A Homeowner's Guide to Generator And Home Insurance
A comprehensive guide to understanding generator and home insurance. Get expert advice from the Pittsburgh Electrical Knowledge Center.
A Homeowner's Guide to Generators and Home Insurance in Pittsburgh
For homeowners in Pittsburgh and throughout Western Pennsylvania, a reliable power source is more than a convenience—it's a necessity. Our region's unpredictable weather, from heavy snowstorms in the winter to severe thunderstorms in the summer, can lead to power outages that last for hours or even days. That's why many homeowners are investing in home generators to keep their lights on, their refrigerators running, and their homes safe and comfortable during an outage. But beyond the immediate benefits, have you considered how a generator might affect your homeowner's insurance? This guide will walk you through everything you need to know about the intersection of home generators and insurance in the Pittsburgh area.
Portable vs. Standby Generators: What’s the Difference for Insurers?
When it comes to home generators, there are two main types: portable and standby. Understanding the difference is crucial, as insurance companies view them very differently.
**Portable Generators**
A portable generator is a smaller, gasoline-powered unit that you can move around. They are less expensive than standby generators and can be purchased at most home improvement stores. However, they have several drawbacks. They can only power a few essential items at once, and they require you to manually start them and run extension cords to your appliances. More importantly, they pose significant safety risks if not used properly. The exhaust from a portable generator contains carbon monoxide, a deadly gas, so they must be operated outdoors and away from windows and doors. They also present a fire hazard if refueled while hot.
From an insurance perspective, a portable generator is typically considered personal property. This means that if it is stolen or damaged, it would be covered under the personal property portion of your homeowner's insurance policy, subject to your deductible. However, because of the safety risks, a portable generator is unlikely to earn you a discount on your premium. In fact, if a portable generator causes a fire or other damage to your home, your insurance company may investigate to ensure it was being used safely and according to the manufacturer's instructions.
**Standby Generators**
A standby generator, also known as a whole-house generator, is a permanent fixture that is professionally installed outside your home and connected directly to your electrical panel. These units run on natural gas or propane and are designed to turn on automatically when the power goes out. They can power your entire home, or just essential circuits, depending on the size and model you choose. Because they are permanently installed and have a dedicated fuel source, they are much more convenient and reliable than portable generators.
Insurance companies generally view standby generators much more favorably than portable units. Because they are professionally installed and have built-in safety features, they are considered a permanent upgrade to your home, much like a new roof or a security system. As such, a standby generator is typically covered under the dwelling portion of your homeowner's insurance policy. This means that if it is damaged, your policy will cover the cost of repair or replacement, again, subject to your deductible. Furthermore, many insurance companies offer discounts for homes with standby generators, as they can help prevent common claims associated with power outages, such as frozen pipes or spoiled food.
Will a Standby Generator Increase Your Home’s Value and Lower Your Insurance Premiums?
For many Pittsburgh homeowners, especially those in areas with older infrastructure like parts of the South Hills or Squirrel Hill, a standby generator is a significant investment. A common question is whether this investment will pay off in the long run, both in terms of home value and insurance costs.
**Impact on Home Value**
The consensus among real estate experts is that a professionally installed standby generator can indeed increase your home's value. While it may not be a dollar-for-dollar return on investment, a generator is a highly desirable feature for many homebuyers, especially in a region like Western Pennsylvania with its harsh winters and frequent power outages. A standby generator provides peace of mind and a sense of security that can make your home more attractive to potential buyers. Some reports suggest that a standby generator can increase a home's value by 3-5%.
**Impact on Homeowner's Insurance Premiums**
While a standby generator can increase your home's value, its impact on your homeowner's insurance premiums is less straightforward. Some insurance companies offer discounts for homes with standby generators, typically around 5-10%. These companies view a generator as a loss mitigation device, meaning it can help prevent claims. For example, a generator can keep your sump pump running during a storm, preventing a flooded basement. It can also prevent your pipes from freezing during a winter power outage, a common problem in older Pittsburgh homes. However, not all insurance companies offer this discount, so it's important to check with your provider. Even if you don't receive a discount, the fact that you have a generator may be taken into account when your premium is calculated.
Installation, Permits, and the National Electrical Code (NEC)
Proper installation is critical for the safe and effective operation of a standby generator. This is not a DIY project. A standby generator must be installed by a qualified and licensed electrician who is familiar with local codes and regulations in Pittsburgh and Allegheny County. Here’s what you need to know about the installation process:
**Permits and Inspections**
In most municipalities in Western Pennsylvania, you will need to obtain a permit before installing a standby generator. This process typically involves submitting a plan to your local building department for review. Once the installation is complete, it will need to be inspected to ensure that it complies with all applicable codes. A qualified electrician will handle the permit and inspection process for you.
**National Electrical Code (NEC) Requirements**
The NEC provides a set of standards for the safe installation of electrical wiring and equipment. Your electrician will ensure that your generator installation meets all NEC requirements, including:
• Proper Location: The NEC has specific rules about where a generator can be located. It must be a certain distance from windows, doors, and air intakes to prevent carbon monoxide from entering your home. It also needs to be accessible for maintenance and refueling.\n• Transfer Switch: A transfer switch is a critical safety device that disconnects your home from the utility grid when your generator is operating. This prevents backfeeding, a dangerous situation where electricity from your generator can travel back through the utility lines and endanger utility workers.\n• Proper Wiring and Grounding: The NEC has detailed requirements for the wiring and grounding of a generator to prevent electrical shocks and fires.
Adhering to the NEC is not just about safety; it’s also about insurance. If your generator is not installed to code and it causes a fire or other damage, your insurance company may deny your claim.
