Lightning strikes and power surges can cause serious—and sometimes hidden—damage to rental properties. From fried wiring inside the walls to destroyed appliances and increased fire hazards, electrical damage can create major, unexpected expenses for landlords. A surge that lasts only a fraction of a second can ruin a furnace, air conditioner, refrigerator, or electrical panel and leave your tenants without essential services. If you own property in lightning-prone areas like Florida or many parts of the Midwest, understanding your landlord insurance coverage and your responsibilities as a property owner is essential.
Not sure if you are protected against electrical storm damage? Learn more about Steadily's storm and hail damage coverage to see what your landlord policy should include, how lightning and wind events are typically handled, and what you can do before severe weather hits to reduce your risk.
Does landlord insurance cover electrical damage from lightning?
In most cases, yes. Standard landlord insurance policies typically cover direct lightning strikes and resulting damage to electrical systems, major appliances, and even fires caused by power surges. When a covered storm event occurs, the policy usually responds to sudden, accidental damage rather than slow, gradual electrical issues.
Covered damage can include burned or melted wiring inside walls or ceilings, damage to electrical panels and circuit breakers, and destroyed HVAC systems or other large appliances that are permanently installed in the rental. In more severe cases, a lightning strike or surge can cause secondary fire damage, and those fire-related repairs are generally included as well. If a surge triggers a fire that spreads through part of the building, the resulting smoke and structural damage are handled much like any other covered fire claim, subject to deductibles and policy limits.
Because every landlord insurance policy has its own terms, it is important to confirm how your coverage handles electrical storms. Check your declarations page and policy language or speak directly with your insurer to understand coverage limits, exclusions, and whether a separate equipment breakdown endorsement applies to certain systems. Knowing the difference between standard storm coverage and specialized endorsements can prevent surprises when you file a claim.
How power surges and electrical fires happen
Power surges and electrical fires can start in several ways, and not all of them are obvious at first glance. Direct lightning strikes to the building, nearby utility poles, or transformers can send massive voltage spikes through your property’s wiring. Even if the lightning never hits the structure itself, a strike close to the power lines serving your rental can create a surge that damages connected equipment.
Surges can also come from the power grid during severe weather, when utilities are switching circuits, restoring service, or dealing with infrastructure damage. Older homes with inadequate grounding or outdated surge protection are particularly vulnerable, as the electrical system may not be able to safely redirect the excess energy. Overloaded circuits during heatwaves or storms—such as when tenants run multiple window units, fans, and appliances at the same time—can compound these issues, increasing the risk of tripped breakers, overheated wiring, or an electrical fire.
These risks can be amplified in single-family homes with older wiring or aging electrical panels that were never designed for modern power loads. If you are not sure how your rental is classified or built, learn more about what counts as a single family home and consider how the age and type of your property may affect its risk profile for lightning and surge damage.
Tips for preventing electrical storm damage
While you cannot stop lightning from striking, you can reduce how much damage it causes. Installing a whole-home surge protector and ensuring proper grounding can significantly lower the odds that a surge will ruin every appliance in the building. Surge protection at the panel helps shield furnaces, air conditioners, refrigerators, and other hard-wired systems that are expensive to replace and essential for habitability.
If your rental has older wiring, aluminum conductors, or a panel that is undersized for current demand, consider working with a licensed electrician to upgrade the system to current code. This can improve safety, support additional loads such as modern HVAC equipment, and demonstrate that you have taken reasonable steps to maintain the property. Trimming overhanging trees near service lines may also help minimize indirect damage by reducing the chance of tree limbs pulling down power lines during storms.
During active storms, encourage tenants to unplug major electronics and sensitive equipment when feasible. While this will not prevent every loss, it can help protect items like televisions and computers and reduce the overall claim severity. Remind tenants to avoid using outlets or appliances if they notice buzzing, burning smells, or repeated breaker trips during or after a storm.
High-voltage surges can destroy electrical systems instantly, but good maintenance and basic protective upgrades can make a major difference in how severe the damage is when a storm hits.
How to document and file a claim
If a lightning strike or surge damages your rental, proper documentation is critical. Start by photographing all visible damage to appliances, outlets, light fixtures, and electrical panels. Take wide shots to show the overall area and close-ups of burned, melted, or charred components. If there are any signs of fire damage—such as soot on walls or ceilings—capture those as well.
Next, get a licensed electrician to inspect the property and provide a written report. Insurers often rely on this professional assessment to confirm that the damage was storm-related and not due to pre-existing wiring issues or faulty installation. Save receipts for emergency services, temporary repairs, or any immediate safety work, such as replacing breakers, installing temporary power solutions, or addressing exposed wiring.
Notify your insurer as soon as it is safe to do so, ideally with reference to the specific date and time of the weather event. Many insurers also find it helpful if you can point to a recorded thunderstorm or lightning event in your area during that window. Not all damage is visible, so if a tenant reports flickering lights, occasional shocks from outlets, or repeated breaker trips after a storm, treat those complaints seriously and arrange an inspection right away.
What is not covered?
Even though lightning and power surges are typically covered causes of loss, there are several common exclusions and limitations landlords should understand. Gradual electrical deterioration from normal wear and tear is not covered; if your wiring is simply old, undersized, or corroded, that is considered a maintenance issue, not a sudden storm loss. Similarly, damage to tenant-owned electronics such as laptops, televisions, and gaming systems usually falls under the tenant’s renters insurance, unless you provided those items as part of the rental.
Coverage may also be limited or denied when damage is traced back to faulty installation or unpermitted wiring upgrades. If someone performed DIY electrical work without permits or inspections, and that work fails during a storm, the insurer may argue that the root cause was improper installation rather than the lightning strike itself. Some policies can also reduce payouts or impose special conditions if your property lacks modern protective systems, such as grounded outlets or required safety devices.
Because these details vary by policy and state, it is important to review your landlord insurance policy carefully and work with your agent or carrier to make sure you are not underinsured when it comes to electrical storm damage. Clarifying coverage before a major storm hits is far easier than trying to interpret exclusions after a loss.
More storm damage topics
If you are building a broader storm-readiness plan for your rentals, it can help to understand how lightning and power surges fit into the bigger picture of severe weather damage. Related topics include:
Each of these storm risks can interact with electrical systems, whether through physical damage to service lines, roof penetrations that expose wiring, or moisture that increases the chance of shorts and fires.
Bottom line: Lightning and power surges are serious—make sure you are protected
Electrical storm damage is not just an inconvenience. A single lightning strike or voltage spike can leave your tenants without power, heat, or cooling and force you to replace costly systems on short notice. Don’t wait until after the damage is done to check your coverage and maintenance practices. Whether it is a full surge that fries your main panel or a small spark that starts an electrical fire, lightning and power surges can cost landlords thousands.
Get a quote from Steadily today to protect your rental properties before the next storm hits, and make sure your landlord insurance is ready for whatever the weather sends your way.
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