The First 10 Things to Do When You Lose Power (2026 Guide)

TL;DR: Losing power means acting fast on safety (food, pipes, generators) and just as fast on documentation, because a power outage that damages a rental property can qualify for a casualty loss deduction under §165 of the tax code. Beginning in 2026, that deduction — made permanent by the One Big Beautiful Bill — expands beyond federally declared disasters to include state-declared disasters, and qualified disaster losses skip the usual 10%-of-AGI reduction while using a raised $500 floor instead of $100. Photos, receipts, and timestamps taken while the power is still out are what make the deduction defensible later.

_Last reviewed: July 2026 · 8 min read_

The power goes out and the first instinct is to wait it out. For a landlord, waiting costs money — spoiled refrigerator contents, a frozen pipe, a sump pump that stops running during a storm. What you do in the first hour, and what you write down in the first 48, decides whether any of that loss is just gone or whether it becomes a deduction on next year's return.

Okoniq Property Hub keeps a running log of outages, repairs, and receipts by property, so when tax season arrives the documentation is already organized instead of scattered across texts and photo rolls.

What are the first things to do the moment the power goes out?

Check whether it's just your property or the whole block, then protect food and equipment before anything else. Look at your utility's outage map or call the number on your bill — that call, timestamped, is your first piece of documentation. Unplug sensitive electronics and appliances to avoid surge damage when power returns, and keep the refrigerator and freezer closed; food generally stays safe for about 4 hours in a closed fridge and up to 48 hours in a full freezer, though you should still use a thermometer once power is back rather than guess.

If you're running a generator, keep it outside and away from windows — carbon monoxide from generators exhaust is one of the most common post-outage injuries, and it happens indoors or in garages, not out in the open. If tenants are in the unit, a short check-in call or text establishes that you were responsive, which matters later if a tenant disputes habitability or asks about rent credit.

How do you protect the property and tenants during a prolonged outage?

Beyond the first hour, the priority shifts to preventing secondary damage — frozen pipes, a failed sump pump, or spoiling HVAC systems. In cold climates, a sustained outage in winter can freeze supply lines within hours if the furnace has no backup power; letting faucets drip and opening cabinet doors under sinks buys time. If the property has a sump pump and the outage coincides with heavy rain, a battery backup or a plan to manually bail water is the difference between a wet basement and a flooded one.

Communicate with tenants about what's being done and when power is expected back, based on the utility's estimate. This isn't just tenant relations — it's part of the audit trail. Auditors and insurance adjusters both want to see that you responded promptly and reasonably, not that damage sat unaddressed for days. Okoniq's audit-trail checklist covers exactly what that kind of contemporaneous record should look like.

What should you document in case this becomes a tax-deductible casualty loss?

Photograph everything before you clean up or repair anything — spoiled food, water damage, a burst pipe, the state of the breaker panel. Timestamps matter more than photo quality. Keep every receipt: ice and coolers bought to save food, a plumber's emergency call, a restoration company's invoice, even the hotel receipt if the property became unlivable. A photo on a phone counts; the IRS accepts scanned or photographed receipts as long as they're legible and you can produce the original format if asked, which the digitizing receipts guide explains in more detail.

Also keep the outage record itself — the utility's confirmation number, any public notice about a storm or grid failure, and, if applicable, the state or federal disaster declaration. That declaration is the piece that determines which set of rules applies.

When does a power outage actually qualify as a casualty loss on your taxes?

A power outage qualifies as a casualty loss only if it causes property damage that's sudden, unexpected, and unusual — not general wear, and not just the temporary loss of use. Spoiled food alone typically isn't a casualty loss in the tax sense; a frozen and burst pipe, storm damage to the electrical system, or flooding from a failed sump pump usually is, assuming it meets the requirements of §165 and you can show your adjusted basis in the damaged property.

The rules changed for the better starting in 2026. The One Big Beautiful Bill made the casualty loss deduction permanent, and expanded eligibility beyond federally declared disasters to include state-declared disasters as well, as long as the other §165 requirements are met. For a qualified disaster loss specifically, the usual 10%-of-AGI reduction doesn't apply, and the per-event floor is raised to $500 instead of the old $100. Whether your outage-related damage clears that bar depends on the cause, the declaration status of the event, and your basis — read the full breakdown in casualty loss deduction for rental property before you file, and confirm the current thresholds on IRS.gov since these figures are tied to legislation that can be revised.

What if you already filed and forgot to claim a prior outage-related loss?

You're not locked out of a deduction just because you already filed. If a past outage caused damage you didn't claim, an amended return can pick it up within the standard window for amending — the amended return guide walks through the process and what documentation the IRS expects to see attached.

FAQ

How long can rental property go without power before it's a habitability issue?

There's no fixed federal number — it's governed by state and local landlord-tenant law and often by lease language, so check your state statute and lease terms rather than assume a standard timeframe.

Is lost rental income during an outage itself deductible?

No. A casualty loss deduction covers damage to property, not the income you didn't collect while a unit was uninhabitable; lost rent is a separate issue often handled through insurance business-interruption co