Does Homeowners Insurance Cover Generators?

  • Post category:Insurance

Having a generator on standby is a good thing to have in an emergency. But if something happens to the generator, will it be covered by your home insurance? Let's take a look at whether generators are covered under home insurance and what you can do to make sure you're protected.

Most home insurance policies will cover damage to your home generators caused by events like fire, theft, or vandalism. However, they more than likely won't cover the generator due to faulty parts, old age, or wear and tear. Talk to your home insurance agent to see if your policy covers home generators and find out what you need to do to ensure you're protected.

Home insurance policies can be tricky depending on what you're looking to insure. In this article, we will take a closer look at the circumstances in which your home insurance policy might cover your generator. In addition, we will answer other frequently asked questions about home insurances policies and what can be covered, so keep reading!

electric generator on outdoor, Does Homeowners Insurance Cover Generators?

Does Homeowners Insurance Cover Generators?

Having a generator connected to your home can be a lifesaver in the event of a power outage. But like anything in your home, generators can fail or be damaged by a natural disaster, leaving you in the dark—and potentially money out of your pocket.

There are certain circumstances where your insurance company will help you out with the loss of your generator. For example, if your generator is in the garage and the garage catches on fire, ruining your generator, your homeowners policy would likely cover the cost of the generator.

The same can be said for other events like a natural disaster such as lightning striking your generator, a hurricane, or a tornado.

However, there are some instances where your homeowners policy might not cover the cost of a generator. For example, if you have an older generator and it breaks down due to normal wear and tear, your insurance company is likely not going to reimburse you for the cost of a new generator.

Additionally, if you don't have your generator properly maintained and it fails; as a result, your insurance policy is also not likely to cover the cost.

It's important to talk with your insurance company about what is and isn't covered under your homeowners policy when it comes to generators. This way, you know what to expect in the event that your generator is damaged or needs to be replaced.

A home generator that provides electricity during a power outage. It is connected to a propane gas supply.

Does A Home Generator Lower Insurance Premiums?

Most insurance companies will give a discount of 5% on your home insurance policy if you have a generator. However, the generator typically needs to be an automatic standby generator that's powered by either propane or natural gas.

Additionally, the generator may need to be permanently installed in your home to get the discount. This means that if you own a portable generator that you also use for camping or outdoor events, you would not be eligible for the discount.

If you are interested in getting a home generator to get the insurance discount, talk with your agent to see if your policy offers it. Be prepared to answer some questions about the type of generator you have and how it's installed.

What Is Not Covered By Standard Home Insurance?

Home insurance policies are extensive and cover a wide range of events, but some things typically aren't covered. These include the following:


Most standard home insurance policies don't cover earth movements such as earthquakes or sinkholes. However, if you live in an area prone to these events, you may want to consider purchasing additional coverage.


Another event not typically covered by standard home insurance policies is flooding. Again, this can be due to several factors such as heavy rains, storms, melting snow, and more.

If you live in an area that is susceptible to flooding, you may want to consider purchasing additional flood insurance.

Sewer Backup

One event most home insurance policies do not cover is a sewer backup. This can happen when the sewer system in your area becomes overwhelmed and sewage starts backing up into your home.


Mold growth is another event not typically covered by home insurance policies. This can be due to several factors such as water damage, humidity, and more.

Animal Damage

Damage caused by animals, such as rodents or squirrels, is not typically covered under standard home insurance policies. In addition, damage caused by insects such as termites is not typically covered.

Maintenance Issues

Typical wear and tear, such as failing parts, rust, and more, are not covered under home insurance policies. Unfortunately, this means that if your generator fails due to not being adequately maintained, you would not be able to file a claim with your insurance company.

Selective focus of magnifying glass,glasses and Insurance Policy letter on a white wooden background.

Should I Have A Home Generator?

There are many factors to consider when deciding if you should have a home generator.

First, you need to ask yourself if you are comfortable going without power for an extended period. If the answer is no, a home generator may be a good option for you. If you live in a region where severe storms are common, then it may be a good idea to have one.

Second, you need to determine what would happen if you lost power. For example, if you have an elderly parent or someone who relies on medical equipment requiring power, a home generator may be necessary.

Third, you need to consider the cost of a home generator. They can cost $10,000 or more.

Finally, you need to decide if you want a portable or permanently installed generator. Portable generators are less expensive but require more maintenance. Permanently installed generators are more expensive but require less maintenance.

No matter what you decide, be sure to do your research and talk to your insurance agent to make sure you are covered in the event that your home generator is damaged or needs to be replaced.

Standby Generator Or Portable Generator — What Is Better?

When deciding if a standby generator or portable generator is better for you, consider a few things.

Standby generators are typically more expensive than portable generators by a long shot. However, they require less maintenance and are more reliable. In addition, you have an opportunity to get a discount on your insurance premium.

A plus for portable generators is that they can be used for various purposes such as power outages, camping, and more.

Another plus of portable generators is that they are typically less expensive to operate than standby generators. Finally, portable generators can be stored in a garage or shed when not in use.

Before choosing between the two, you need to ask yourself what is more important to you—less maintenance or lower cost of operation. You also need to ask yourself what you would use the generator for.

A standby generator is a better option if you are primarily concerned with power outages. A portable generator is a better option if you are primarily concerned with backup power for medical equipment or other appliances.

Gasoline Portable Generator

Does A Whole-House Generator Increase Home Value?

In addition, to get a discount on your home insurance premium, a whole-house generator may also increase the value of your home. On average, homeowners can expect a 3%-5% increase in their home value with installing a whole-house generator.

This is a significant return on investment for homeowners who may sell their houses down the road.

If you are looking for an immediate return on investment, a whole-house generator is not the best option. However, if you are looking for a long-term investment, a whole-house generator is a good option to consider.

How Big Of A Generator Do I Need For My Whole House?

Before buying a generator, you need to make sure that it has enough juice to power your whole house. Typically, you will need a minimum of 30KW of power to run your entire home.

If you have a large home with many appliances, you may need more than 30KW. For bigger homes, you may need 50KW, but it is essential to consult with a professional to get the most accurate estimate.

If you are unsure how much power you need, it is best to overestimate and buy a generator with more power than you think you will need. That way, you will be sure that your home will be powered in the event of an outage.

installing a 17 day whole house emergency generator for hurricane season.

How Much Is A Whole-House Generator?

A whole-house generator can be a significant investment. They typically range in price from several thousand dollars to tens of thousands of dollars for a medium-sized home. In addition, homeowners need to factor in the annual maintenance and repair costs.

While it may save you on your home insurance policy, the generator may not be used often enough to justify the cost if you don't get severe storms often. So instead, purchasing a portable generator for under a thousand dollars may be a better option.

Final Thoughts

Before deciding on a whole-house generator, be sure to do your research and consult both your insurance agent and a professional. They can help you make the best decision for your needs and budget.

Thank you for reading our article on whole-house generators. Here are other related articles that you may be interested in:

Does Homeowners Insurance Cover Bird Damage?

Does Homeowners Insurance Cover Wood Siding?

Does Car Insurance Cover Tire Blowout Damage?