Covering what matters: Preventing home electrical fires 

Last updated on December 3, 2024
Electrical fires aren’t just a threat to your property, they’re life threatening. This danger is especially pronounced in homes with outdated wiring. Modern electrical appliances place far higher demands on home electrical systems than ever before. Some older homes can't handle this increased load. Making sure you and your family are safe is a priority to us. Learn how your home insurance covers electrical fires, and steps to prevent them.
A grey-haired couple look at the electrical fuse box in their home
Electrical fires are more common than many people realise. According to Fire and Rescue NSW, electrical faults are one of the leading causes of house fires in Australia, posing a significant risk to both your property and your safety.

Today’s homes are filled with electrical gadgets and appliances that demand more power than ever before. Modern appliances such as air conditioners, home entertainment systems, kitchen gadgets, and electric vehicle charging place a significant demand on electrical systems. 

Electrical systems installed in the past may not be able to handle today's electrical loads. With the average age of Australian homes increasing, the risk associated with outdated electrical systems also rises. According to the NSW Government, homes built before 1980s are particularly vulnerable.

Wiring can wear down and become more unsafe over time. This makes it more likely to be a hidden fire risk. You should organise an inspection, and potentially replace, electrical systems to make your home safer.

Even if you don't experience any obvious issues, old wiring can still be a risk. Here are some signs to watch for:

  • Burnt and discoloured switches: Burnt or discoloured switches could indicate overheating or electrical arcing. Discolouration around your switches or outlets serves as a visible warning sign that you shouldn't ignore.
  • Frequent blown fuses: Regularly blown fuses or tripped circuit breakers can signal overloaded circuits. This often means your electrical system is struggling to keep up with the demand.
  • Presence of rodents: Rodents, such as rats and mice, can chew through wiring.
  • Safety switches tripping without reason: this can indicate underlying electrical issues. Safety switches are designed to protect you from electrical shocks. Frequent tripping can be caused by overloading circuits, faulty appliances or aging wiring that can’t handle the current electric load. It's a sign of potential problems. 
  • Flickering and dimming lights:  can be a sign of unstable electrical connections or overloaded circuits. If your lights flicker or dim when you use certain appliances, it's a sign that your electrical system may need attention.

Most standard home insurance policies cover damage caused by electrical fires. This covers the cost to fix or rebuild your home and replace personal items damaged or destroyed by the fire. However, coverage can vary depending on the specifics of your policy.

It's important to review your policy documents or contact us. Our team can explain what is covered by your home insurance policy and any exclusions or limits that apply.

  • Buildings coverage: This covers the physical structures that make up your home, if they’re damaged in an electrical fire. This includes the house itself, garage, sheds, swimming pools, decks and built-in appliances. This cover is available under a Buildings, or Buildings and Contents policy.

  • General Contents coverage: This cover is available under a Contents, or Buildings and Contents policy. It covers things you own, or are legally responsible for, if they’re damaged or destroyed in an electrical fire. This includes furniture, white goods, and electrical appliances. However, there are policy limits on some contents items, so always check the PDS for full policy details.

  • Alternative accommodation: An electrical fire can damage your home so badly that you can't live there. This coverage, included in Buildings or Content policies, means we'll pay for you and your pets to stay somewhere for the time necessary. This can be up to a maximum of 12 months. More details can be found in your PDS.

  • Liability coverage: If an old wiring issue in your home leads to an electrical fire causing property damage or injury, and you’re found liable, your Buildings cover can help pay for the associated legal liabilities and compensation.

Even if your home hasn't shown any signs of wiring issues, regular checks are recommended to prevent electrical fires. You should include these inspections in your home maintenance schedule. This will help you find issues before they become serious problems.

It's important to have your wiring checked by a qualified electrician and avoid DIY electrical projects. Such work can be very dangerous, so a certified professional should perform it. They’ll assess the condition of your electrical systems, identify potential hazards, and recommend necessary upgrades or repairs.

  1. Schedule an inspection: Contact a qualified electrician to perform a thorough inspection of your home's electrical system.
  2. Review the report: Carefully review the electrician's report and recommendations. If they advise replacing or upgrading your wiring, take their advice seriously.
  3. Plan for upgrades: Plan for necessary upgrades if your wiring needs to be upgraded. This may involve rewiring parts of your home or replacing outdated circuit breakers.
  4. Maintain regular inspections: Make regular electrical inspections a part of your home maintenance routine. This will help catch potential issues early and ensure your home remains safe.

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

Allianz acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the lands on which we live and work across Australia. We pay our respect to First Nations Elders past and present.



Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits, and exclusions apply. Before making a decision about this insurance, consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.

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