Type 1 protectors safeguard your house against surges generated from external sources such as thunderstorms and lightning strikes. Contrary to this, Type 2 surges are installed in your breaker panel and offer protection against surges generated around the breaker. Type 3 panels are different from both above-mentioned devices and are located at the point of contact; they can act as your additional defense against harmful surges. They mostly include power strips and UPS.