The AAIS Form 3 Ed 2.0 appears to exclude coverage for damage caused by a power surge, low power or brown out if the (Sudden and Accidental Damage from Artificially Generated Electrical Current) occurs with an off premise (Power Disruption).

 The Power Disruption exclusion along with the preceding broad preface seems to exclude coverage for a surge when the power disruption (regardless of cause) is off the insured premises.

 The exception to the exclusion, (We do pay for direct loss that is otherwise covered…which occurs on the insured premises) would apply as follows. If an off premise power disruption caused a power surge that damaged a freezer, or heating system, the damage to the freezer or heating system would be excluded. The otherwise covered food loss or any resulting freeze damage would be covered.