Power outage? Food spoilage insurance

Power outages affect over 1.1 million people a year, according to the latest stats by the Eaton Blackout Tracker, which equates to a lot of wasted food. Luckily, you may already be covered for power outage food spoilage insurance if you have a home insurance policy. If not, you can compare from the policies below — they all include food spoilage insurance.

Compare policies with food spoilage insurance

Name	Product	Food Spoilage	Electrical Motor Burnout	Fire, Storm & Theft Damage	Online Discount	Cheapest way to pay
Budget Direct Home & Contents Insurance Finder AwardBonus		Yes - Up to $500	Optional			Annually	Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you up to 30% off your first year for new combined policies purchased online. This is a big reason it won this year’s Finder Award for value.	Get a quote View details	Compare	loading Fetching your data...
Youi Building and Contents Insurance Best Rated Brand		Yes - Up to $1,500	Yes			Annually	Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.	Get a quote View details	Compare	loading Fetching your data...
QBE Home & Contents Insurance Green CompanyBonus		Yes - Up to $500				Annually	Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft). Its discount is better than most – 20% off your first year with a combined policy.	Get a quote View details	Compare	loading Fetching your data...
Honey Home & Contents Insurance Finder AwardBonus		Yes - Up to $1,000	Optional			Monthly or Annually	Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates your rebuild costs for you. Honey was a finalist for the comprehensive category in this year’s Finder Awards.	Get a quote View details	Compare	loading Fetching your data...
Seniors Top Home & Contents Insurance Bonus		Yes - Up to $1,000	Optional - $2,000			Annually	Our verdict: Get up to 20% off when you buy a combined home and contents policy. Terms, conditions, underwriting criteria and minimum premiums apply, which may reduce discount. Make sure your rebuild costs are accurate though – Australian Seniors don’t do underinsurance cover.	Get a quote View details	Compare	loading Fetching your data...
Kogan Home & Contents Insurance Bonus		Yes - Up to $500				Annually	Our verdict: Good comprehensive cover (issued by QBE). Also, get 22% off on your first year's premium when you purchase a new combined Home & Contents insurance policy online + $10 monthly credit. T&Cs apply.	Get a quote View details	Compare	loading Fetching your data...
Qantas Home and Contents Insurance BonusFinder Award Finalist		Yes - Up to $500	Optional			Annually	Our verdict: Earn up to 30,000 Qantas Points with every Qantas Home Insurance policy you take out by 7 February. T&Cs and exclusions apply.	Get a quote View details	Compare	loading Fetching your data...

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Can I claim food spoilage from a power outage?

Yes. Many home and contents insurers will cover loss or damage caused by a power outage. Generally, you'll find that it's included under the contents insurance part of your policy and covers you for situations like:

• Your freezer accidentally breaking down
• The public electricity supply failing because of an accident
• Insured events such as lightning, storms or water damage
• Electrical motor damage (in some cases and so long as it was caused by an insured event like lightning)

There are some insurers who might require additional criteria in order for your claim to be successful. For instance,

• The Bureau of Meteorology needs to have a record of lightning in your area at the time of the incident.
• You won't be covered if you leave the door ajar or you accidentally disconnect the power supply.
• Some don't cover you for the motor burning out or fusing, unless it was caused by an insured event.

What is food spoilage insurance?

Food spoilage insurance covers you for loss of or spoilage to frozen or refrigerated food, caused by an insured event such as your freezer accidentally breaking, a power outage or in some cases, electrical motor damage. Food spoilage cover is generally included in the contents section of your home and contents insurance policy because that's the part of your cover that protects the items and belongings kept at your home.

How do I get food spoilage insurance?

You'll need a policy that includes contents cover, so you can choose from either;

Contents insurance.

A contents insurance policy can help you cover the cost of lost, damaged or spoiled food if your fridge blows out. Contents insurance is usually cheaper than buying a complete home and contents insurance policy and it can also cover the other belongings you keep at home too.

Home and contents insurance.

A normal home and contents insurance policy can also cover the cost of food spoilage if something goes wrong with your fridge or freezer. This could be a good option if you want to play it safe and get cover for everything, your home and the stuff you keep inside.

What do the home insurers say?

It's similar across most home insurers, however some make mentions of how they cover you in a power outage, and if medications are included.

We looked at the product disclosure statements (PDS) of 3 Australian insurers to show you how it can differ.

Brand	Is this benefit included?	What the PDS says	Limit
	Included	We'll cover the cost of replacing frozen foods that are damaged at your home if caused by: • your freezer accidentally breaking down, • accidental damage to your freezer, or • the public electricity supply failing to reach your freezer because of an accident. An insured event does not have to occur to claim this additional benefit.	Up to $2,000
	Included	We will pay up to $500 for food spoilage if we have accepted a claim for loss or damage from an insured event at the insured address. You don't have to pay an excess if you claim for spoiled food only.	Up to $500
	Optional extra	If you have contents cover then we will pay the reasonable costs to replace any refrigerated/frozen food or refrigerated prescription medicines that are spoiled as a result of: Accidental destruction, loss or damage to the refrigerator or freezer; Your refrigerator or freezer breaking down or; A failure of the electricity supply The most we will pay under this additional cover is $500 per claim. No excess applies when you claim under this additional cover only.	Up to $500

When will this be handy?

Food spoilage insurance is a really handy benefit to have included with home insurance. Here are a few reasons why:

• You have expensive taste. If you're a passionate foodie then it's likely your fridge and freezer is full of good stuff. One power outage or accident and it could all be gone. Not only have you lost good food, you've wasted a lot of money.
• You have a big family. On average, a family of 4 spends $336 a week on food. That's a lot of money to risk losing and one more way home insurance can come in handy.
• You buy food in bulk. If you like to stock up on supplies, there's a lot of money in your fridge and freezer if there's a power outage. Food spoilage insurance can make sure you get reimbursed. Most policies pay you up to $500 towards food loss.
• You live in an area where power outages are common. Some parts of the country have more power outages than others. If you've experienced a power outage in the past, it's worth protecting your fridge full of goods for the next one.
• You live in an area with unpredictable weather. If the area you live in is prone to lightning, storms or other bad weather, there's an increased chance of a power outage. Food spoilage insurance could come in handy.

Do I really need food spoilage insurance?

Since we've already seen fires, storms and strong winds damage power lines and cause outages for thousands of households across Australia in 2020, particularly in bushfire-affected towns, it's wise to get food spoilage insurance included in your home insurance policy. It can reimburse you for the fridge full of food you could lose if something like a power outage or electricity supply failure occurs.

With global warming affecting Australia more severely than other countries, the chances of power outages and blackouts happening again are increasingly likely. You might not need it, but it's covered by most home insurance policies, so is it really worth the risk?

When won't food spoilage insurance cover me?

There are some situations where you might not be covered for food spoilage. These include loss:

• If the food spoilage was caused by a planned power outage.
• If the public electricity supply failed due to industrial action or civil commotion.
• If your freezer is over a certain age, usually 15 years old.
• If you deliberately cause the food to spoil.
• If your claim is related to lightning, and there was no evidence of it in your area at the time of the incident.
• If you leave the door ajar.
• If you accidentally disconnect the power supply.
• If the motor burns out, unless it was caused by an insured event.

Bottom line

Food spoilage insurance probably isn't something you think about every day, but if something happens, you can guarantee you wish you had it. Don't make that mistake — compare home insurance policies that include food spoilage cover below.

Get cover for food spoilage with home insurance

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