The other instance is having a transfer switch in which you can switch between live power and a generator for backup power.
Electrical Basics 101
By Timothy Thiele, About.com
A disconnect switch is mounted on the outside of your home close in proximity to the meter on the outside of your home or power pole. The advantage of having a disconnect switch is for safety. In the event of a fire or flash flood, you can shut the power off from the outside of your home verses having to enter a burning home or a flooded basement.
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