Where to Get Compensation for Spoiled Food After a Power Outage
As cold, sleet, ice and snow fall in many areas of the country, the threat of power loss is becoming more and more serious. While power outages may cause only the minor inconvenience of eating leftover food in headlights at night, they can sometimes have a much longer and more costly impact as the food in your refrigerator slowly spoils. But when severe weather cuts the power to your home for days at a time, you can actually be compensated for the loss—from homeowners insurance.
Let’s start with a big caveat: every homeowner’s insurance policy is different. We cannot guarantee that your insurance company will reimburse you for any food that goes bad in your home as a result of a power outage – you will need to check your individual policy to be sure. However, Allstate notes on its website that “homeowner’s insurance may, in some cases, offer reimbursement for food lost during a power outage.” Online insurance marketplace Policy Genius offers a more reassuring proposition: “Most standard homeowner insurance policies cover up to $500 in case of food loss after a power outage, but only if the reason for the outage is covered by your policy.” ( This also applies to renter’s insurance .)
So what are these mysterious “causes and events” that homeowners’ and renters’ insurance can cover food spoilage?
When can I file a spoilage claim?
First, it is important to understand that the cost of food waste will only be covered under certain conditions, referred to in industry parlance as ” risks “. Common weather-related hazards include: lightning, hurricanes and hail, falling objects (such as trees), water damage, and the weight of ice, snow, or sleet. (If food goes bad due to maintenance issues or your own negligence, such as accidentally cutting a power line while renovating a bathroom or forgetting to pay your electricity bill, you’re out of luck. .) If the power outage happened as a result of one of the aforementioned hazards, there is a better chance that it will be covered.
Note that some insurance companies and plans will only cover food spoilage if the power outage is widespread throughout the area, while some may cover it even if it only affects your home.
Be aware of restrictions and franchises
Refrigerator or freezer spoiled food does not automatically mean a full refund. For example, your groceries might cost $675 while your homeowners insurance might have a $500 reimbursement limit. Or there may be a deductible that you need to pay before you see any benefit in your bank account. Limits and deductibles vary, so be sure to read the fine print on your individual policy.
According to a Forbes adviser , if you do have to pay the deductible, “The Insurance Information Institute recommends asking your utility provider if they will reimburse you for the deductible.”
Keep receipts and take pictures
You may not be in the habit of keeping grocery receipts, but during peak months of inclement weather, it’s best to keep them with you because when it comes to a food spoilage claim, your insurance company may need receipts (especially if you’re claiming expensive food, like five pounds of steak). If you don’t have receipts, make a complete list, estimate the total cost of groceries, and take photos of spoiled food—anything that can serve as proof of purchase to support your claim.
Weigh the pros and cons before filing a lawsuit
Even if you’re looking for $200 in cottage cheese and rotten meat after a power outage, filing a lawsuit might not be in your best interest. In the eyes of your insurance company, a claim history increases your chances of filing another one. The more claims, the more costs for them, which is equivalent to a potential increase in your insurance premiums when you renew your policy.
Of course, you can never know what or how much this surcharge will rise to, and filing one weather-related claim does not necessarily mean a higher surcharge. This is just one factor to consider when you’re weighing whether or not you should be trying to get a refund on all those frozen pizzas.