Does Renters Insurance Cover Power Surges?

While it's estimated that, in North Carolina, 95% of homeowners carry homeowners insurance, only about 40% of renters have renters insurance. Those who do carry renters insurance have taken an important step toward helping guard their financial futures, and not only for the replacement cost of their personal property in the event of a fire or a burglary but also in case someone gets injured at their place and they're held liable.

Understanding Your Renters Insurance Coverage

Renters insurance is extremely affordable compared to homeowners coverage, at a comparative cost of only about 15%. According to Insurance Information Institute data from 2013, North Carolina has some of the most reasonable renters insurance rates in the country, running about $146/year at that time, one of the cheapest in the country. The reason renters insurance is so much less expensive than homeowners coverage is because the property it protects is strictly personal. If structural damage or loss is suffered in your rental home, it's the landlord's insurance policy that covers the claim.

Coverage For Power Surges

Power surges occur when the electricity going to your home is suddenly interrupted, even for just a few seconds, and then suddenly comes back on again. Electronic equipment and electrical appliances are designed to run at a certain voltage, usually 120 volts. Voltage, however, is not constant, but runs within a range between zero volts and 169 volts (peak power). When the power is disrupted and then suddenly comes back on it can send a power surge down the electric lines far in excess of the maximum 169 volts your electrical equipment is designed to handle. This spike can be fatal to your electronics, causing an arc that can overheat electrical components. Even small surges can eventually play havoc with your television, computers and stereo system, which is why experts recommend hooking this equipment up to surge protectors.

Your insurance company expects you to protect your electrical devices from harm by unplugging them in the event of a power outage and not plugging them in until power has been restored. Power surges that damage your equipment will typically not be covered by your insurance unless they result from a peril covered by your policy such as a fire or a windstorm. You may, however, be able to get an endorsement to your policy that will specifically cover any power surge. Speak to your agent for guidance.