Insurance on exterior electrical components


Old 07-21-16, 02:53 PM
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Insurance on exterior electrical components

Occasionally, I receive mail from American Electrical Power (AEP), the electricity provider here, regarding an insurance plan covering cost of repairing exterior electrical system components such as "weatherhead, insulator, riser, meter base and exterior entrance conductor". The insurance plan provides up to $3,000 in annual coverage and no deductibles. The cost is $4.99/mo.

I have never had such insurance. My home is about 26 1/2 years old. I wonder whether this insurance is really necessary.
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Old 07-21-16, 03:14 PM
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Not really. When was the last time you ever heard of someone in your neighborhood having to replace a weatherhead or meter base? If damage is caused by a storm, falling trees, etc. your homeowner's insurance would cover it, but under normal day to day life it would be throwing that money away, IMO.
Old 07-21-16, 03:21 PM
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I get those ads from our utility too. Just from a homeowner perspective... we had a storm here a few years ago that brought down a high voltage transmission line onto the local distribution lines. Half my breakers tripped, a couple appliances fried, and every single GFCI receptacle bit the dust. Most of my neighbors were in the same boat.

I experienced no problems with the outside equipment though, nor did any of the neighbors I talked to. My theory is, if it can endure that... it's pretty beefy stuff.
Old 07-21-16, 04:03 PM
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Thanks for the replies. You confirmed my skepticism about such insurance. I think it's mostly a way for AEP and their insurance partner to make some easy money. I'm going to ignore it.
Old 07-21-16, 09:47 PM
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Interesting.... that's a first I've heard of a plan like that. Sixty dollars a year.

I will say one thing..... at 26-1/2 years..... you may be in need of a service replacement.
You can do your own visual inspection. Check the meter pan for excessive rust. If the riser is service cable.... make sure the seal/putty at the top of the meter pan is in good shape and not cracked. Make sure the cable itself is not cracked.
Old 07-22-16, 08:45 AM
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Thanks for the tips. I'll follow them.

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