If you own an older rental property in California, you may wonder whether the insurance company will require you to replace its electrical panel.
The answer depends on the panel’s brand, condition, and the insurance company’s underwriting guidelines. A panel does not necessarily need to be replaced simply because it is old. However, if the insurance company determines that it is damaged, unsafe, or otherwise unacceptable, the owner may be required to have it serviced or replaced to maintain coverage.
Will the Insurance Company Inspect the Electrical Panel?
After issuing a rental property insurance policy, the insurance company will generally perform its own property inspection. As part of that inspection, the company may examine and photograph the electrical panel.
The inspector may look at:
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The panel’s manufacturer or brand
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Its overall condition
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Evidence of rust, corrosion, or scorching
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Missing covers or exposed wiring
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Improper or overcrowded breakers
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Visible electrical hazards
The inspection is performed for underwriting purposes. It helps the insurance company determine whether the property meets its eligibility and safety requirements.
What Happens if the Panel Is Unacceptable?
If the insurance company finds the electrical panel unacceptable, it will generally notify the insured in writing. The notice may require the property owner to have the panel professionally serviced or completely replaced within a specified period.
The owner will normally need to provide proof that the work was completed. Depending on the company, acceptable proof may include:
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A paid invoice from a licensed electrician
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Photographs of the repaired or newly installed panel
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A signed electrical inspection report
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Permit documentation, when applicable
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Confirmation that the required corrections were completed
It is important to respond by the deadline shown in the insurance company’s notice. Failure to complete the requested work and provide satisfactory proof could result in cancellation or nonrenewal of the policy.
The insured should carefully review the notice before starting any work. If the insurance company specifically requires replacement, simply having the existing panel inspected or serviced may not satisfy the requirement.
What Electrical Panel Brands Are Unacceptable?
Insurance-company guidelines vary, but many carriers consider the following electrical panel brands unacceptable:
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Federal Pacific
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Zinsco
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Magnetrip
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Challenger
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Sylvania
If an insurance inspection identifies one of these brands, the company may require the panel to be replaced by a licensed electrician, or risk cancellation of coverage.
Is the Age of the Panel the Deciding Factor?
Not always. An electrical panel does not automatically become unacceptable when it reaches a particular age.
The insurance company may also consider:
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The panel’s manufacturer and model
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Its amperage and capacity
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Its physical condition
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The type and condition of the wiring
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Whether electrical modifications were properly completed
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Whether the property has permitted electrical upgrades
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Whether the panel contains improperly installed components
An older panel that is in good condition and acceptable to the insurance company may not need to be replaced. Conversely, a newer panel could still require attention if it is damaged or was installed improperly.
Make Sure Your Rental Property Meets Insurance Requirements
An insurance company will generally conduct its own inspection after a rental property policy is issued. If the electrical panel does not meet the company’s guidelines, the insured may be required to have it serviced or replaced to avoid cancellation or nonrenewal.
Responding quickly and keeping proper documentation can help prevent a correctable electrical issue from becoming a larger insurance problem.
Roberti’s Insurance Agency helps owners of single-family rentals, duplexes, triplexes, and fourplexes compare landlord insurance options throughout California, with a particular focus on Southern California. If you aren’t sure about what type of insurance you may need, please read our related blog post: Landlord Insurance vs. Homeowners Insurance in California: What’s the Difference?
If you have any questions regarding insurance on your rental property, please reach out to us so that we can assist.
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Insurance eligibility and electrical requirements vary by company, property, and policy. This article provides general information and is not a substitute for an inspection by a licensed electrician or a review of a specific insurance company’s underwriting requirements.
