Does Home Insurance Cover Power Surge Damage?

Short answer: sometimes. Whether a power surge is covered depends on your insurer, your policy and how the damage happened. We’re electricians, not insurance advisers, so treat this as a list of things to check rather than advice on your cover.

Why it isn’t a simple yes or no

Home and contents policies handle storm and lightning damage in different ways. A few things commonly make the difference:

• How the damage happened. Some policies treat a lightning strike differently from a power surge that arrived along the power lines.
• Exclusions and limits. Some policies exclude or cap electrical damage, or only cover it under particular sections.
• Which policy applies. Fixed and wired-in items like an air conditioner or solar system may fall under home insurance, while plug-in items like a TV or computer fall under contents, and the two can have different terms.
• Your excess. If the excess is $500 and the fault costs $400 to fix, there’s nothing to claim.
• Age of the item. Some policies pay a depreciated value rather than the cost of a new one.

What to check in your policy

Open your Product Disclosure Statement, or ask your insurer directly, and look for:

1. Whether “power surge” or “electrical damage” is mentioned by name
2. Whether lightning and storm damage to appliances are covered
3. What your excess is, and whether it’s per claim
4. Whether hardwired and fixed items like air conditioners and solar inverters are covered under building or contents
5. Any conditions, for example needing proof the damage came from the storm

If you think a surge got your gear

1. Switch off at the board if there’s a burning smell, scorch marks or anything that looks unsafe, and call a licensed electrician.
2. Don’t throw anything out yet. Your insurer may want to see it or get a repair report.
3. Take photos of the damage, model numbers and the date.
4. Note the storm. The date and time, and whether neighbours had problems too, can help.
5. Get a report. A licensed electrician or the appliance’s repairer can often confirm what failed.
6. Contact your insurer promptly. Claim deadlines apply.

Why prevention usually wins

Even a covered claim is a hassle: the excess, the wait, and the replacement of things that may have been irreplaceable, like data. And gradual damage from repeated smaller spikes may never be provable at all.

A surge protection device at your switchboard stops the spike before it reaches your appliances. It’s also on record: it’s certified when it’s fitted, so you’ve got paperwork to show. It won’t replace insurance. It reduces the chance you’ll need it.

If you want a look at what’s at risk in your home and a fixed price to protect it, the 30-second check is free.