Property Claims News You Can Use

Surge Protectors: How They Work

Wed, 07 May 2025 15:28:52 GMT

& Why They Can Fail

How Surge Protectors Work

A surge protector is a device designed to protect electrical equipment from voltage spikes. These surges can originate from:
- Lightning strikes
- Utility grid switching
- Power outages and restorations
- Large appliance cycling (HVAC systems, arc welders, etc.)

What Does a Surge Protector Actually Do?

Think of a surge protector like a bouncer at the door of a nightclub. Its job? Let the safe voltage in, and block or divert anything dangerous.

Components Inside a Surge Protector

Metal Oxide Varistor (MOV): Diverts excess voltage.

Thermal Fuse: Disconnects the MOV if it overheats.

Indicator Light: Shows if the surge protection is active.

Heavy Duty Inductors: blocks high-frequency spikes and electromagnetic interference critically, and with lightning, arc welders, etc.

VHF Capacitors: While MOVs absorb large surges, capacitors smooth out smaller, rapid fluctuations in voltage, stabilizing the power line

The key component doing this is something called a MOV —that stands for Metal Oxide Varistor . When the voltage spikes, the MOV absorbs or redirects the excess electricity into the electrical grounding system.

Basic Function:
1. Power flows through the MOV under normal voltage conditions.
2. If voltage exceeds a preset limit (e.g., 330V), the MOV becomes conductive.
3. It shunts the extra voltage to ground, preventing it from reaching your electronics.

Limitations:

Surge protectors wear out. They silently degrade after absorbing multiple surges. If the indicator light is off, the protection may be gone even if power still flows. Cheaper surge protectors, however, will show a power light on even when all the protective circuitry has completely failed.
The amount of electrical energy simply exceeds the ratings and protective capacity of the surge protector, especially with lightning.
The speed of the electrical surge-surge protectors and fuses have a rating of speed of how quickly they can respond to a voltage disturbance. Some things, such as lightning, are simply too fast.
Improper grounding -surge protectors and UPSs all depend on proper, grounded wiring in the building. Poor or missing grounding, miswiring, etc. can prevent surge protection.
Interconnected equipment- some with surge protectors, and some without, can broadcast the surge into the unprotected pieces via cabling, Internet wiring, etc.
Not all surge protectors are created equal. Some so-called surge protectors such is available at Big Box stores are little more than extension cords with minimal circuitry inside which quickly wears out.

Summation

While surge protectors may be used on electronic equipment their use is no guarantee of solid protection every time. Property claims involving these devices should be reviewed including other issues such as improper grounding, collateral damage, etc.

Like-Kind and Quality in a World of Rapid Tech Change: What Does “Replacement” Even Mean Anymore?

Tue, 01 Apr 2025 23:49:04 GMT

�� The Old Rule: Replace in Kind and Quality

Traditionally, when something breaks or becomes obsolete, you replace it with something of like kind and quality—same specs, same capabilities, same value.

But with how fast technology changes, what does that really mean today?

�� The Real Problem with "Like-Kind" in Tech

You can’t replace a 2018 device with the same model if it’s no longer made. Specs have changed. Interfaces are different. The replacement landscape is constantly shifting:

Ports disappear (RIP headphone jack ��)
New operating systems demand updated hardware
Subscriptions replace one-time licenses
AI is baked into everything

So what do you do when “the same” doesn’t exist anymore?

�� “Quality” Isn’t Just About Specs

It’s not about replacing gigabytes with gigabytes. It’s about:

✅ Functional equivalence
✅ Compatibility with current systems
✅ Value in today’s market—not yesterday’s prices

Example:
A $4,000 workstation from 2016 might now be matched by a $1,200 laptop.
Is it a downgrade—or a smarter, lighter replacement?

�� How to Make Smarter Replacement Decisions

Let’s rethink “like-kind and quality” for the real world:

Define the function first
What did the item do , not just what specs it had?
Zoom out to the system level
Will the replacement fit into your current tech ecosystem?
Evaluate modern value
If something new does more for less , that’s not a downgrade.

�� Conclusion: The Definition Needs to Evolve

In tech-heavy environments, like-kind and quality can’t mean a carbon copy of the past. It has to mean a replacement that performs the same role in the present context.

The key is flexibility with intent —matching function and value, not just part numbers.

�� Want Help Making Replacement Decisions?

If your organization needs guidance navigating replacement standards in today’s tech market, reach out to us — we can help you make sound, future-facing decisions grounded in clarity and practicality.

