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Electric Home Insurance Review

Electric Insurance Homeowners Review

Electric Home Insurance Review

Electric Insurance is a Massachusetts-based insurance company that provides insurance to General-Motors employees and regular citizens; it provides coverage for all 50 States and is considered a national insurer. Electric Insurance was started as an insurance company for the GE auto-manufacturing union, it used to insure auto-motive workers for GM exclusively until it decided to expand to personal and business coverage options. Electric Insurance is a subsidiary of General Electric. Electric is currently one of the largest insurance companies in the U.S. – Electric Insurance currently insures over 125,000 paying customers. 

Electric Insurance is deep-rooted in the insurance business and they’ve been in business for over 50 years. Electric Insurance was founded in 1966 by an entrepreneur who wanted to provide insurance for General Electric workers – the largest automobile corporation in the U.S. Electric Insurance was bought by GE and they are still a subsidiary of the automotive corporation – however, they now offer insurance policies to regular citizens and not only automotive workers.

Electric Insurance provides a range of insurance policies: homeowners insurance, automotive insurance, recreational vehicle insurance, 2nd property/vacation insurance, rental/tenant insurance, commercial property insurance, umbrella insurance, and more. Electric policies are available in all 50 states including Washington D.C. and Puerto Rico. Electric sells their policies directly and does not through independent agents, however, they have subsidiary offices in CA and NJ. Clients can receive a quote by entering basic information such as zip code and insurance policy (quotes are available on their website directly). Electric Insurance is located in Beverly, MA.

Electric home insurance policies are available for the following:

  • Homes
  • Condominium Units
  • Rental properties

Financial Ratings

Electric Insurance is one of the most financially-stable companies in the United States. It received ratings by all major financial institutions including the Better Business Bureau. A.M. Best, one of the largest insurance rating institutions awarded Electric an A – Excellent rating for financial stability. Electric Insurance is listed on the Better Business Bureau, a company responsible for rating businesses based on their financial stability and customer complaint ratio. The BBB currently rates Electric Insurance A+ for customer support and financial stability.

Home Insurance HO-3 Plan

Electric Insurance offers a single homeowners HO-3 policy without add-ons and upgrades. The standard policy covers clients for all perils and personal property, and it includes many benefits such as 100% repair/replacement cost on all damages. Electric’s HO-3 policy covers clients for the following: the home, side buildings, personal belongings, medical liability, personal liability, loss of use liability, and more. The HO-3 plan is available in 12-month installments. The following are covered under Electric’s plan:

Main Residence

Electric Insurance’s main priority is the home – the home gets the most coverage of any other part, and Electric will cover up to 100% of all repair and destruction costs. If the home is completely collapsed and needs rebuilding, Electric will reimburse the client for the rebuilding cost. Clients are covered for any damages to the exterior and interior of the home such as roof shingle damage, window damage, door damage, molding, etc.

Electric provides a “Guaranteed Replacement Cost” policy with the standard plan – this means that even if the home repair exceeds the current coverage, they will cover the difference (for instance, if the client’s coverage is $400K and the contractor bills them $500K for rebuilding from the ground-up, they’ll be covered). The plan provides coverage for home invasions, vandalism, natural disasters (earthquakes, fires, hurricanes, tornadoes, volcanoes, etc) and virtually all damages.

Side Structures

If the client has multiple structures on their property that are detached from the main home, those will receive coverage albeit the coverage will be smaller than that of the main residence. Side structures include visitor’s homes, sheds, pool houses, cabanas, animal houses, workshops, and more.

Personal Belongings

If any of the client’s personal belongings or items inside the house are damaged, Electric provides coverage for the full replacement value of the items. Personal belongings are all things which can be found in the house: clothing, furniture, silverware, and they include more expensive belongings such as electronics, pool equipment, AC units, etc. The only exception to personal belongings is extreme high-value items such as artwork, antiques, premium watches, gold/precious metals, and other items which can be insured separately.

Living Expenses

If a client has to move out of their home while repairs are being carried out, Electric will fund all their living expenses for the time being. This includes hotel/rental unit costs, bills, living costs, transportation costs, and virtually all living expenses. The policy provides coverage for all time periods – if the client has to move out for only a few days or if a client has to move out for 6 months.

Lawsuit Liability

If a client is held liable for damage to another person’s property and they are pursued in the court of law, this policy will cover all their legal expenses in court. For instance, if a client’s tree falls on a neighbor’s house and they are sued for damages, this policy will pay for the client’s expenses until they can settle the dispute.

Medical Liability

If the client is injured in their property, Electric bears full responsibility for all medical expenses. This policy extends to all visitors and family as well.

Optional Coverage Increase

Clients can inquire as to the % of the coverage that goes into replacement cost for any of their personal belongings or structures. For instance, if 10% of the coverage is allocated for the side garage and the client wants to increase their coverage, they can do this without any extra fees – the increased coverage will be added to their main plan.

12-Month Policy LOCKS

Electric is flexible on payment terms, but they exclusively offer fixed 12-month policies (clients can pay monthly, but their initial rate stays the same). This is to the benefit of the clients, as many insurance companies only offer short 6-month policies in order to increase the premium price after 6 months. With 12 month policies, clients are guaranteed that their premium rates won’t be increased for at least 12 months. Electric exclusively operates HO-3 plans on 12-month policies. Once a client agrees on a rate, this is their guaranteed rate for a full year.

Payment Flexibility

Electric is one of the most payment-flexible companies. For instance, Electric accepts regular payments but clients can also pay using their employer’s benefits program – this can be deducted directly from a client’s paycheck, therefore saving a client time because they don’t have to pay the bill every month (it’s automatically deducted from their paycheck). Electric is flexible on payment terms and accepts annual payments, semi-annual payments, quarterly, monthly payments – whichever is ideal for the client.

Customer Reviews

Electric receives excellent customer reviews – they’re deemed a financially-responsible company that provides low premium rates and fast payouts. Customers rave about their customer support before & after claims, as they are quick to dispatch response teams and help clients in emergencies. Electric also receives praise for their bundle options, as many clients can combine their auto insurance with their home insurances for a discount. Electric’s customer service representatives also receive positive ratings.

The negative reviews about the company come from a few clients who claim Electric bumped their insurance rates without a reason – the company sometimes increases premiums and renews clients policies automatically. Unless a client explicitly calls to cancel their policy in advance, the company will assume their policy is up for renewal. Some clients say the company underestimates damages on claims in order to save money. However, Electric does seem to pay out on all claims. 

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