Property · Insurance Term
Utility Services Coverage (Off-Premises Power)
Definition
Utility services coverage extends your property and business income insurance to losses caused when power, water or communications service to your property is cut off by damage away from your premises. Without it, many policies do not cover losses from an off-site utility failure.
In Plain English
Standard property forms commonly exclude losses from an off-premises utility failure. Endorsements such as CP 04 17 (Utility Services – Direct Damage) and CP 15 45 (Utility Services – Time Element) can add it back for selected services.
Direct damage coverage pays for things like spoiled food or frozen pipes caused by the outage. Time element coverage pays lost business income while service is down.
Details matter. Some versions exclude overhead transmission lines unless selected, require the outage to come from damage to utility property, and apply a waiting period.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a winter storm damages a power substation and a convenience store loses power for four days. Food and drinks worth $15,000 spoil and sales stop. With utility services coverage for power, including overhead lines, the owner may recover the spoiled stock and lost income after the waiting period, subject to limits.
Why It Matters for Texas Property Owners
Winter Storm Uri in February 2021 left much of Texas without power. TDI data show commercial property was about 10% of claims but about 53% of incurred losses. Many owners learned then whether their policies covered off-site power failures and freeze damage.
What to Watch For
- Ask whether you have utility services coverage for power, water and communications.
- Check whether overhead transmission lines are included.
- Review the limit and waiting period for the time element part.
- Ask whether a grid-wide outage without physical damage to utility property would qualify.
Common Questions
Would my policy cover spoiled food after a citywide blackout?
Only if your policy includes utility services and spoilage coverage, and the outage meets its conditions. Many policies require physical damage to utility property and may exclude overhead lines unless you select them.
Is this the same as equipment breakdown?
No. Equipment breakdown covers failures of your own equipment on site. Utility services covers interruptions caused by problems away from your property.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write