The artificially generated electrical current peril does provide limited coverage. It excludes the things most susceptible to power surges, such as the electronic components of appliances, equipment, and computers and which, as you note, are the most likely items to be damaged. However the remaining parts of the equipment are covered. Say a power surge sets the stereo system on fire. The electronic components will not be covered since they were destroyed by the power surge, but the outside case, knobs, dials, etc. would be covered due to loss by fire.

Granted, that's not a lot of coverage, but it is some.
And if the stereo components melt into the mahogany cabinet, the damage to the cabinet would be covered as well. It's just the very sensitive electrical components that aren't covered because they're so easy to damage and very susceptible to power surge in event of a storm.