Winter Storms and Power Outages

As the blizzard of 2015 starts to hit hard across the Northeast, with several feet of snow, intense cold and high winds expected, utility companies are warning of widespread and potentially  lengthy power outages across the region.

In New Jersey, utility companies say it’s the high winds, with gusts of up to 65 mph, rather than the accumulation of snow, that are likely to bring down trees or tree limbs and cause outages.

Consolidated Edison inc. which supplies electricity to over 3 million customers in New York City and Westchester county, told the WSJ that the light and fluffy snow expected in this blizzard should limit the number of power outages, but elevated power lines could come down if hit by trees.

In Connecticut, Governor Dannel P. Malloy said the state’s two major electric utilities are preparing for 120,000 outages statewide, the Hartford Courant reports. The governor has issued a travel ban for the entire state beginning 9pm Monday.

And in Massachusetts, where thousands of utility company workers have been mobilized, there are also concerns that high winds could delay repairs, with one utility spokesman telling the Boston Globe that this will likely be a multi-day restoration event.

In the event you lose power, you may be wondering about insurance coverage. Here are some points to keep in mind:

–If the power outage lasts for more than a day and you have perishable foods in your refrigerator or freezer, the good news is that food spoilage from the event may be covered under your standard homeowners insurance policy, up to a specified limit, usually anywhere from $500 to several thousand dollars. Typically, the policy deductible does apply to this coverage, however.

–A home would need to be severely damaged by an insured disaster for additional living expenses (ALE) coverage to apply under a standard homeowners policy. In other words, if there is no physical damage to your property but you can’t live at home because of the power outage, in general policies would not pay for you to live elsewhere.

–For businesses, basic property insurance does not cover loss due to power interruption or failure of power to the  insured premises if the failure occurs away from the premises. So, if heavy snow topples a power line that is not on an insured’s premises, such as a grocery store, spoilage of food due to the outage would not be covered. If the power outage resulted in a disaster such as a fire at the insured premises, that would be covered.

The Insurance Information Institute (I.I.I.)  reviews what winter storm damages are  covered by your home and car  insurance here. Check out more information on business insurance from the I.I.I. here.

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