Insurance question

An insurance policy is a contract between you and the insurance company. They will pay you what they are legally obligated to pay you under the terms of that contract and no more. The problem is that most of us do not fully understand what their insurance policies cover - or more importantly - what they do not cover. Unfortunately, most of us first learn what's not covered when we make a claim against the policy. That's why its important to review our coverage needs in advance, to make sure we obtain the appropriate coverage.

"Power surges" and lightning are two different issues. Lighting is almost always a covered peril under a homeowners policy covering a single family home. The issue in the event of lightning is whether your polcy provides replacement cost coverage, as opposed to "actual cash value", i.e. the depreciated value of your equipment. A "power surge" is when your power goes off and a surge subsequently enters your home when the power comes back on. This event is often not covered at all, even under the broadest of homeowners policies - or at best is subject to a low limit as Nicksgem10s referenced.

The best best is to specifically schedule your equipment on your policy. In most cases equipment specifically scheduled on a property "floater" or "rider" is provided "all risk" coverage and payout is based upon the "stated value" of the property as indicated in the floater. Also, specifically scheduled equipment is usually covered anywhere in the world , whereas property only generally covered under a Homeowners policy will be subject to a minimal coverage limit if it away from home.

I would certainly encourage that everyone review this issue with their agent to ensure proper coverage.

You know, I don't recall hearing of anyone on this forum that has lost an entire system to lighting or power surge. Has anyone had it happen?

Nicksgem10s, how dare you call me an attorney :). Just kidding. No, I'm not an agent, but have been in the insurance industry for about 20 years.