When you think about protecting your home, you probably picture storms, fire, or burglary. But what about electrical problems? These issues can quietly damage your house, create safety risks, and raise questions about what your insurance actually covers. At Illinois Insurance Center, we talk to a lot of homeowners across Illinois about electrical problems and home insurance, and it’s a topic that deserves clear answers.
What Does Home Insurance Really Cover When It Comes to Electrical Problems?
Let’s keep it simple. Your homeowners insurance can cover damage to your electrical system if the damage is sudden and accidental. That includes things like:
- ✅ A lightning strike frying your circuit board.
- ✅ A fire caused by a faulty outlet.
- ✅ Storm damage that messes up your wiring.
These events are called “covered perils.” But your insurance won’t pay for damage from regular wear and tear. If your system is outdated or wasn’t installed properly, that’s on you.
Does Your Policy Cover All Types of Wiring?
That depends on your home. Some older homes in places like Chicago or Joliet might still have knob-and-tube or aluminum wiring. These systems are outdated and risky. Most insurance companies either won’t cover them or will limit your coverage.
So, if you’ve got an older house, get your wiring inspected. If needed, update it. Yes, it’s an investment—but it could save your claim from getting denied down the road.
Are Appliances and Electronics Covered Too?
Great question. If your TV, fridge, or computer gets zapped because of a covered event, like a lightning strike, then yes—your personal property coverage may pay to replace them.
But there are a few catches:
- ✅ You’ll have a coverage limit for electronics, often capped at a percentage of your overall home value.
- ✅ Certain high-value items may need to be listed separately in your policy.
- ✅ Your deductible applies before coverage kicks in.
So if you’re storing high-end sound equipment or running a home office in Naperville, talk to us about making sure your stuff is protected.
What If the Electrical System Starts a Fire?
This is where electrical problems and home insurance can get tricky. If your home has up-to-code wiring and it fails for no obvious reason, the resulting fire and damage will likely be covered.
But if your system is known to be faulty or you’ve ignored electrical issues in the past, the insurance company may say you didn’t keep up with maintenance. That can cause a denied claim.
We’ll help you look over your policy and home inspection reports so you know exactly what shape your coverage is in. That’s part of the service you get when working with Illinois Insurance Center.
What Can You Do to Make Sure You Stay Covered?
You don’t have to be an electrician to keep your coverage in good shape. Here’s what we recommend:
- ✅ Schedule regular inspections, especially if your home is more than 30 years old. Licensed electricians can spot risks before they become disasters.
- ✅ Don’t DIY electrical work unless you’re certified. It might look like you saved money upfront, but it could cost you more in the long run.
- ✅ Keep your records. When you update your panel, rewire a room, or upgrade an outlet, hold onto receipts and reports. We can use these documents when helping you file a claim.
We help clients from Rockford to Aurora make sure they have a homeowners insurance policy that works for their home’s age and condition.
How Does Business Insurance Handle Electrical Damage?
For small business owners, the same basic rules apply. Our business insurance policies cover damage caused by sudden electrical failures or fires—as long as maintenance is up to date.
If you’re a contractor, owning proper contractor insurance is key. Faulty wiring during a job can lead to claims. We’ll walk you through how to protect your work and your tools.
Should I Consider More Coverage Than the Minimum?
Honestly? Yes. The basic policy often doesn’t go far enough.
- ✅ Think about adding equipment breakdown coverage. This pays for electrical damage to appliances from mechanical failure, not just disasters.
- ✅ Talk to us about adding flood or water backup coverage. Water and electricity don’t mix, and this combo can turn into a nightmare fast.
We can help you build a custom plan, whether you own a home in Aurora or run a shop in Chicago.
Do You Need Separate Insurance for Electrical Contractors?
If you’re an electrician or run a contracting business, you absolutely do. Our contractor insurance options protect your gear, your team, and your clients. One accident could derail your work without the right protection in place. We also recommend pairing this with commercial auto insurance if you’re moving equipment from site to site.
Can Life Insurance Help in Case of Electrical Fires?
That’s not a question we get often, but it’s a good one. While life insurance doesn’t cover property damage, it does offer peace of mind for your family. If something tragic happens, the policy can help with bills and future needs. If you’re updating your home and thinking about long-term planning, we can discuss your life insurance needs too.
Frequently Asked Questions
1. Will insurance cover a power surge that damages my electronics? Yes, if the surge is caused by a covered event like lightning. You may need extra coverage for expensive devices.
2. What electrical systems are too old to insure? Systems like knob-and-tube or aluminum wiring are often not covered due to fire risks.
3. Can I file a claim if my DIY wiring job fails? Probably not. Insurance companies may view DIY electrical work as negligence.
4. Is maintenance really that important to keep my coverage? Absolutely. Ignoring known issues can get your claim denied.
5. What’s a “covered peril” in terms of electrical problems? It means the cause of damage was sudden and accidental—like fire or lightning.
6. Should renters worry about electrical problems too? Yes. Renters insurance covers personal property but not the building. Talk to your landlord about electrical safety.
7. Does insurance cover spoiled food from electrical failure? Some policies do. We can add that kind of coverage if needed.
8. What should I upgrade first in an older home? Start with the electrical panel and main service lines. Those matter most for safety and insurance.
9. Are outdoor outlets and wiring covered? If they’re permanently installed and the damage is caused by a covered event, yes.
10. Can Illinois Insurance Center help me compare policies? Definitely. We’ll look at your needs, your home’s setup, and your budget to match you with the right protection.
Final Thoughts on Electrical Problems and Home Insurance
Electrical issues may seem like small stuff until they cause major damage. That’s why it helps to understand how electrical problems and home insurance connect. From lightning strikes to faulty panels, having the right coverage could make the difference between a full recovery or a huge loss.
At Illinois Insurance Center, we know every home is different. Whether you need to upgrade your policy, insure an older home, or protect your business tools, we’re here to walk you through it all.
Give us a call at (708) 524-4900 or reach out online to speak with a local agent. Let’s make sure your home is protected from the inside out.
