Is your house’s electrical panel covered by your homeowners policy? Like so many things in home insurance, the answer is, “it depends.” If the electrical panel is suddenly and accidentally damaged by a covered peril like fire or lightning, then your homeowners insurance likely covers it.
But what happens if an electrical panel malfunctions because you’ve failed to maintain it properly or because it’s simply too old and is no longer safe or up to code? In that case, a claim on your policy will almost always be denied.
When does homeowners insurance cover electrical panels?
Whether or not your home insurance covers electrical panels depends on what causes the damage in the first place. Every homeowners policy covers certain perils, or events that cause losses. If the event that caused damage to your panel is covered, then your insurance company helps with your repairs in accordance with the policy’s terms.
The type of policy you have determines which perils are covered. If you have a named perils policy, then damage to your electrical panel is only when it’s caused by a peril specifically listed in your policy language.
Insurance policies with named perils coverage typically help with damage caused by:
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Fire or lightning strike.
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Windstorm or hail.
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Explosion.
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Riot or civil commotion.
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Aircraft.
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Vehicles.
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Smoke.
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Theft.
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Volcanic eruption.
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Falling object.
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Weight of ice, snow, or sleet.
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Accidental water overflow or steam.
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Sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems.
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Freezing.
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Sudden and accidental damage from artificially generated electrical current.
Open perils policies offer broader coverage because they cover any peril except those that are specifically listed as excluded. This type of coverage is much more common than named perils coverage, but you may still want to review your policy to make sure which type you have.
When does home insurance not cover electrical panels?
There are several scenarios in which insurance doesn’t cover electric panels that break or malfunction. For example, your insurer may not offer coverage or might deny a claim if:
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The panel is too old. Modern homes often require 200-amp panels, but older panels are often 100-amp systems. The difference in capacity can mean older electrical panels expose you to more risk.
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The damage was caused by an excluded peril. Some examples of commonly excluded perils include land movement, flood, power failure, and intentional loss.
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You’ve not properly maintained the panel. As a homeowner and policyholder, you’re obligated to make sure your home’s systems are in good working order. Damage caused when you fail to do so is on you, not your insurance company.
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Your house has outdated electrical wiring. Knob-and-tube wiring was common in homes until the 1940s but is now considered obsolete and unsafe, and aluminum wiring deteriorates faster than copper wiring. Both may increase a home’s fire risk.
Many insurers decline homes with knob-and-tube or aluminum writing because of the increased risk for fire. Those that don’t may charge a higher rate and ask for an inspection before offering a policy.
What types of electrical panels aren’t covered by home insurance?
Every insurance company has different guidelines as to what counts as an insurable electrical panel. However, you can be fairly certain that most insurers won’t cover electrical panels that have been recalled or that are considered out of date. Examples include:
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Federal Pacific Electric (FPE) Stab-Lok panels
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Zinsco panels, also known as GTE Sylvania-Zinsco panels
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Challenger panels made by Challenger Electrical Equipment Corp or Eaton/Cutler-Hammer
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Pushmatic
If you have one of these panels and are seeking insurance coverage, then you may need to replace it before you can get a policy.
The importance of having an up-to-date electrical panel
Electrical fires can be a threat, even if you have a brand new home, so keeping your electrical panel in good shape is essential for making your home safe. But it’s also an important part of remaining eligible for insurance coverage.
Here’s some tips on keeping your electrical panel up to date:
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Replace panels regularly. Electrical panels should be replaced every 25 to 30 years.
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Check panels regularly. Even if it’s not time to replace your electrical panel, you probably want to call a qualified electrician for service f if you see, hear, or smell any of the following:
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Frequent circuit breaker trips
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Buzzing or humming sounds
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Flickering lights
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Sparks from the panel or electrical outlets
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Burnt or hot outlets
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Frayed wiring
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Burning smell or other odors
In addition to age and signs of malfunctioning, you may also need to replace your electrical panel if you plan to install heavy electrical appliances, like electric vehicles or air conditioners, or to expand your home. Doing either increases how often you need a panel with more amperage.
Your electric panel is an essential component of your home. Not only does it control the electrical system of a home, it also protects your home’s wiring and prevents electrical shock or fire. When it’s damaged or malfunctions, you want to make repairs as soon as possible, and understanding how home insurance covers it can be a big help.
