Power Failure or Wear and Tear?

August 18, 2011

The insured carries an HO 00 03 (4/91). A light fixture in the insured's living room began to spark as a portable room heater in another room was being plugged in, resulting in smoke damage to the surrounding living room walls. The policyholder's electrician identified the problem as inadequate amperage serving the dwelling and breaker that did not trip during the surge resulting in heat damage to the buss bar inside the panel and possible damage to the wiring at the light fixture as well. Disagreement has arisen over whether the electrical panel and wiring is covered as part of this loss. The smoke damage to the walls would be covered. The electrical panel/wiring would appear to be excluded by operation of the wear and tear as well as mechanical breakdown exclusions.

California Subscriber

I'm no electrician, but this looks like wear and tear/mechanical breakdown. The power didn't fail, it was the breaker that failed to trip the way it's supposed to. The inadequate amperage isn't a loss in and of itself. Any repairs to the breaker box are excluded. However, the damage to the wiring is an ensuing loss the same as the smoke damage, and that should be covered.