What If a Power Surge Damages My Electronics?

Article summary

• What to do first: Unplug affected devices when they are safe, avoid anything hot, smoking or sparking and look for signs of electrical damage.
• What may be covered: Homeowners or renters insurance may help with electronics and appliances damaged by a covered power surge, depending on the cause and policy terms.
• What may not be covered: Damage tied to old or faulty wiring, overloaded circuits, utility work or excluded electronic components may not qualify.
• Why documentation matters: Photos, videos, model numbers, receipts and notes about what happened can help support a claim.
• How to reduce future risk: Surge protectors, whole-home protection and unplugging sensitive electronics before storms may lower the chance of damage.

Quick answer: Homeowners or renters insurance may cover electronics and appliances damaged by a power surge when the surge comes from a covered event, such as lightning. Coverage depends on the cause, your policy, deductible, limits and exclusions.

You’re hunkering down and watching TV during a thunderstorm when the power flickers. The lights come back on a few seconds later, but the TV doesn't, and there’s a faint burnt smell coming from the outlet.

A power surge is a sudden spike in voltage that moves through your outlets and wiring and can impact anything plugged into them. A power surge frying electronics can happen instantly or slowly from wear over the years.

Whether your insurance covers the damage largely depends on what caused the surge. Here’s what to do next. 

Does homeowners insurance cover power surges?

It depends on what caused the surge. Lightning damage is one of the more common sources of homeowner claims, and some strikes damage electronics and appliances. If a lightning strike causes a surge that damages your devices, your personal property coverage may help pay to repair or replace it, minus your deductible.

However, damage to things built into your home like wiring, your electrical panel, or an HVAC system may be covered under your policy’s dwelling coverage instead.

Renters insurance generally works the same way for your belongings, like a TV or other appliances. But your landlord is usually responsible for the building’s wiring and fixtures.

Things get less certain if the surge starts somewhere else. Power surges from old or faulty wiring and overloaded circuits may be excluded from coverage. And surges caused by utility work often depend on your policy. Some policies also exclude the electronic components inside a device, even if the surge itself was a covered cause.

If you aren’t sure, check your policy documents or contact your agent.

What to document if you need to submit a claim

Generally, the more detail you have, the smoother the claim tends to go.

• Photographs or video of damaged items, including close-ups of any burn marks, melted pieces or plugs, frayed wires and scorched outlets.
• The make, model, serial number and rough age of the appliance.
• Any receipts or manuals, if you still have them.
• A short note on what the appliance or electronic did during the surge: did it spark, smoke or just stop working? Did you hear any noises?

If you think the surge came from outside your home, report it to your power company. Some reimburse for damaged equipment if it was caused by them; documentation and prompt reporting help. 

Quick coverage chart: When could insurance cover power surge damage?

Important insurance policy exclusions to understand

Although these losses can be significant, many policies exclude:

• Data, personal files, documents and software lost from a surge-damaged device, including recovery costs. Regularly back up important files and photos to the cloud or to an off-site physical drive.
• Digital currency and stored value, including stored-value cards, smart cards, electronic or virtual currency and cryptocurrency. Specialty carriers may offer stand-alone coverage for both digital assets and data-related losses.
• Satellite dishes and related systems are often excluded.
• Damage caused by a loss of utility service, such as an interruption or outage at the residence, is also commonly excluded.

What causes a power surge?

While big events like lightning hitting a house is the cause most people think of, most surges are smaller and start closer to home.

Here are some common causes of power surges:

• Large appliances cycling on and off, like an air conditioner or refrigerator
• Too many devices drawing power from one circuit
• Old, damaged, or improperly installed wiring
• Power coming back on after an outage
• Utility work, grid switching, downed power lines or a blown transformer

Small surges can wear down the components inside a device over time, which is why sometimes electronics fail with no obvious cause.

What to do after a power surge

Always keep safety in mind first, so unplug any devices you think were affected. Leaving them connected to the power could increase the risk of more damage or fire.

Don’t touch anything that is hot, smoking or sparking, and stay away from any exposed wiring. Treat it as a live wire situation.

Once things are unplugged, look for signs of damage:

• Burn or scorch marks on outlets and plugs
• Melted plugs or frayed cords
• A burning smell around an outlet or appliance
• A humming sound coming from an outlet
• Lights that continue to dim or flicker after the surge

How to lower the risk of surge damage

There are some steps you can take to help reduce the risk of a power surge causing damage.

Consider using surge protectors instead of plain power strips and look at the joule rating when you buy one. A higher rating absorbs more before it stops working, which may work for more expensive or important appliances. If you’re already using them, check to ensure they’re still offering protection or swap them out every few years.

Electricians can also install a whole-home surge protector, which may cut down on surges coming from outside. And before any storm, unplugging computers and other electronics adds another layer of protection.

A power surge is usually out of your control, but you can be proactive about what happens next. Unplug what you can, document the damage, check your coverage, and take a few steps to help reduce your risk in the future.