Reputation: 70
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Total posts: 6
Hi Lisa.
The HO 3 policy covers "Sudden and accidental damage from artificially generated electrical current. This peril does not include loss to tubes, transistors, electrical components, or circuitry that are a part of the appliances, fixtures, computers, home entertainment units or other types of electronic apparatus."
There is also an exclusion for Power Failure. Power Failure, meaning the failure of power or other utility service if the failure takes place off the "residence premises". But if a Peril Insured Against ensues on the "residence premises", we will pay only for that ensuing loss (but again, see Above, items not covered).
Based on your statement that they rec'd damage to the Electrical System only, that would fall under the items not covered: This peril does not include loss to.... electrical components.
You wouldn't want to advise against a claim, but certainly make the coverage clear to your customer so they may make an informed decision to pursue a claim or not. Also, check for any endorsements that may be on their particular policy that might cover loss due to a surge, as I am addressing the HO3 policy form itself.
Hope this answers your question.
angie