Whether a power outage during hurricane season has already disrupted your home or you’re adding a generator to prepare for future storms, a backup power source can play a major role in home safety and comfort.
A new generator can help provide reliable power during storms, prevent food spoilage, reduce the risk of frozen or burst pipes, and keep essential systems running. But before purchasing or installing a whole-house generator, it’s important to understand how standard homeowners insurance treats generators—and when insurance policies do not cover generator-related damage.
Table of Contents:
1. How homeowners insurance treats generators
2. Common events that may be covered
3. Typical exclusions to be aware of
4. Optional coverage and endorsements
5. Protecting your generator investment
6. Common homeowner FAQs
At a glance:
Generators may be covered under your home insurance policy, but coverage typically only applies when they're damaged by covered perils—unexpected events your policy is designed to protect against such as fire, severe weather, and theft. It is important to note that not all generator damage is covered, and understanding how insurance providers categorize generators may help clarify the level of protection you have.
Most home insurance policies cover generators may be covered by the following categories, depending on the type:
Be sure you understand which category your generator falls under and verify with your insurance agent that it's properly protected.
When generators are damaged by covered perils, homeowners insurance typically steps in to repair or replace the damaged unit, minus the deductible.
While home insurance may cover generators damaged by covered perils, there are several common coverage exclusions. Understanding what home insurance doesn’t cover helps avoid claim denials and plan for additional protection. Exclusions include:
Exclusions and limitations aren't identical across all insurance companies, which is why we recommend you review your policy carefully and discuss any coverage questions with your insurance agent.
If, after reviewing your policy or while evaluating home insurance quotes, you find that the standard coverage doesn’t provide enough protection for your needs, you may have the option to add endorsements to fill the gaps.
Standard personal property coverage typically includes sub-limits for certain items, which means your policy may only pay up to a specific amount for portable generators—even if you own a more expensive unit. Additionally, many standard policies only cover personal property at actual cash value rather than replacement cost, though you can often add replacement cost coverage through an endorsement.
To ensure adequate protection for your portable generator, consider adding scheduled personal property coverage to your policy. This added coverage can help cover the repair or replacement cost of your generator, minus your deductible, without the standard sub-limits.
To ensure adequate protection for a valuable portable generator, consider scheduled personal property coverage. This extended coverage can pay the full cost to repair or replace your generator, minus your deductible, without the restrictions of standard sub-limits.
Typical home insurance policies don’t cover mechanical or electrical failure that isn't caused by a covered peril. Equipment breakdown coverage is an endorsement that fills this gap, protecting against:
Generators provide peace of mind when your power goes out, keeping your home comfortable, not to mention safe, in the event a grid goes down. Proper insurance coverage ensures you're not left with high out-of-pocket costs, should your generator be damaged or your portable generator stolen.
Don't assume your generator is fully protected simply because you have a home insurance policy. Set aside time to carefully review your policy, understand what's covered and what's excluded, and supplement your policy with additional endorsements to fill any coverage gaps.
Your independent insurance agent can help you understand your existing protection and recommend additional coverage if needed. This ensures you are covered before the damage or loss occurs.
Whether you’re purchasing a home, installing a generator, or reviewing coverage on an existing policy, it’s important to find out if your home is protected before a loss occurs. Openly’s enhanced HO-5 policy may help protect your generator in your home against a wide range of risks, with optional equipment breakdown coverage for added peace of mind.
Visit Openly.com to learn more or find an independent insurance agent to look into premium, straightforward protection for your backup power generator.
We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions, exclusions and coverage details. Openly may provide links that lead to an external website that may promote goods and services that Openly does not endorse. We are not responsible for the content, claims, or representations made on the linked website. Please review their terms and policies before engaging with any offerings.