When you discover flickering lights, burnt switches or tripping circuit breakers in your Melbourne home, one of the first questions that pops into your head is: "Will my insurance cover this?" Knowing what your homeowners' insurance policy does and doesn't cover when it comes to electrical problems can save you thousands of dollars and potentially prevent dangerous situations.

What Homeowners Insurance Typically Covers

Most standard homeowners' insurance policies in Australia will cover electrical damage caused by sudden and unexpected events. If your home's electrical system gets damaged by a lightning strike, fire or severe storm, your insurance will usually help with repairs or replacement costs.

Covered Scenarios Include:

Lightning Strikes and Power Surges

When lightning strikes your property or causes a power surge that damages your electrical wiring, switchboard or appliances, this is generally covered under your buildings and contents insurance. The main thing is that the damage must be sudden and unforeseen.

Fire Damage to Electrical Systems
If an electrical fire damages your home's wiring, switchboard or other electrical components, your insurance policy should cover the cost of repairs and replacement. This includes fixing the electrical system to make your home safe and habitable again.
Storm and Weather-Related Damage
Severe weather events like floods or storms that damage your electrical infrastructure are typically covered. This might include fallen trees damaging power lines to your home or water damage affecting your switchboard during a flood.

What Homeowners Insurance Doesn't Cover

Here's where many Melbourne homeowners get caught out. Insurance policies have specific exclusions, particularly when it comes to electrical problems.

Common Exclusions:

Wear and Tear
The most common reason insurance claims get denied is that the electrical problem comes from general wear and tear. If your wiring is simply old and outdated, or your switchboard has deteriorated over time, you'll need to cover these costs yourself. Insurance is designed to protect against unexpected events, not regular maintenance.
Non-Compliant DIY Work
If you've attempted electrical work yourself or hired an unlicensed electrician, your insurer may deny your claim. Australian regulations require all electrical work to be completed by licensed professionals, and insurance companies take this seriously. Any damage resulting from unpermitted or non-compliant electrical work typically won't be covered.
Pre-Existing Conditions
If an electrical fault existed before you took out your insurance policy, damage resulting from that fault won't be covered. This is why getting a pre-purchase electrical inspection is so important when buying an older Melbourne property.
Outdated Wiring Systems
Homes with knob-and-tube wiring or aluminium wiring may face difficulties getting insurance coverage at all. Some insurers will refuse to cover properties with these outdated systems, while others may charge significantly higher premiums.

Special Considerations for Melbourne Homeowners

Melbourne's housing stock includes many older homes, particularly in inner suburbs like Pascoe Vale, Preston and surrounding areas. If your home was built before the 1980s, your electrical system may not comply with current Australian standards (AS/NZS 3000).

While non-compliance isn't automatically a deal-breaker for insurance, it can complicate claims. If an electrical fire occurs and investigators discover your home had outdated wiring that didn't meet modern safety standards, your insurer might reduce your payout or deny the claim altogether.

Protecting Your Home and Insurance Coverage

The best approach to protecting both your home and your insurance coverage is proactive maintenance and professional upgrades.

Schedule Regular Electrical Inspections
Having a licensed electrician inspect your electrical system every few years helps identify potential hazards before they become expensive problems. Regular inspections can catch issues like deteriorating wiring, overloaded circuits or faulty switchboards.
Upgrade Outdated Systems
If your home still has ceramic fuses, an old fuse box or outdated wiring, consider investing in a switchboard upgrade. Modern circuit breakers with RCD (Residual Current Device) safety switches provide far better protection and show your insurer that you're maintaining your property responsibly.
Keep Documentation
Save all electrical work certificates, compliance certificates and inspection reports. If you ever need to make an insurance claim, this documentation proves your electrical system was professionally maintained and up to code.
Read Your Policy Carefully
Take time to read your insurance policy thoroughly. Contact your insurer to clarify exactly what electrical scenarios are covered and whether there are any exclusions specific to your property's age or wiring type.

When to Call a Licensed Electrician

Don't wait for a disaster to address electrical problems. Contact a licensed electrician immediately if you notice:

Frequent circuit breaker trips
Burning smells near outlets or switches
Discoloured or warm switch plates
Flickering or dimming lights
Buzzing or crackling sounds from your switchboard

These warning signs mean you have underlying electrical problems that could pose safety risks and potentially void your insurance coverage if left unaddressed.

The Bottom Line

Homeowners insurance in Melbourne generally covers electrical damage caused by sudden, unexpected events like lightning strikes, fires and storms. But it won't cover issues arising from normal wear and tear, poor maintenance or non-compliant DIY work.

The key to protecting your home and keeping your insurance valid is regular professional maintenance by licensed electricians. Investing in electrical safety today can save you from devastating losses and denied insurance claims tomorrow.

Need Expert Electrical Safety Advice in Melbourne?

Contact Melbourne Wiring Services on 1300 746 979 for a thorough electrical inspection. Our licensed team specialises in switchboard upgrades, rewiring services and electrical safety inspections across Melbourne's inner north-west suburbs.

With over 12 years of experience and a commitment to quality workmanship, we'll make sure your home is both safe and insurance-compliant. Get your obligation-free quote today.

Does Homeowners Insurance Cover Electrical Issues? A Melbourne Guide