Insurance carriers are continuously working to enhance safety and reduce risk, particularly when it comes to preventing fire-related losses. One area of growing concern is the presence of outdated electric panels in homes and commercial properties, which pose significant safety hazards.
The Role of Electric Panels in Property Safety
Electrical panels are vital components of any structure’s electrical system. They house circuit breakers that trip automatically in response to power surges, short circuits, or overloads, thereby preventing electrical fires. However, as panels age, their reliability diminishes, increasing the risk of malfunctions and fire hazards.
Many older panels were constructed using materials and designs that no longer align with modern safety standards. Insurance providers have recognized the potential dangers and are urging property owners to take proactive measures to mitigate risks. As a result, many insurers now classify outdated panels as uninsurable.
Electric Panels – Manufacturers of Concern
Certain panel brands have been identified as particularly unsafe and may be deemed ineligible for insurance coverage, including:
- Zinsco
- Federal Pacific (FPE)
- Sylvania/Sylvania GTE
- Pushmatic
- Challenger
- Any Stab Lok or fuse-based panels
Among these, Federal Pacific breakers are considered one of the most hazardous, with failure rates estimated between 25-65%, often failing to trip during power surges. Zinsco and Challenger panels also pose a significant safety risk, particularly in the event of an electrical surge.
Insurance Industry Response
In recent months, insurers have become increasingly stringent about outdated panels, requiring replacements to maintain coverage. For example, the California Fair Plan recently denied an extension request for a panel replacement that was backordered, resulting in policy cancellation until proof of compliance was provided.
As a result, many residential and commercial property owners are opting to replace their outdated panels to ensure both safety and continued insurance coverage.
Recommended Actions for Property Owners
To maintain insurance eligibility and protect their properties, homeowners and business owners should take a proactive approach by:
- Consulting a qualified electrician to inspect their panel.
- Replacing outdated or unsafe panels with modern, compliant alternatives.
- Keeping documentation of any electrical panel upgrades for insurance verification.
Need Assistance?
At 2911 Contractors, we stay informed on industry trends to help our clients navigate changes in insurance requirements. While not all insurers have adopted these policies, the trend is growing.
If you’re uncertain whether your panel poses a risk, contact our office for expert guidance on necessary steps to ensure compliance and maintain coverage.
Protecting what matters most is our priority, and we’re here to assist you every step of the way.
