Does Homeowners Insurance Cover Fires Caused by Faulty Wiring?
Home fires caused by faulty electrical wiring remain among the leading causes of residential property damage across the United States, particularly in states like Florida, where aging infrastructure and DIY repairs are common. Understanding whether homeowners’ insurance covers fires caused by faulty wiring is crucial for anyone looking to protect their home, finances, and family.
The answer depends on the circumstances of the fire. Although a homeowner’s insurance policy usually covers electrical fires and related damage, you may be barred from recovery if the insurance company believes you knew or had reason to know of the issue but failed to fix it. Most insurance companies also do not cover losses that result from low-quality or do-it-yourself repair jobs.
Understanding Homeowners Insurance and Fire Coverage
Standard homeowner’s insurance policies often cover fire damage, including fires caused by faulty wiring. However, coverage can vary depending on your policy’s specifics and the fire’s circumstances. Here’s how insurance typically addresses these situations:
- Standard Coverage: Most homeowners’ insurance policies include coverage for fire damage, which generally encompasses damage from electrical fires. If a fire originates from faulty wiring, your insurance should cover the cost of repairing or rebuilding your home and replacing damaged belongings, subject to policy limits and deductibles.
- Policy Exclusions: While fire damage is often covered, some policies may have exclusions or limitations related to electrical issues. For example:
- Negligence: Your insurance company might deny the claim if the faulty wiring resulted from your negligence, such as failing to address known electrical problems or ignoring maintenance issues. Insurance typically covers damages from unexpected or accidental events rather than damages resulting from neglect.
- Lack of Maintenance: Policies might exclude coverage if it’s proven that a lack of proper maintenance caused the damage or if the wiring was outdated and not updated to current standards.
What Is Considered Faulty Wiring in Home Insurance Claims?
Faulty wiring refers to any electrical system or component in a home that is improperly installed, damaged, outdated, or otherwise unsafe. This can include:
- Worn or frayed wires
- Overloaded circuits
- Aluminum wiring in older homes
- Loose or exposed connections
- Improper DIY electrical work
- Old breaker panels or fuse boxes
- Outdated knob-and-tube or cloth-insulated wiring
Insurers assess the age, condition, and type of electrical systems during the underwriting process. The damage is typically covered if the faulty wiring is accidental or sudden. If the insurer determines that the fire was due to negligence, code violations, or poor maintenance, the claim may be reduced or denied.
When Insurance May Deny Coverage for Faulty Wiring Fires
Negligence or Failure to Maintain
Insurance companies may deny claims if they find that the homeowner was aware of the faulty wiring and failed to take action. Examples include:
- Ignoring burning smells or flickering lights
- Repeated circuit breaker trips
- Using unlicensed electricians
- Failing to upgrade known hazardous panels (e.g., Federal Pacific)
If it’s determined that the homeowner knew about the wiring issues and failed to correct them, the insurer may label the situation as “preventable” and deny coverage.
Code Violations
If the electrical system does not meet current code standards—especially in cases where homeowners have added new appliances or renovated without permits—insurers can cite code noncompliance as a reason to reject the claim.
Fire Damage Liability: Who Is Responsible?
Homeowner Negligence
Insurance companies may reduce or deny the claim due to negligence if known electrical issues cause a fire that the homeowner failed to address. Maintaining a home’s electrical infrastructure is considered a standard duty of care in Florida.
Landlord or Property Manager Liability
Landlords can be liable for rental properties if faulty wiring causes a fire. Florida law requires that all rental homes be fit for human habitation and meet current electrical safety codes. Failure to make repairs after tenant complaints can lead to lawsuits and full liability for damages, injuries, or wrongful death.
Builder or Contractor Liability
If a home fire is traced back to faulty wiring installed during construction or remodeling, the builder or contractor could be liable under Florida’s construction defect laws. Victims may be able to file claims against the contractor’s general liability insurance or pursue civil litigation.
What Does Homeowners Insurance Typically Cover After a Wiring Fire?
Dwelling Coverage (Coverage A)
Pays for repairing or rebuilding the physical structure of the home. This includes:
- Interior walls
- Roof
- Flooring
- Plumbing and HVAC systems were damaged in the fire
Other Structures (Coverage B)
If the fire spread to a detached garage, shed, or fence, these repairs are typically included up to a percentage of the dwelling limit.
Personal Property (Coverage C)
Items such as electronics, clothing, furniture, and appliances damaged or destroyed in the fire are reimbursed at actual cash value (ACV) or replacement cost, depending on your policy.
Loss of Use (Coverage D)
Also called Additional Living Expenses (ALE), this covers:
- Temporary housing
- Meals
- Laundry
- Storage of undamaged belongings
What About Condominium Owners?
Condo owners must rely on a combination of:
- HO-6 condo insurance (covering unit interiors and personal property)
- Master condo policy (covering shared walls, roofs, and common areas)
Fires caused by faulty wiring inside your unit fall under your personal condo policy. Damage to common areas or other units may be the responsibility of the association’s master policy, depending on the condo bylaws.
How to Prevent Fires Caused by Faulty Wiring
From 2012 to 2016, fire departments in the US responded to 44,880 home fires from electrical malfunctions or faulty wiring. In these four years, electrical issues caused an average of 1,250 injuries, 440 deaths yearly, and $1.3 billion in property damage. Protect your family from fires caused by faulty wiring with the following tips:
- Get an electrical inspection every 5–10 years (or before buying a home)
- Avoid overloading outlets and circuits
- Replace old appliances and frayed cords
- Know your policy and endorsements
Electrical and faulty wiring fires occur not only in houses; these safety measures can also be applied to offices, sheds, garages, and vehicles. When in doubt, have a licensed electrician check your system for problems. Staying on top of electrical maintenance can help prevent a faulty wire from causing a fire.
Need Help with a Denied Fire Insurance Claim?
While many homeowners’ insurance policies cover fire damage, including damage from electrical fires, it is crucial to understand the specifics of your policy and any potential exclusions. By maintaining your electrical system, keeping thorough documentation, and knowing your rights, you can better protect yourself and ensure you receive the coverage you need in the event of a fire. If you encounter issues with a denied claim, seeking professional assistance from our expert Florida insurance claim attorneys can help you navigate the appeals process and achieve a fair resolution. Call us at 1-800-451-6786 or fill out our online contact form.