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The Utility Co. “Intentional” Electrical Power Outage to your Home or Business have some variance of coverage(s) and or exclusions(s)

First, the Utility Co. voluntary shut off of electricity is not considered a “Covered Cause of Loss”. Therefore, most coverages are not even considered because there is not a “Covered Cause of Loss”. i.e. like Fire.

Second, Utility Services from lack of power, failure of power, are excluded from policies.

The Home Policies have some Broaden Coverage & Exclusions:

• Home Policy- Refrigerated Property: This is usually in most home policies. The coverage is broadened “If Power Interruption Occurs Off the Residence Premises” . There are financial indemnity limits of $500 to $5,000 with a lower $500 deductible.
• Home Policy- Additional Living Expenses: Excluded. There are NO coverages for temporary hotel expenses.

The Commercial Property & Loss Income/Extra Expense, Spoilage & Civil Authority Coverages are Not applicable with intentional Utility Co’s decision to shut off services. These coverages are applied with  a “Covered Cause of loss”.

• Commercial Policy-Spoilage: Power Outage eventually excludes “Intentional Decision of an Electrical Utility Co. (i.e. PG & E)

• Civil Authority: For Business Income: There is no Coverage. There must be a covered cause to activate coverage. Also, the Utility Co. does not meet the definition of Governmental Authority.

On behalf of the Claims Department & Marketing VP Dirk Seltzer.