Power outages happen. When storms appear or severe weather hits, it’s more than possible that we’ll lose our power. When that occurs, all sorts of damage can happen. If you’re a homeowner, things you take for granted stop working – like your refrigerator, your computer, your HVAC system, and much more.
Power failures can come at just about any time of the year. They can arrive when you expect they might, like during a thunderstorm, or when you least expect them. That’s why it’s always important to be prepared because you just might be surprised by an outage, which is no fun and will have you scrambling to save things in your home.
Businesses also dread power outages unless they are truly prepared. A power failure that’s not bolstered by back-up power, like a generator, could result in loss of data and all sorts of other important information a business values, as well as the loss of physical items and property.
Did you also know that after power outages, insurance claims increase exponentially? It’s true! When a home’s or business’s primary power goes out, damage can occur, especially if the reason for the outage is a severe storm. That’s why many insurance companies offer their clients a “loss mitigation credit”, which prompts the customer to take steps to avert losses and subsequent insurance claims. Installing back-up power is one of those mitigation steps that could save you both money and plenty of heartache.
What is loss mitigation?
You likely already mitigate losses to your property by doing simple things like installing a home security system or by using smoke detectors throughout your house. A security system keeps intruders away and prevents loss of items or damage to property. Smoke detectors can keep your house from burning down if a fire starts indoors or outside.
Similarly, purchasing a back-up generator can help to storm-proof your property by providing power during an outage. As a result, it helps to reduce claims you may need to file as a result of damage done by the storm. Some insurance companies refer to this as a loss mitigation credit.
- An ice storm hits and your power goes out. It’s freezing outside and it won’t take long for your home to become quite cold. Pipes can freeze quickly, burst, and lead to water damage both inside and outside your home. Generators can help minimize the risk of frozen pipes and keep your house safe from harm.
- There’s a severe thunderstorm and the power goes out. It stays out for a long time, which means the sump pump in your basement is no longer operating. As a result, water gets backed up and gathers in your basement, where it can not only destroy items stored there but also do damage to your home’s foundation. With back-up power that kicks on immediately, the sump pump keeps doing its job and water from the storm doesn’t wreak havoc in your home.
- A thunderstorm, excessive wind, or a snowstorm cause you to lose power. Hours pass and it’s still not back on. Remember that refrigerator full of food you bought for this weekend’s big gathering? It’s a goner. However, if you have a back-up generator, you could save the food…and the money it would cost to buy it again.
Mitigation also involves doing what you must to keep damage from happening again after you’ve already filed a claim. As a homeowner, it’s your duty to mitigate the risk of further losses. If you don’t take the proper steps, your property insurance carrier may not cover any secondary losses.
Remember, it’s not uncommon for insurance policies to include reimbursement language for reasonable mitigation measures. Check your insurance policy to see what it covers and you might be pleasantly surprised by the benefits you’ll reap by installing back-up power in your home.
We’ve dealt with everything from residential to industrial. See which industries we’ve served in more detail here: Industries Served.