Generator Safety and Maintenance: An Insurance Perspective
From an insurer’s point of view, a well-maintained generator is a safe generator. Regular maintenance not only ensures that your generator will work when you need it most, but it also helps prevent accidents that could lead to an insurance claim. Here are some key safety and maintenance tips:
**Safety First**
• Carbon Monoxide: As mentioned earlier, carbon monoxide poisoning is a serious risk with any generator. Never operate a portable generator indoors, in a garage, or near windows and doors. Standby generators should be installed by a professional who will ensure they are properly located and vented.\n• Electrical Hazards: Never connect a portable generator directly to your home’s wiring. This is illegal and can cause backfeeding. Always use a transfer switch. Also, be sure to use heavy-duty extension cords that are rated for the load you are running.\n• Fire Hazards: Never refuel a portable generator when it is hot. Store fuel in a well-ventilated area away from your home. Keep your standby generator clear of leaves, debris, and other flammable materials.
**Regular Maintenance**
Your generator is a complex piece of machinery that requires regular maintenance to keep it in good working order. Most manufacturers recommend a weekly self-test and an annual professional service. Regular maintenance should include:
• Changing the oil and filter\n• Checking the battery\n• Inspecting the fuel lines and connections\n• Cleaning the unit and surrounding area
Keeping a record of your maintenance activities can be helpful if you ever need to file an insurance claim.
Conclusion: A Smart Investment for Pittsburgh Homeowners
For homeowners in Pittsburgh and Western Pennsylvania, a standby generator is a smart investment that can provide peace of mind and protect your family and your home during a power outage. While the initial cost can be significant, a generator can increase your home’s value, and may even lower your homeowner’s insurance premiums. The key is to choose the right type of generator for your needs, have it professionally installed according to all applicable codes, and maintain it properly. By taking these steps, you can ensure that your generator will be a reliable source of power for years to come, and that you will be in a good position with your insurance company if you ever need to file a claim.
Choosing the Right Generator for Your Pittsburgh Home
Selecting the right generator is a significant decision. The ideal choice for your home depends on several factors, including your budget, the size of your property, and your family’s specific power needs during an outage. For homeowners in Pittsburgh’s diverse neighborhoods—from the historic homes of Shadyside to the newer constructions in Cranberry—understanding these factors is key to making a wise investment.
**Assessing Your Power Needs**
The first step is to determine how much power you actually need. Do you want to power your entire home, or just the essentials? Make a list of the appliances and systems you can’t live without during an outage:
• Essentials: Refrigerator, freezer, sump pump, furnace fan, a few lights, and outlets for charging devices.\n• Conveniences: Air conditioning, electric range, water heater, television, and additional lighting.
Each appliance has a specific wattage requirement. You can find this information on the appliance’s label or in the owner’s manual. Add up the wattage of all the items you want to power simultaneously to determine the minimum size generator you need. It’s always a good idea to add a 20-25% buffer to this number to ensure your generator can handle the initial surge of power when appliances start up.
**Sizing Your Generator**
Generators are sized in kilowatts (kW). A smaller, 7.5 kW generator might be sufficient to power the essentials in a modest-sized home. A larger, 20 kW or 22 kW generator can typically power an entire house, including central air conditioning. An experienced electrician can perform a load calculation to help you determine the precise size you need for your home in neighborhoods like Mt. Lebanon or Upper St. Clair, where larger homes are common.
**Fuel Type: Natural Gas vs. Propane**
Standby generators in our region typically run on natural gas or liquid propane (LP).
• Natural Gas: If you have natural gas service to your home, this is the most convenient and cost-effective option. You’ll have a continuous fuel supply, so you won’t have to worry about refueling.\n• Propane: If you don’t have natural gas, a propane-fueled generator is a great alternative. You’ll need a large propane tank installed on your property, which will need to be refilled periodically.
The Claims Process: What to Do When the Power Goes Out
Even with a top-of-the-line standby generator, there may be situations where you need to file a homeowner's insurance claim related to a power outage. Knowing the steps to take can make the process smoother and increase the likelihood of a successful claim. Whether you're dealing with a summer thunderstorm in the North Hills or a winter ice storm in the Laurel Highlands, being prepared is your best defense.
**Immediate Steps After an Outage**
• Assess the Situation: Once your generator kicks in, take a moment to check on your home. Is the heat working? Is the sump pump running? Are there any signs of damage from the storm that caused the outage?\n• Document Everything: Documentation is your best friend when it comes to insurance claims. Use your smartphone to take pictures and videos of any damage. If your basement has flooded because the sump pump failed before the generator could take over, document the extent of the water damage. If you have a freezer full of spoiled food, take pictures before you throw anything away.\n• Keep a Log: Note the date and time the power went out and when your generator started. Keep a running log of any issues you encounter and any steps you take to mitigate damage.
**Filing a Claim for Spoiled Food**
Many homeowner's insurance policies provide coverage for food spoilage due to a power outage, but there are often limits. A typical policy might cover up to $500 in spoiled food, but this can vary. When filing a claim, you'll likely need to provide a list of the items you lost and their estimated value. This is where your photos will come in handy. Some insurance companies may not require you to pay a deductible for a food spoilage claim, but you should always check your policy to be sure.
**Filing a Claim for Other Damages**
If a power outage leads to more significant damage, such as frozen pipes or a flooded basement, you'll need to file a more substantial claim. In this case, it's important to contact your insurance company as soon as possible. They will likely send an adjuster to your home to assess the damage. Be prepared to provide the adjuster with all of your documentation, including photos, videos, and your log of events. A standby generator can be a key piece of evidence in your favor, as it shows you took proactive steps to protect your home.