Electrical Fires in Rental Properties: Insurance Insights for Landlords

Electrical fires are one of the most common and costly fire scenarios landlords face. From outdated wiring to overloaded circuits, these fires can quickly turn devastating. If you're renting out property, it's critical to understand how landlord insurance handles electrical fire damage—and what proactive steps can help prevent disaster.

As part of your landlord insurance, most standard policies include coverage for sudden and accidental fire damage, including fires caused by electrical malfunctions. For a full breakdown of what's covered and how it works, visit our fire damage coverage page.

Common Causes of Electrical Fires in Rentals:

• Faulty or outdated wiring (especially in older homes)
• Overloaded outlets or circuits
• Misused appliances or space heaters
• Unlicensed or DIY electrical work
• Failure to inspect after tenant turnover

What Does Landlord Insurance Typically Cover?

• Structural damage to the rental unit caused by fire
• Personal property you own inside the rental (like appliances)
• Loss of rental income if the unit becomes uninhabitable
• Fire department charges or emergency services fees in some states

What’s Not Usually Covered:

• Damage due to long-term electrical deterioration
• Fires in vacant properties (typically vacant for 30+ days)
• Electrical work not done to code or by a licensed contractor

Tip: Some insurers may deny a fire claim if it's found the property had known electrical issues that were never addressed. Regular inspections and prompt repairs are crucial.

How to Reduce Fire Risk and Lower Your Premiums:

• Upgrade wiring if your building is more than 30 years old
• Require tenants to avoid high-risk devices like hotplates or daisy-chained power strips
• Install AFCI (arc-fault circuit interrupter) breakers
• Keep a maintenance checklist and conduct annual electrical inspections

More fire coverage topics:

• Fire restoration timeline
• Kitchen fires
• Wildfires

Why Electrical Fires Are a Growing Concern

More tenants today rely on high-powered electronics, EV chargers, and space heaters—meaning more electrical load than many older rental properties were designed to handle. If you're hosting your property on Airbnb or managing short term rentals, the risk may be even higher due to rapid turnover and unfamiliar guests.

Landlord insurance should offer peace of mind in high-risk scenarios like electrical fires. Get a quote from Steadily to make sure your property is fully protected.