What Insurance Considerations Are There for Generators?
Bought a generator to keep your lights on during storms? Smart move. But if it goes up in smoke and your insurer shrugs, that’s a very expensive oops. Read on to find out what can impact your ability to access coverage.
How Homeowners Insurance Covers Your Portable Generator
Portable generators are a go-to for Aussie homes during blackouts or camping trips. But when it comes to insurance, things can get a bit murky.
Most home insurance policies cover a portable generator only if it’s stored and used safely—think: no dodgy setups, no petrol leaks in the shed. If the generator causes damage (like a fire), liability may be on you unless it's explicitly covered.
You’ll also need to check if the policy treats it as a “content item” or if it’s excluded entirely because it's a fuel-powered machine. If in doubt, call your insurer and ask direct questions.
How Homeowners Insurance Covers Your Standby Generator
Standby generators—those permanently installed backup units—are treated more like appliances. If they’re professionally installed and part of the home’s infrastructure, they’re usually covered under your building insurance.
But beware: insurers may exclude damage from lack of maintenance, incorrect installation, or if the generator isn’t up to local safety codes. Always keep the paperwork from your installer and stick to regular servicing.
Maximising Your Insurance Coverage and Savings with a Generator
Generator insurance isn’t just about protection—it can save you money too, if you know where to look.
Exploring Discounts and Endorsements for Your Generator
Some insurers offer policy discounts if your home has a generator, especially if it helps avoid losses during outages.
You may also be able to add endorsements (extra cover options) to make sure your generator is covered for breakdowns, power surge damage, or theft. It’s worth the call to your provider to ask what’s available.
The Value of a Professional Generator Installation
Insurers love a properly installed generator.
A licensed install can reduce liability risks, support your claim if things go wrong, and make your policy cheaper. Plus, it ensures your system is up to code, safe, and ready for a blackout—not a breakdown.
Protecting Your Generator: The Role of Maintenance and Safety
A well-maintained generator won’t just run better—it’ll stand up stronger under your insurance policy too.
Why Regular Maintenance is Critical for Your Generator
Insurance companies often expect basic upkeep. That includes oil changes, filter swaps, battery checks, and running your unit under load occasionally.
Neglecting these tasks can lead to claims being denied. Imagine needing backup power during a storm, only to find your insurer won’t help because the oil was blacker than your coffee.
Avoiding Common Exclusions for Your Generator
Exclusions are the fine print traps that ruin your day. Common ones for generators include:
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Damage caused by incorrect fuel
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Wear and tear from neglect
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DIY installations that don’t meet standards
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Damage from floods or water ingress (unless separately covered)
Protecting Your Generator from Wear and Tear
Dust, heat, humidity—Australia throws it all at your gear. Keep your generator sheltered, clean, and out of standing water. Install a cover or place it in a ventilated enclosure to avoid weather damage.
Also, keep a record of maintenance and servicing. A handwritten logbook or digital record could be your best friend during a claim.
When to Add a Flood Insurance Rider for Your Generator
If you live in a flood-prone area, your standard policy probably won't cover water damage to your generator.
That’s where a flood insurance rider comes in. It’s an add-on that protects against rising water or flash flooding. It may cost a bit more, but it’s nothing compared to replacing a drowned $8,000 generator.
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