Reimbursement for Spoiled Food: What You Need to Know During Power Outages

Power Outages and Food Spoilage: A Common Issue

Following a major disaster like Hurricane Laura, extended power outages are common. Nearly 800,000 customers in Louisiana and Texas were without power after the storm hit. However, most electric utility companies do not offer their customers reimbursement for food spoilage caused by long-term power outages.

Insurance Coverage for Food Spoilage

Insurance companies will usually cover up to $500 of food that spoils from a power outage caused by a covered peril under standard homeowners insurance policies. Homeowners insurance deductibles will apply to food spoilage coverage, however, so a $500 deductible, which most policyholders carry, would mean that the policy would only pay if the policyholder suffered more than $500 in food spoilage losses. Some insurers offer food spoilage coverage with a separate deductible for an additional premium.

Comparing Coverage and Offering Useful Advice

According to a recent survey, only about 30% of homeowners have food spoilage coverage as part of their insurance policy. This is a significant gap, considering that power outages are not uncommon, especially during hurricane season. For those who do not have this coverage, it might be worth considering adding it, especially if you live in an area prone to natural disasters. Remember, prevention is always better than cure, so having a plan in place for power outages can save you a lot of trouble and money in the long run.