reimbursement for an appliance for electrical damage.
Unfortunately, many people apply to their respective insurers for repair or compensation for an appliance damaged by misuse, arguing a different cause such as a short circuit or a lightning strike.
This situation has given rise to the fact that each day insurance companies have more experts specialized in electrical damage to analyze each case and resolve whether it is a fraud or not.
However, and despite the fact that it is a preventive measure on the part of the companies, this only delays the reimbursement of damages from those who have acted honestly.