Insurance coverage of lightning and power surges
Posted: Mon Feb 28, 2005 4:11 pm
From experience I could have 10 different customers with 10 different agents for the exact same insurance company with the same coverage and receive 10 different ways to handle a claim. If you suffer damage and intend to use your home owners insurance policy here are some tips.
What the service company can say and not say
With lightning the service company in most cases must provide a separate document or note on your service invoice that the failure was due to lightning or power surge for you to be reimbursed. In an honest world that means the kind of failure you had must be historically related to lightning damage and not a failure due to normal use. That typically means multiple parts or specific parts have been replaced or circuit traces have been damaged making it clear that lightning or a power surge is the cause of the failure.
Your service company does not have the final word on whether the failure is related to lightning or a power surge and can only provide their professional opinion of the cause. If they can provide confirmation of this via the evidence provided by the product that is great but this is not always the case. In this instance the servicer will state the failure is possibly due to lightning or power surge leaving the brunt of the evidence between you and your insurance company. Legally the servicer was not on the site during the conditions that caused the failure leaving the weight of the claim on your shoulders as the person most likely to be the first to know that something happened and possibly why.
All of this said it is quite common for servicers to simply total out products at either the owners request or due to their own lack of integrity. It is recommended you contact a servicer that will really do the work and handle this correctly. It is a direct reflection of their honesty and integrity. A servicer that would simply total out your products without a real inspection and effort to repair the item is not recommended since you will also not know if they are telling you the truth about anything they will repair for you now or in the future.
What needs to be looked at
If the damaged product can be replaced for less than $150 there is no need to turn it in for service. Your agent may insist none the less due to fraud concerns. If so remind your agent that most shops are going to charge a service fee of $25-50 to check out the unit and provide documentation for your claim if you decline the repair. Actual repairs will likely be between $50and $100. Usually those facts will change your agents perspective.
Speed of Service
More than likely your insurance agent will request an estimate before authorizing repairs so in turn you will demand one when that is not really necessary. In nearly all cases estimates increase repair or turn around time increasing the amount of time your are without use of the product.
Service is a flat rate business making us capable of giving you a preliminary free estimate over the phone without having seen the product providing you with a reasonable expectation of repair cost. Provided that price or range is within 60% of replacement cost and you have replacement coverage it is in your best interest and expediency to authorize that. You can also call your agent with these preliminary prices for approval.
Payment of service
For most servicers payment is due upon completion of repairs or pick up of the repaired unit. This works out fine provided you have the cash to cover this until you are reimbursed by your insurance company. For some the insurance check must come first. At minimum you are obligated to provide the dollar amount of your deductible.
Another method is to have your servicer work directly with the insurance company and in most cases the servicer then directly bills the insurance company for the balance instead relieving you of this concern or possible delays in receiving your products back. In this case the servicer and insurance company will work together to either repair or replace the product. This works out great provided you are not trying to control the outcome and simply want to get your life back to normal.
Coverage via your lightning or surge suppressor
Provided you have the right product and connected up everything correctly you should be covered. For more information check AC Surge/Lightning Suppressors.
What kind of coverage should I have?
You are looking for replacement coverage only that covers not so much the price but the capability of your product. For some products replacement cost will be less and for others it will be more than what you originally paid. Do not accept a policy that reimburses you based on the depreciated value. As with all insurance a higher deductible will yield a lower rate and resist making petty claims that only trigger an increase in your rates.
What the service company can say and not say
With lightning the service company in most cases must provide a separate document or note on your service invoice that the failure was due to lightning or power surge for you to be reimbursed. In an honest world that means the kind of failure you had must be historically related to lightning damage and not a failure due to normal use. That typically means multiple parts or specific parts have been replaced or circuit traces have been damaged making it clear that lightning or a power surge is the cause of the failure.
Your service company does not have the final word on whether the failure is related to lightning or a power surge and can only provide their professional opinion of the cause. If they can provide confirmation of this via the evidence provided by the product that is great but this is not always the case. In this instance the servicer will state the failure is possibly due to lightning or power surge leaving the brunt of the evidence between you and your insurance company. Legally the servicer was not on the site during the conditions that caused the failure leaving the weight of the claim on your shoulders as the person most likely to be the first to know that something happened and possibly why.
All of this said it is quite common for servicers to simply total out products at either the owners request or due to their own lack of integrity. It is recommended you contact a servicer that will really do the work and handle this correctly. It is a direct reflection of their honesty and integrity. A servicer that would simply total out your products without a real inspection and effort to repair the item is not recommended since you will also not know if they are telling you the truth about anything they will repair for you now or in the future.
What needs to be looked at
If the damaged product can be replaced for less than $150 there is no need to turn it in for service. Your agent may insist none the less due to fraud concerns. If so remind your agent that most shops are going to charge a service fee of $25-50 to check out the unit and provide documentation for your claim if you decline the repair. Actual repairs will likely be between $50and $100. Usually those facts will change your agents perspective.
Speed of Service
More than likely your insurance agent will request an estimate before authorizing repairs so in turn you will demand one when that is not really necessary. In nearly all cases estimates increase repair or turn around time increasing the amount of time your are without use of the product.
Service is a flat rate business making us capable of giving you a preliminary free estimate over the phone without having seen the product providing you with a reasonable expectation of repair cost. Provided that price or range is within 60% of replacement cost and you have replacement coverage it is in your best interest and expediency to authorize that. You can also call your agent with these preliminary prices for approval.
Payment of service
For most servicers payment is due upon completion of repairs or pick up of the repaired unit. This works out fine provided you have the cash to cover this until you are reimbursed by your insurance company. For some the insurance check must come first. At minimum you are obligated to provide the dollar amount of your deductible.
Another method is to have your servicer work directly with the insurance company and in most cases the servicer then directly bills the insurance company for the balance instead relieving you of this concern or possible delays in receiving your products back. In this case the servicer and insurance company will work together to either repair or replace the product. This works out great provided you are not trying to control the outcome and simply want to get your life back to normal.
Coverage via your lightning or surge suppressor
Provided you have the right product and connected up everything correctly you should be covered. For more information check AC Surge/Lightning Suppressors.
What kind of coverage should I have?
You are looking for replacement coverage only that covers not so much the price but the capability of your product. For some products replacement cost will be less and for others it will be more than what you originally paid. Do not accept a policy that reimburses you based on the depreciated value. As with all insurance a higher deductible will yield a lower rate and resist making petty claims that only trigger an increase in your rates.