Does Homeowners Insurance Cover Spoiled Food After a Power Outage?
Consider this: You were without power for a few days. Perhaps a blizzard or strong winds knocked out power, or you heard the transformer blow and saw everything go dark in your house. The power company eventually restored your power, but most of the food in your refrigerator and freezer spoiled.
You're now wondering if you can be reimbursed for some of the spoiled food. Learn how your homeowners insurance policy may be able to reimburse you for food spoilage and whether a claim will cause your premiums to rise.
Does Homeowners Insurance Cover Spoiled Food?
Standard homeowners insurance policies typically include $500 in food-loss coverage in the event of a power outage.
However, before filing a home insurance claim, consider your deductibles—the amount of money you are responsible for paying when seeking insurance coverage for medical care or a disaster. If your food loss totals $500 and your deductible is also $500, your home insurance will pay nothing. Even if your deductible is $250, homeowners insurance only covers up to the food spoilage limit in your policy.
Because your deductible must be greater than your loss but less than your policy limits in order to be reimbursed, it makes sense for the difference to be large enough to justify filing a claim.
- Some insurers offer a separate food loss deductible for an additional premium, so ask your agent if this is something you'd like to add to your policy.
When Am I Covered for Food Spoilage Claims?
It's critical to discuss the specifics of your home insurance policy with an agent so you know what situations are covered. Some insurers will not cover food loss caused by a widespread power outage if the cause of the power outage is located off-site. However, if your insurer does, the cause of the power outage must be a covered risk under your policy.
Food spoilage caused by power outages may be covered by homeowners insurance.
- Trees that have fallen on your property
- Hurricanes and storms are given names.
- Your property is struck by lightning.
- Water damage caused by a covered storm
Some common scenarios in which you may not be covered for food spoilage include power outages caused by:
- Blackouts in the neighborhood caused by a power line problem
- Nonpayment of electric bills or electric company service
- Failure of your refrigerator due to wear and tear or mechanical failure
- Floods (unless you have flood insurance)
Can You Get Extra Coverage for Power Outages?
Adding a food-spoilage endorsement to your homeowners insurance policy usually provides coverage for spoiled food regardless of the cause of the power outage. Adding equipment-breakdown coverage may also cover food spoilage caused by a mechanical or electrical failure in your refrigerator's components. American Family Insurance offers equipment breakdown coverage beginning at $20 per year, but you must pay a deductible to make a claim for spoiled food, as with other insurers.
Home improvement store warranties may also cover food spoilage if your refrigerator fails due to component failure or other causes other than a power outage. For example, Home Depot's Extended Service plan covers up to $300 in food spoilage if a covered appliance fails mechanically.
However, in all cases, carefully read the warranty's terms and conditions to determine whether secondary damage, such as spoiled food, is covered. If not, the company may offer a secondary damage coverage add-on.
Will a Food Spoilage Claim Affect My Homeowners Insurance Premiums?
Filing a home insurance claim for spoiled food may cost you more money because insurers may view you as more likely to file future claims. Insurance companies may raise your premium by a double-digit percentage point to compensate for the increased risk, depending on the type of claim and the number of claims you've previously filed.
People who have filed multiple claims in recent years are more likely to face higher rates. Insurers may be wary of a homeowner if the claim is the second of its kind in the last decade, even if the first claim was filed by the previous owner. It might be better to think of your home insurance policy as covering major losses rather than minor claims.