Your home relies on electricity to power appliances, electronics, HVAC systems, and lighting. Because of this, many homeowners want improved efficiency and safer systems, which often means upgrading electrical components. Upgrades can include anything from replacing outdated outlets to installing a completely new electrical system. Since electricity is such an important part of the home, it may seem logical to assume that home insurance will cover these improvements. However, the truth is more complicated. The team at Abney Insurance explains what homeowners in Winter Garden, FL, need to know.
Does Home Insurance Cover Electrical Upgrades in Winter Garden, FL?
The reason for the upgrade determines whether home insurance will help. Home insurance does not cover electrical upgrades needed due to wear and tear, aging components, poor maintenance, or general deterioration. Unfortunately, these are the most common reasons homeowners update their electrical systems. Home insurance also does not cover upgrades made for elective purposes, such as finishing a basement or installing a charging station for an electric vehicle.
Home insurance is more likely to help when electrical repairs or replacements are needed because of a covered event. Examples include lightning strikes, fires, hail, downed power lines, exploding transformers, fallen trees, and wind-driven debris. In some cases, coverage may also extend to upgrades that are required by updated building codes. To qualify, your policy must include ordinance or law coverage. Additionally, some carriers offer mechanical breakdown or equipment breakdown coverage, which provides protection for sudden system failures. Gradual breakdowns are not covered.
Will Anything Cover Electrical Upgrades in Winter Garden, FL?
A home warranty may cover electrical upgrades related to wear and tear. However, warranties often include limitations, exclusions, and qualification requirements. If you already have a home warranty, it is a good idea to speak with a representative to understand what may be covered. Without a warranty, homeowners are generally responsible for paying for these upgrades out of pocket.
Home insurance protects your home from sudden damage, not from aging systems. Still, there may be ways to secure coverage for certain upgrades when they relate to a covered event. Visit Abney Insurance so our team can review your policy and explore options from our partner carriers. Contact us today for more information.
