Electrical Equipment

Adjusters should understand why high voltage surge losses are so prevalent and what all could be impacted.

Damages to appliances and consumer electronics areoften caused by high voltage surge, and adjusters should know how surge losses to high and low voltage equipment may impact potential settlements.

Understanding these systems and the perils that may impact them will help adjusters settle these claims more confidently and accurately.

We explain what each component does, how often it’s likely to be in claims without showing damage at the time of assessment, and the average cost to replace it.

The insured for the claim in this case study was only guessing that the damage to a hot tub was related to a surge.

Adjusters find them helpful to verify that any necessary replacements and repairs are of Like Kind and Quality (LKQ) and that the settlement is in line with market values for the loss and location.

Insurance professionals and policyholders have likely noticed an increase in technology advancements, the number of people working remotely, and the amount of extreme weather that took place in 2020 and 2021.

It’s critical to understand what different types of surge protectors exist – and why they won’t prevent all electrical surges.

Lightning can impact whatever is in its path, from appliances to electronics or an entire electrical panel. And each item could wind up in an insurance claim.

Unlike some other causes of loss, lightning and surges can impact a variety of items – though it may not be noticed right away.