You just moved into a brand-new Mississippi home, and suddenly an electrical fire breaks out. Your home and belongings are damaged, but do you have to pay for this? Or can someone else be held responsible?

Knowing what your home insurance covers and doesn't cover can help answer questions like these, but insurance can be complicated. That's why a Mississippi independent insurance agent can help. They can answer your questions and help you navigate insurance when unexpected situations arise. If an electric fire happens in your new home, here's what you need to know.

Who’s Responsible If There’s an Electric Fire in My Brand-New House?

Responsibility will depend on what caused the electric fire. Was it caused by something you did, negligence on the part of the builder or contractor, or a freak accident? Either way, you'd likely start the process by filing a claim with your home insurance. 

The insurance company would investigate the cause of the electric fire, determining who pays. Ultimately, if you can prove that the fire started because of something the builders or contractors did, they'd be responsible for the damage. If it were sheer bad luck or the result of an unexpected event like lightning, then you would be financially responsible. 

What Kind of Insurance Coverage Does the Builder Have?

Business insurance in Mississippi is required by any company that uses vehicles for transportation, has five or more employees, and/or has taken out a commercial loan. An important type of coverage for builders and contractors is professional liability insurance.

• Professional liability insurance: This type of coverage, also known as "errors and omissions," helps pay for any damage resulting from negligence, mistakes, or giving bad advice.

If an electric fire occurs in a brand-new home, it's possible that something was done incorrectly when the house was being built. If the company is found responsible, their professional liability insurance would cover the claim. Most builders will also carry general liability coverage, workers' compensation, builders risk insurance, and commercial vehicle insurance. All of these protect them from mistakes, injuries, or potential losses they cause to clients. 

Am I Responsible for Covering Any Damage Caused by the Electric Fire?

If it is determined that your builder was responsible for the electric fire, then you would not have any financial obligations. However, if the builder was not found responsible and you had to pay for the damage yourself, you would have to pay your insurance deductible and any costs that exceeded your policy limits.

An electric fire would be covered under your structural damage coverage and your contents coverage in your home insurance. Both coverages will have a specific limit on how much they'd cover in an event. Anything outside that limit is your responsibility.

Your home insurance would also cover any medical needs, temporary housing, and even liability lawsuits if you were to get sued. The point is, if you are responsible for damage yourself, your home insurance has your back.

What Does Homeowners Insurance Cover in Mississippi?

Mississippi home insurance is a comprehensive set of coverages covering the home's physical structure, the family living inside the house, and their belongings. Standard coverage includes four main protections, but you can add additional coverages as needed. 

• Contents coverage: Covers your personal belongings like clothing, furniture, collectibles, rugs, electronics, etc., for perils such as fire, theft, and severe storm. 
• Structural coverage: Covers the structure of your home, including built-in appliances, garages, and detached sheds for the same perils as contents coverage. 
• Legal coverage: Provides liability coverage against lawsuits filed by third parties. This coverage reimburses for legal costs like attorney and court fees related to third-party injury or property damage. 
• Additional living expenses coverage: Covers extra expenses if your home becomes temporarily unlivable after a covered disaster like an electric fire, severe storm, theft, etc. It reimburses for extra expenses like hotel rooms, additional mileage, meal costs, etc.

An independent insurance agent can go over additional coverages available for homeowners. They can help you secure more coverage if you need it. 

What Doesn't Homeowners Insurance Cover in Mississippi?

It's equally important to know what isn't covered by your homeowners insurance in case you ever end up in a situation where you're not protected. The most common exclusions in home insurance include:

The good news is you can purchase separate coverage for things like businesses, flooding, and earthquakes. 

Will My Rates Be Affected Even Though I’m Not Responsible for the Damage?

If you file a claim, you run the risk of your rate increasing. However, if the electric fire was not your fault, your insurance company will consider that. Homeowners who do not file claims frequently or are filing a claim for the first time are less likely to see significant increases than those who consistently file claims. If you have several electric fires, your insurance will begin to see your home as a risk and increase your policy rates to match their work to continue handling your claims.

What Can I Do to Prevent Electrical Fires in My Home?

Taking a few precautionary steps to prevent electric fires can keep you out of harm's way and from experiencing severe fire damage. To decrease your chances of electric fires, do these things:

1. Check and replace plugs: Loose-fitting plugs can be a fire hazard. Missing or broken wall plates can also lead to a fire. Check and replace the plugs in your home if they're loose, missing, or broken.
2. Don't overload outlets: Never force a plug into an outlet or overload an outlet with too many plugs. 
3. Have good cords: Check that your cords are not frayed or cracked, or located in high traffic areas or below rugs or floors. It's also not recommended to nail your cords to walls, floors, or ceilings.
4. Get the proper light bulbs: All light bulbs should match the fixture wattage requirements. It's not safe to put a higher watt bulb into a fixture than it's made for.
5. Install ground fault circuit interrupters: Install GFCIs in your kitchen, bathrooms, laundry, workshop, basement, and garage, as well as on outdoor outlets.
6. Know your home's service capacity: The more appliances and electronics you have plugged into your home, the more service you're using. Understand your home's service capacity, so you know you aren't overloading it.

Why Work with a Mississippi Independent Insurance Agent?

When it comes to one of your most valuable assets, you want to work with the best people. Mississippi independent insurance agents are experts in home insurance. They know how to find you the coverage you need to protect against electric fires and any other risks that may arise.

Agents shop multiple insurance carriers to bring you several quotes to choose from. They'll review coverages, limits, and pricing with you and help you pick a policy that best suits your needs. There's no obligation to work with an agent, so start a conversation today and see what they can do for you.