Explosion Insurance

What Does Explosion Insurance Mean?

Explosion insurance provides coverage for property loss resulting from rapid nuclear or chemical reactions that produce heat, light, noise, and shock waves, commonly referred to as explosions. This type of insurance is typically included as an extension of a fire policy. However, it does not cover losses associated with pressurized instruments, pipes, and steam boilers, which require separate insurance policies.

Insuranceopedia Explains Explosion Insurance

Since explosion insurance provides extended coverage, it typically comes at an additional cost. In addition to covering explosions, it may include protection against less common risks, such as property damage from vehicles, airplane crashes, and riots, as well as more typical hazards like smoke and weather damage. While explosion insurance is primarily aimed at commercial industries, homeowners can also benefit from this coverage. Most standard homeowners policies already cover fire, so it is worth checking whether your policy already includes fire and explosion damage before purchasing a separate endorsement. Given that home explosions can lead to significant losses, often amounting to tens of thousands of dollars, it may be prudent for residences at higher risk to obtain this insurance. Common sources of such explosions include aerosol cans, oil furnaces, and propane grills. When shopping for this type of coverage, comparing quotes from several of the best homeowners insurance companies can help you find a policy that includes explosion protection at a reasonable price.