Does Adding a Generator Affect Your Home Insurance? A Guide for Myrtle Beach and South Carolina Homeowners

South Carolina homeowners know that hurricanes, heavy storms, and power outages can be somewhat common. Especially in areas like Myrtle Beach and the surrounding communities in Horry County, having a reliable backup power source can provide peace of mind and added protection. With a whole-house generator, you can keep your lights on, your refrigerator running, and your home safe in case of an emergency. But before installing one, you may be wondering, “How will a generator affect my home insurance premiums?” Let’s break it down.

Does Adding a Generator to Your Home Lower Insurance Costs?

The short answer is: it depends. While having a generator can certainly improve the safety and security of your home, it is important to consider how it may impact your home insurance rates.

Some insurance carriers do offer small discounts for homeowners who install a whole-house generator. Currently Davis Insurance Associates represents one company that offers such discount. However, the aforementioned company is not currently writing much new business in our area and these discounts tend to be modest (often only a few dollars off your premium).

On the flip side, adding a generator may increase your home’s replacement cost. Whole-house generators can be expensive, and when they are added to your property, your home’s overall value may rise. As a result, you may need to increase your coverage slightly to account for this added value, which could result in a minor increase in your premium.

Should I Tell My Insurance Agent I Installed a Whole-House Generator?

Yes! Notify your insurance agent when you add a significant feature or update to your home. This includes installing a whole-house generator. Doing so ensures that your coverage accurately reflects the value of your home, and any new risks associated with it.

It’s also a good idea to inquire about any potential discounts or rate adjustments before you install the generator. While discounts for generators are still relatively uncommon, many insurance companies are getting more creative with ways to incentivize home upgrades that reduce the frequency and severity of claims. So, it’s possible that in the future, more insurance companies may begin offering discounts for homeowners who have a generator installed.

Are Generators Covered by Home Insurance?

In general, home insurance policies will cover a whole-house generator as part of Coverage A (Building) since they should be permanently installed, but it’s essential to review your specific policy. Depending on the circumstances, a home insurance policy can cover theft or damage from covered perils pretty much the same way coverage applies to Coverage A.

A portable generator will typically fall under Coverage C (Contents/Personal Property).

*Read your policy for full and accurate coverage information. This blog does not supersede terms and conditions of your insurance policy.

Benefits of Adding a Whole-House Generator.

There are plenty of reasons why a generator is a worthwhile investment for your home, especially in storm-prone areas like Myrtle Beach and the surrounding region. Here are some key benefits:

• Dependable Backup Power: A generator provides a reliable source of electricity when your home experiences a power outage, keeping your lights, heat, and essential appliances running.
• Increase the Value of Your Home: In some cases, a whole-house generator can enhance your home’s value, particularly in coastal areas like Myrtle Beach, where reliable power is a key selling point.
• Preserve Food and Appliances: A power outage can lead to spoiled food, damage to appliances, and other costly issues. With a generator, you can keep your refrigerator, freezer, and other critical systems functioning.
• Low Maintenance: Generators are generally low-maintenance systems, making them a near hassle-free addition to your home. Proper maintenance can ensure that they will be ready when you need them.
• Peace of Mind: Most importantly, a generator provides peace of mind during severe weather or emergency situations. Knowing that you have a reliable power backup in place can reduce stress and increase safety for you and your family.

Considerations When Installing a Generator.

While installing a generator in your home can provide several benefits, there are a few key considerations to keep in mind to ensure it’s done safely and efficiently.

1. Professional Installation: It is crucial to have a licensed professional install the generator. Improper installation can lead to dangerous situations, including fire hazards, carbon monoxide poisoning, and even injury. Use certified electricians or generator installers to handle the job.
2. Mechanical Breakdown Coverage: If your generator is important to the functioning of your home, consider adding Mechanical Breakdown Coverage. This optional endorsement does not cover wear and tear, but it can help if the generator experiences a mechanical failure. Review your policy and talk to your insurance agent about whether this coverage makes sense for you.
3. Generator Safety: Ensure that your generator is installed in a well-ventilated area and far from windows or doors to prevent dangerous carbon monoxide buildup. Follow all safety guidelines provided by the manufacturer to avoid any risks during use.

Final Thoughts: A Whole-House Generator is a Smart Investment for SC Homeowners.

Adding a whole-house generator to your home in South Carolina, particularly in areas like Myrtle Beach, can provide valuable peace of mind, especially during hurricane season and severe storms. While installing a generator might not drastically lower your home insurance premiums, it could have a small effect on your coverage and costs, depending on your insurer.

Before making any changes to your home, check with your insurance agent to discuss coverage adjustments, discounts, and policy options that may be available to you. With the right preparation and understanding of your coverage, you can enjoy the benefits of your new generator while keeping your home and family safe.

For more information or to discuss how a generator could affect your home insurance, contact Davis Insurance Associates today! We’re here to help South Carolina homeowners make informed decisions and get the best coverage possible.