Old electrical wiring, cheap appliances, and power outages – what causes the most property damage this year?

According to data from AAS “BTA Baltic Insurance Company” (hereinafter – BTA), the largest insurance claim payout this year for property damage caused by electricity-related risks reached almost EUR 50,000. Insurance indemnity was paid for a fire in a private house caused by worn-out electrical wiring. Ivo Danče, Director of the BTA Insurance Claims Department, emphasizes that this year, the most common causes of property fires due to electricity were power supply disruptions, worn-out or damaged electrical installations, and overloaded extension cords. 

Power supply disruptions and short circuits are the most common causes of fires 

Sudden power supply disruptions or even planned power outages are among the most common electricity-related risks that can cause a fire – they affect not only wires, causing short circuits, but also electrical appliances, which may stop working or catch fire. 

For example, this year, after a routine power outage, irreversible damage was caused to the heat pump compressor of a building, for which BTA paid insurance indemnity of more than €5,000. Overall, resulting from damage to electrical networks, power outages, and short circuits in electrical switchboards, residents have also suffered damage to heating equipment, alarm and lighting systems, as well as household appliances, televisions, computers, internet routers, video game consoles, etc. electrical appliances. In such cases, the amount of insurance indemnity has reached at least EUR 1,000. 

It is important to note that damage to electrical systems and appliances, short circuits, and even fires can be caused not only by power supply disruptions, but also by overloaded extension cords. As Ivo Danče explains, electricity-related risks are almost always an unexpected "surprise," which is why residents often choose to add them as additional risks to their property insurance policies. 

"Connecting multiple devices to a single extension cord for a long period of time is unsafe – it can cause sparks and ignition, especially if high-power devices are connected to a single extension cord, such as microwave ovens, ovens, and other small household appliances. High-power devices should definitely be plugged into separate outlets, and you should always make sure that the extension cords are not overloaded. It is also important to check that aluminium wires are not used in extension cords – unfortunately, cheaper solutions use aluminium wires instead of copper wires, which have lower electrical conductivity, thus reducing the stability of the power supply and creating additional risks," emphasizes I. Danče. 

If your home is flooded, have your electrical installation checked for safety 

This year, the largest insurance claim paid by BTA for property damage caused by electricity-related risks amounted to almost EUR 50,000. In this case, a fire broke out in a private house due to worn-out electrical installations, causing severe damage to the apartment. 

"There is no doubt that fires cause the greatest damage – in an instant, the owner can lose almost all of their belongings, and if the property is not insured, the financial losses that they have to cover themselves are enormous. Worn or damaged electrical wiring is one of the risks that can cause a fire, so its condition must be checked at least once every 10 years. In older homes, especially those built during the Soviet era, it is recommended to do this more often – old wires and connections have a higher risk of overheating and catching fire," notes I. Danče. 

Firefighting and flooding in apartment buildings can cause a "chain reaction" of damages. Namely, the significant amount of water that ends up in the lower apartments as a result of firefighting or flooding can damage not only furniture, ceilings, floor coverings and wall finishes, but also all electrical installations – wires, sockets, switches and, ultimately, electrical appliances connected to the mains. 

"When an apartment or a house is flooded, the damage will certainly not be only visual. Excessive moisture can cause corrosion, which means that electrical contacts can oxidize – this is usually indicated by a bluish colour. Often, damage can be hidden and invisible, so after flooding or firefighting, you should immediately contact an electrician. A specialist's assessment to identify damage is critical before restoring the power supply," emphasizes I. Danče. 

There may be more electrical risks in the kitchen 

To avoid unexpected surprises, it is important to pay attention to the visual condition of electrical appliances, sockets, switches, and wire connections on a daily basis. You should also check whether sockets and switches are giving off heat, crackling noises or odours – these can be dangerous signs of damage to the electrical installation! This is particularly important in the kitchen area, where moisture, steam, and grease generated during cooking can damage both sockets and electrical appliance connection wires. 

Electrical safety specialists recommend disconnecting appliances that are always connected to the mains and are often forgotten, such as washing machines and refrigerators, from the mains at least once a year. It is necessary to inspect and evaluate both the connection plugs and sockets – if there are visible burns, heat or a burning smell, contact an electrician immediately. In addition, if additional high-power devices such as heaters or electric car charging cables are connected to the home's electrical network, you must ensure that the existing electrical installation is capable of handling the required load – otherwise, there is a risk of a short circuit and even fire," reveals I. Danče. 

BTA specialists recommend carrying out planned electrical safety checks at least once every few years, also assessing electrical switchboards, the materials used in connections, and potential electricity losses. This is particularly important in older homes or if the property has recently undergone renovation. All electrical installations in the property should be inspected at least once a decade.