Q:

What are some different electrical insurance policies?

A:

Quick Answer

Some policies can include electrical insurance in homeowners insurance to cover both buildings as well as their contents, as About.com explains. While electrical insurance is not a part of traditional business insurance policies, insurance companies can add this type of coverage for both property and assets as well as to reimburse businesses for lost revenue due to being closed during power outages.

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Full Answer

The building coverage aspect of homeowners insurance covers the electrical system itself, and it reimburses policyholders for loss of property due to electrical problems, according to About.com. Policyholders who lose their homes and have building replacement coverage can have their homes repaired or rebuilt if they are lost due to electrical problems. These policies also cover lodging, food and transportation for people who cannot live in their houses until they are repaired. Homeowners content replacement coverage includes the replacement of items such as portable window air conditioners, microwaves and dishwashers if the damage results from electrical problems.

While most commercial policies do not pay business owners for damages caused by electricity sources outside the business, such as transformers and power lines, owners can purchase additional coverage, as About.com details. Direct damage coverage pays for property damaged by the power supply as long as a business owner specifically named that property in the extended policy. Business owners who have policies that include business income or extra expense coverage can expand that coverage to cover times the business has to close due an interruption of electrical service.

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