Insurance companies do not usually mandate a specific brand of electrical panel, but many will decline to cover, charge more for, or require the replacement of certain panels and wiring they consider hazardous. Obsolete panels like Federal Pacific and Zinsco, fuse boxes, and older wiring are common sticking points. Because home insurance and a mortgage go hand in hand, these requirements can have a real impact on buying, selling, or insuring a home.
Here is what to know about insurance companies and electrical panels.
Insurance policies and requirements vary by company and over time, so always confirm the specifics with your own insurer.
What insurers are concerned about
Insurers care about electrical systems because electrical problems are a leading cause of house fires. Their concern centers on equipment and wiring with a known or elevated risk, including:
- Obsolete or hazardous panels, particularly Federal Pacific Electric (FPE) Stab-Lok and Zinsco panels, which have documented concerns about breakers failing to trip
- Fuse boxes, which some insurers are cautious about
- Older wiring, such as knob-and-tube and aluminum branch wiring
- Undersized or outdated service
How insurers respond
Rather than requiring a specific panel, insurers typically respond to these concerns in a few ways:
- Declining coverage for homes with certain hazardous panels or wiring
- Charging higher premiums to reflect the elevated risk
- Requiring replacement or correction as a condition of coverage
- Requiring an inspection of the electrical system
Because policies vary, the exact response depends on the insurer and the situation.
Why this matters for buying and selling
Insurance requirements around electrical panels matter most during a home transaction. Since buyers generally need insurance to get a mortgage, a home with an un-insurable panel or wiring can be difficult to sell or finance. This is why hazardous panels and outdated wiring are common issues that surface during home sales, and why addressing them can be important for both buyers and sellers.
What to do if your panel is flagged
If your insurer flags your panel or wiring:
- Have a licensed electrician evaluate the panel and confirm what you have.
- Discuss replacement or correction, which is often the solution for obsolete panels like Federal Pacific or Zinsco.
- Keep documentation of the upgrade, which can be provided to your insurer.
- Confirm with your insurer what they require to provide or maintain coverage.
Upgrading a hazardous panel not only addresses the insurance issue but also removes a genuine safety hazard from your home.
Insurance companies generally do not require a specific electrical panel, but many decline coverage, charge more, or require replacement for panels and wiring they consider hazardous, such as Federal Pacific and Zinsco panels, fuse boxes, and older wiring. Because insurance is tied to mortgages, these requirements can affect buying, selling, and insuring a home. If your panel is flagged, a licensed electrician can evaluate it and upgrade it, resolving the insurance concern and improving safety. Always confirm the specifics with your own insurer.
Stella Electric replaces hazardous and obsolete panels for homeowners across the Baltimore area and throughout Maryland, with flat-rate pricing and no overtime charges. If your insurer has flagged your panel, we can help you resolve it. Financing is available on qualifying projects.
