
Hidden electrical issues like harmonic distortion are straining household appliances and posing safety risks that could affect homeowners’ insurance rates. This phenomenon, caused by non-linear loads such as LED lights and electric vehicle chargers, disrupts the normal flow of electricity, leading to appliance failures, inefficiencies, and heightened fire risks. With AI data centers increasing local energy demand, the issue is particularly severe in urban areas.
Homeowners near these centers may face increased insurance premiums as claims for electrical fires and appliance damage rise. Insurers have not yet fully accounted for harmonic distortion in their rate structures, but the growing trend may prompt premium adjustments, exclusions, or required upgrades such as harmonic filters or surge protectors.
To mitigate the impact, homeowners should invest in modern surge protectors, inspect and update old wiring, and consider smart monitoring systems. Taking proactive measures now can help avoid costly repairs and prepare for potential changes in insurance policies.