Are There Insurance Implications for Using Propane Generators?

Propane Generator Insurance Risks

When using propane generators, insurance companies may view them as a higher risk due to the potential for explosion or fire. This increased risk can result in higher premiums or even policy exclusions. To mitigate these risks, consider installing a propane tank with a lockout valve to prevent accidental leaks, and ensure the generator is installed at least 20 feet away from any structures.

Generator Safety Features and Insurance Discounts

Installing safety features such as spark arresters, flame arresters, or automatic shut-off devices can help reduce the risk of accidents and potentially qualify you for insurance discounts. These features can help prevent sparks from igniting nearby flammable materials, and automatically shut off the generator in the event of an engine malfunction or low oil levels. For example, a spark arrestor can reduce the risk of wildfires by preventing sparks from escaping the exhaust pipe.

Policy Exclusions and Coverage Options

Some insurance policies may exclude coverage for propane generators or have specific requirements for their installation and maintenance. It’s essential to review your policy carefully and discuss any concerns with your insurance provider. If you’re unsure about coverage, consider purchasing a separate policy specifically designed for propane generators or seeking advice from a licensed insurance professional. In some cases, you may be able to add an endorsement to your existing policy to cover propane generator-related risks.