Does Homeowners Insurance Cover Electrical Repairs? What Homeowners Need to Know
As a master electrician with years of experience serving the Greenville community, one question I frequently hear from homeowners is whether their insurance policy covers electrical repairs. The answer isn't always straightforward, which is why I've created this guide to help you understand what is and isn't covered when it comes to electrical issues in your home.
When Does Homeowners Insurance Cover Electrical Repairs?
When it comes to electrical repairs in your home, homeowner insurance generally covers repairs only when damage occurs from unexpected events like lightning strikes or fires—but won't help with issues that develop gradually through aging or regular use of your electrical systems. These covered perils generally include:
Lightning strikes
Fire damage
Storm damage (such as from hurricanes or tropical storms)
Fallen trees that damage electrical systems
Other covered disasters specified in your policy
For example, if lightning strikes your home and damages your electrical panel, wiring, or appliances, your homeowners insurance would likely cover the repairs or replacements needed.
What Electrical Issues Are NOT Covered by Homeowners Insurance?
It's equally important to understand what your standard homeowners policy won't cover:
Regular wear and tear of electrical components
Damage due to improper maintenance
Problems resulting from poor installation
Electrical issues caused by misuse
Routine upgrades to outdated systems
Preventative maintenance or repairs
In other words, if your electrical panel simply fails due to age or your wiring becomes outdated, you'll be responsible for those costs yourself.
Electrical Components and Home Insurance Coverage
When assessing what's covered, it helps to look at specific electrical components separately in your home:
Electrical Wiring
Standard Coverage: Wiring damaged by covered perils (fire, lightning, etc.)
Not Covered: Upgrading outdated wiring, repairs due to deterioration, or fixing improper installation.
Electrical Panels
Standard Coverage: Replacement if damaged by covered disasters.
Not Covered: Upgrading an outdated electrical panel for safety, capacity or energy efficiency reasons.
Electrical Appliances and Lighting Fixtures
Standard Coverage: Damage to fixtures, fans, or appliances if caused by covered perils.
Not Covered: Mechanical failure due to age or regular use.
Special Considerations: Outdated Electrical Systems
Aluminum & Knob-and-Tube Wiring
Many insurance companies have specific policies regarding older wiring systems such as Aluminum and Knob-and-Tube Wiring.
Some insurers will refuse coverage for homes with knob-and-tube wiring
Others may charge significantly higher premiums
In some cases, insurers may require upgrading these systems as a condition of coverage
This stricter stance is due to the higher fire risks associated with these outdated systems. Knob-and-tube wiring has insulation that becomes brittle over time and can expose bare conductors. Aluminum wiring can also present risks that make it a concern for insurers.
Building Code Coverage: An Important Consideration
When repairs are covered after a disaster, you might face additional costs if local building codes have changed since your home was built. For example, if lightning damages your electrical system and current code requires upgrades beyond simple repairs, standard insurance might not cover these additional costs.
Some policies include "building ordinance or law coverage" that helps pay for these code-required upgrades. Check if your policy includes this protection.
Extended Home Warranties: An Alternative for Electrical Coverage
If you're concerned about covering wear-and-tear electrical issues, not addressed by standard homeowners insurance, consider an extended home warranty. This could be great alternative to your standard coverage, as these plans often cover:
Lighting fixtures
Electrical panels
Wiring and junction boxes
Circuit breakers, fuses, and switches
Ceiling and exhaust fans
Garage door openers
Smoke detectors
Electric motors and mechanical parts of appliances
Steps for Electrical Safety and Insurance Savings
As a homeowner, taking proactive steps can not only keep your family safe but may also reduce your insurance costs:
Upgrade outdated electrical panels - This can lead to lower insurance premiums and improved policy conditions.
Replace aluminum or knob-and-tube wiring - Removing these high-risk systems can significantly improve insurability.
Have regular electrical inspections - Catching problems early prevents larger issues.
Work only with licensed and insured electricians - Proper installation prevents future problems.
Document all electrical upgrades - Keep records to share with your insurance company.
Purchasing a New Home? Protect Your Investment
Whether you're buying your first home or have owned one for years, these simple steps can help keep your electrical systems safe:
Before purchasing a home, hire a licensed electrician to inspect all electrical systems
Look specifically for outdated wiring types that might affect insurability
Budget for necessary electrical upgrades when purchasing an older home
Review your insurance policy to understand electrical coverage specifics
Consider a home warranty for additional protection of electrical components
At Redland Electric, we strongly advise homeowners to be proactive about electrical safety. Don't wait for problems to occur—schedule an electrical inspection today. Our team of licensed and insured electricians can identify potential issues before they become serious problems that might not be covered by your insurance.
Remember, working with qualified professionals not only ensures the job is done right but may also save you thousands of dollars in unnecessary repairs and insurance complications down the road.