Your home’s electrical panel is the command center for all things powered. You probably call it the breaker box. Its job is to cut power instantly when a circuit gets overloaded, preventing electrical surges and devastating fires. Because this box is connected to home safety, your insurance company is very interested in it.
The age, brand, and condition of your electrical panel can directly impact your home insurance policy in a few ways. These factors can affect your premium rates, the type of coverage you can get, and sometimes, your ability to get a policy at all.
Your Panel’s Age Is a Factor
An older home often comes with an older electrical panel. If your panel is more than 30 years old, it was built for a time with far fewer electrical demands. Think about it. Your home now powers multiple large screens, computers, kitchen gadgets, and charging stations. An old panel was never designed to handle that kind of load.
For an insurance company, an old panel is a big warning sign. These vintage panels have a higher rate of failure and lack modern safety features. This increases the chance of an electrical fire, which is one of the most serious and expensive claims an insurer deals with. They may charge you a higher premium or require you to get a new one before they will cover you.
Certain Brands Are an Automatic Red Flag
Some electrical panels are known for being problematic. If a home inspector or insurance agent sees certain brand names in your home, the conversation changes immediately. These panels have a well-documented history of failure. Their circuit breakers can fail to trip when a power surge happens. This is their only real job, and they fail at it. This defect makes them an extreme fire hazard.
If you have one, you should think about scheduling an electrical panel upgrade before you can get coverage. It’s a risk they are not willing to take.
Not Enough Power (Amperage) Is a Problem
Amperage is a measure of the total amount of electricity your home can use at one time. Older homes from the mid-20th century might have panels with just 60 amps of service. For modern living, that is simply not enough power.
A panel with insufficient amperage is constantly pushed to its limits. This continuous strain puts stress on the entire system, causing circuits to overheat. To an insurer, a 60-amp service is a clear sign of an outdated and overloaded electrical system, which translates to a high fire risk.
The modern standard is at least 150 or 200 amps. An insurance company may require an upgrade to this level before renewing or issuing your policy.
The Fuse Box
Before circuit breakers became the standard, homes used fuse boxes. Instead of a switch you can flip back on, a fuse contains a small wire that melts and breaks the circuit permanently when overloaded. You then have to replace it.
The biggest danger with fuse boxes is human error. It is very common for homeowners to replace a blown fuse with one that has the wrong amperage rating. Putting a 30-amp fuse into a circuit designed for 15 amps allows double the current to flow through wires that can’t handle it.
The wires can melt inside your walls and ignite a fire. Insurance companies know this is a frequent and dangerous mistake. Consequently, they see fuse boxes as an unacceptable liability and will often demand a modern electrical panel installation.
Visible Damage or Faulty Wiring
Sometimes, the danger is right out in the open. Take a look at your panel. Do you see any rust on the metal box? That indicates water has gotten in, which is a disastrous mix with electricity.
Do you hear a faint buzzing or crackling sound? That could be a loose connection creating an electrical arc. Any scorch marks around the breakers are also signs of a serious problem.
An insurance inspector who spots any of these issues will immediately flag your electrical system as a major hazard. Obvious damage or sloppy, disorganized wiring shows that the system is not safe. The company will likely deny coverage until you have the system evaluated and repaired by a licensed electrician.
We’ve Got Your Back with Panel Upgrades and Installations
Don’t let your electrical panel become a barrier to protecting your home. Grasser Electric provides complete electrical panel installations to solve these exact problems.
We want to make certain your home is safe and your insurance coverage is exactly where it needs to be. That starts with covering the basics. We can inspect your current panel, identify any red flags that insurance companies look for, and give you a straightforward plan to get it right. Your safety and peace of mind are the top priority.
