7 Types of Electronics in Claims That Are Often Non-Damaged
Which is worse: a week without a refrigerator or without a computer? Regardless of your answer, it probably isn’t a surprise that appliances and consumer electronics are the electrically powered items most frequently included in claim assessments, according to the StrikeCheck 2022 Annual Claims Report. These equipment types are also among those that put carriers at risk for claims leakage.
Last year, insurance professionals assigned nearly 300 different types of electronics to StrikeCheck. Read on to learn which seven – in no particular order – had the highest percentages of non-damaged equipment at the time of assessment or were a potential risk for claims leakage.
- Refrigerators
Policyholders included refrigerators in claims more than any other large appliance last year.
Following a loss, policyholders were quick to claim large appliances, including residential kitchen equipment and washers and dryers. Half of all large appliances sustained damages from high voltage surge. However, 20% of them were non-damaged at the time of assessment.
Refrigerators were the second most assessed electrically powered item last year after televisions. More than 45% of the refrigerators that StrikeCheck evaluated were in proper working condition at the time of the assessment or could be returned to pre-loss condition with a repair. For those that were damaged, the potential variance between average repair and replacement costs was more than $2,000.
Learn more about refrigerator losses, including how to determine Like Kind and Quality equipment, common failures, and components that can be repaired with the Refrigerator Claims Guide.
- Security and Surveillance Equipment
Adjusters shouldn’t ignore security and surveillance equipment when they see it in claims – and thanks to this item’s popularity, that may be more often. Nearly 20% of security and surveillance equipment was in proper working condition at the time of the assessment.
It’s also worth noting that the difference between average repair and replacement costs, totaling $923, was more than that of any other consumer electronic type, including audio and video equipment, general electronics, or networking and computing equipment.
For claims with computers and networking equipment, learn more with the Networking Equipment Basics Guide.
- Electrical Service Panels
More than half of the electrical service panels included in claims were non-damaged at the time of assessment.
Electrical service panels are often ignored until policyholders file a claim for lightning damage at their homes or businesses. Insureds reported lightning as the cause of loss for electrical service panels 33% of the time – while it was determined to be the actual cause of loss for only 1% of them.
What’s more eye-opening is that 60% of all electrical service panels evaluated last year were determined to be non-damaged. That’s a lot of potential claims leakage considering the average cost to replace this equipment was nearly $5,000.
Be better prepared to handle claims that include this equipment with the guide, What To Ask About Interior Electrical System Claims – And Why the Answers Matter to Adjusters.
- Water Heaters
Adjusters should confirm cause of loss for water heaters because many included in claims have sustained damage from wear and tear or are functioning as designed.
Water heaters are another type of equipment policyholders probably take for granted until the equipment stops functioning. However, nearly 25% of them were non-damaged at the time of assessment, and another 27% were determined to have failed due to wear and tear.
Adjusters who have water heaters included in claims should verify damage and cause of loss before making a settlement decision. It’s also critical to exclude repairs as the best course of action to return equipment to pre-loss condition in lieu of a replacement. The difference between the average repair and replacement costs of a tankless water heater, for example, was nearly $1,500.
Better understand the different types of water heaters and the failures they face with the What To Look For in Water Heater Claims eBook.
- Well Pumps
Jet well pumps are among the equipment frequently included in claims and functioning as designed.
Well pumps require an expert evaluation before adjusters make any claim decisions. More than one-third of all assessed well pumps were either non-damaged at the time of evaluation or had a failure caused by wear and tear.
Just as important, well pumps had an average repair cost of $586, compared to the average replacement cost of more than $4,000.
Want to know the best way to handle a well pump claim? Read the article, Adjuster Strategies for Tackling Well Pump Claims.
- Solar Power Equipment
Solar power equipment is a risk for claims leakage if replacements aren’t needed.
Policyholders frequently attributed solar equipment damage to hail or wind, but those perils accounted for just over 10% of the losses. Solar equipment was far more likely to have sustained damage from high voltage surge or be functioning as designed at the time of assessment.
Nearly 50% of solar power equipment evaluated was in proper working condition at the time of the assessment or could be returned to pre-loss condition with a repair. Settling for the average replacement cost of more than $11,000 could mean unnecessary claims leakage.
Learn which causes of loss to expect to see from solar equipment with this guide.
- Generators
Last on our list of electronics likely to be non-damaged or risk potential claims leakage are generators. Policyholders may not use them often, but they will likely be upset if they think the equipment isn’t functioning properly when they need it.
Nearly 45% of all claimed generators were functioning as designed at the time of assessment or had sustained damage from wear and tear. Of those that were malfunctioning by any cause of loss, many could be repaired for an average cost of $1,387. This is compared to the average replacement cost of nearly $12,000.
Find out which four perils are most likely to impact generators.
Whether it’s a refrigerator, a generator, or a solar panel – any damaged electronic can spell a bad day for policyholders. It’s up to carriers to resolve the claim quickly and accurately. StrikeCheck can help. Our nationwide team evaluates hundreds of different types of electrically powered items included in claims to ensure carriers and policyholders alike know the recommended next steps to return equipment to pre-loss condition. We’ll confirm cause of loss, provide repair or replacement recommendations, and give adjusters the information they need to decide how to proceed. Submit an assignment for objective, comprehensive answers.