Smoke Damage: An Invisible Enemy to Electronics

Thu, 27 Mar 2025 15:21:03 GMT

How Smoke Damages Electronics

When most people think about equipment fire damage, they picture charred walls and burnt equipment. But one of the most overlooked — and costly — consequences of a fire is smoke damage to electronics .

Even in rooms untouched by flames, electronics can suffer catastrophic failures days or weeks after exposure to smoke. Here's what you need to know.

Smoke is more than just soot — it's a complex mixture of:

Carbon particles that create conductive bridges across circuit boards
Chlorides and acids that corrode metal contacts
Moisture and oils that attract dust and accelerate failure

These contaminants can cause:

Short circuits
Overheating
Data corruption
Intermittent or complete equipment failure

Testing vs. Replacing: What’s the Right Call?

At PHC we help adjusters and property owners make data-driven decisions.
Our forensic evaluations determine:

Whether equipment is functionally sound
If damage is progressive or repairable
The replacement value vs. restoration costs

In many cases, proactive assessment can save thousands in unnecessary replacements — or reveal hidden liabilities.

Pro Tip for Adjusters & Inspectors

Always inspect adjacent rooms or floors above a fire for electronic devices — even if they appear undamaged.
Thermal cameras and residue tests can detect hidden smoke infiltration.

Need Expert Help?

If you're handling a claim involving electronics and smoke exposure, contact us for a fast, objective damage assessment . We offer:

On-site inspections
Lab-based failure analysis
Full reporting for insurers and legal documentation

�� Schedule an Inspection or call (800)568-5865

Lightning & Equipment Damage Property Claims

l.hollingsworth@pricehollingsworth.com (Lawrie Hollingsworth) — Fri, 08 Jul 2022 15:53:10 GMT

Is it lightning or electrical surge?

First and foremost is the verification of lightning (particularly if there is exclusion for man-made current, or different limits apply). Before you spend a lot of money to have an “expert” perform a site inspection, dissemble equipment and incur a bill, here are some important points to consider:

Stage 1: Verification of Cause

If there is an exclusion for man-made or artificially generated current the very first step is to verify the presence (or absence) of lightning. The most reliable, and in our opinion most cost-effective way to do this is to utilize an accurate, reliable lightning reporting service such as CoreLogic: www.wvs.corelogic.com/strikenet This is a service that uses a nationwide array of sensors to verify the presence of lightning. This is far more accurate than simple weather reporting services which simply report the presence or absence of storms. The mere presence of a storm does not guarantee that lightning actually struck your Insured. Nor does the absence of storms guarantee the absence of lighting. If lightning is not detected for the DOL (and a reasonable time frame around the date), then lightning is NOT the cause is it time to issue a denial? Think about it- if lightning is not present, -why pay, to have a compressor torn apart for example, and a consulting bill incurred.
Once lightning is verified, it is still necessary to ascertain if that was the cause of loss. This is the point where your consultant can provide valuable assistance.

Stage 2: Establish Actual Damages

Once a covered cause is verified, it is still necessary for an accurate assessment of the reported damages, establishment of a causal link to the voltage event, and an audit of proposed repairs and replacements. Pre-existing damages, wear and tear, and damages unrelated to the reported cause of loss can all be lumped into catch-all of “lightning damage”. This is also the time that many vendors will put forth the standard lines like: everything is stressed by lightning and is now unreliable; or the old standard “ we can’t get repair parts anymore, so the Insured needs a whole new system ”. First of all, rarely is anything repaired at a component or part level anymore. Rather, a technician simply replaces an electronic circuit card. The offending “stressed by lightning” parts are gone. Secondly, the absence of repairs electrical parts needs to be verified. Many times the Service Vendor simply doesn't handle that brand therefore does not want to service it. the opt instead to replace the entire system with the brand that they sell.

Stage 3: Review Repair Estimates

Repair estimates should be based on Stage 2 above, i.e. repairs estimates should be for actual claim-related damages , once things like wear and tear, etc., have been eliminated. It may be advisable to obtain several repair estimates unless delays might drive up business interruption costs. Ask that the repair vendor retain any replaced parts in case further analysis is required. It may be advisable to retain the use of an expert to review repair bills.

Many times an experienced technical professional such as the engineers at The Price-Hollingsworth Company is needed to quickly sort through costs, perform analysis, and arrive at LKQ replacement values and appropriate repairs. Click here to discuss your lightning claims needs with a PHC professional.