Insurance Basics: Everything You Need to Know

Homeowner's Insurance Coverage For Losses Due To Power Outages

Having electricity in your home is probably something you take for granted, as most people do, and you might not even realize how much you rely on your electricity until a power outage occurs. Power outages can occur in the summer or winter and can be the result of storms, accidents, and other perils. If you have damage or losses due to a power outage, you might be able to receive compensation for these losses from your homeowner's insurance company. Here are a few things to understand about home insurance and losses from power outages.

Your policy will most likely cover certain losses

With most policies, homeowner's insurance will cover certain types of losses you might experience due to a power outage. One common type of loss your policy will likely cover is loss of food. If your refrigerator goes out due to the power outage and is out for several days, you would lose all the food you have in it. Your policy would compensate you for this loss. Additionally, your policy might cover other losses due to a power outage, including damage caused by burst pipes due to frozen lines and damage caused to your electronics from power surges.

Your policy may exclude covering certain types of losses

Additionally, your policy is not likely to cover certain losses you have from a power outage unless you have extra types of coverages on your policy. For example, if you decide to stay in a hotel during the few days when the power is out, your insurance company will not pay for your hotel stay.

You may have a deductible to pay

If you experience a loss from a power outage that would be covered under your insurance policy, you would likely have to pay a deductible before your insurance coverage would kick in. The amount of your deductible is stated in your policy.

Having ALE coverage is important for situations like this

To fully protect yourself from power outages and other types of problems you might have that would cause you to have to move out of your house, you should consider adding additional living expense (ALE) coverage to your policy, as this would protect you even more.

If you currently are not happy with your homeowner's insurance policy, why not contact another company to find out if you can obtain better coverage for a reasonable price? You can do so by talking to an insurance agent today.