Electrical Surge: How Much Cover Can Your Insurance Policy Accommodate
If you live in Nigeria, you are most likely to be affected by power shortages multiple times a day (Lol), while power surges occur several times but are usually too minor to notice. When a sudden spike in electricity happens (a power surge), it can damage or destroy appliances and gadgets in the blink of an eye. And with more electronics in our homes than ever, that can be costly.
Power surges have been responsible for hundreds of billions of naira of property damage every year. Surges can instantly overload and shut out the circuitry of home electronics. Over time, surges can also cause cumulative damage to your property, incrementally reducing the durability of our appliances and gadgets or anything plugged into the wall.
The personal property coverage in a home insurance policy may help accommodate the damaged or destroyed appliances and electronics, depending on how the electrical surge occurred.
What Are the Sources of Electrical Surges?
There are several sources of power surges. They can originate from any of the distribution companies – Ikeja Electric, Abuja Electricity Distribution Company etc. However, a common cause of power surges, especially the most powerful surges are:
- Lightning strikes can cause a power surge, along with other damage, if they hit your home or through the power lines.
- Another source is the Switching surges, caused by sudden changes in electrical loads, either within your home or business premises due to the kind of operation you are involved in.
How Electrical Damages Can Be Covered Under Personal Belongings
A lot of homeowners’ insurance policies include some protection against sudden, accidental damage from man-made electricity while some insurance companies do not offer coverage for certain components that make electronics works – tubes, transistors etc. Some insurers also cover damages arising from lightning.
The personal property section is important as it may help replace your belongings if they are damaged by a covered peril up to a limit in your policy. However, coverage can vary depending on your individual or business policy, so it is important to read your insurance policy carefully or ask your insurance broker/agent.
For example, if a laptop overheats and dies due to a power surge, your home insurance may help cover that loss, the policy may also provide protection against damages to electronic parts of your appliances.
Ways to Protect Your Homes and Businesses from Power Surges
It is important to have a proper inventory of your personal and business items in case you ever need to make a claim. A detailed inventory can help you decide whether you have the right coverage or not. It can also make it easier to make a claim if you ever need to.
Finally, there are several ways you can proactively protect your home and business:
- Utilize surge protectors to protect home and business equipment and appliances, including printers, computers, appliances, TV, Laptop and replace the protectors regularly.
- Use a primary service panel suppressor. Heavy-duty suppressors are manufactured to handle surges as they enter your building to mitigate the impact on equipment and surge protectors.
- Purchase additional property insurance that covers equipment breakdown and will repair or replace the damaged equipment.
As a home or business owner, you can’t control when disaster strikes. However, you can take preventative measures to prepare for severe future circumstances. We suggest having your insurance policy reviewed regularly. If your home or business has been affected and you are having a hard time being properly compensated from your insurance company, call YOA Insurance Brokers Limited today. We are just a chat away (08072659474) on WhatsApp
The author would like to thank and acknowledge the contributions made by Adebiyi Muhammed, a Team Lead, Schemes and Retail with YOA Insurance Brokers Limited in their Lagos office. He can be reached at firstname.lastname@example.org.