Why Are Insurance Companies  Requiring Panel Upgrades?

Why Home Insurance Companies Care About Your Electrical Panel

Insurance companies assess risk before offering coverage. If something in your home significantly increases the chances of an accident, fire, or claim, your insurer may raise your premiums—or worse, deny coverage altogether.

There are several electrical panel brands that are very common in older homes throughout the greater Los Angeles area that have been recalled or “blacklisted” by insurance providers due to documented issues including overheating, malfunctioning, or failing to shut off power in dangerous situations. These issues can lead to electrical fires, one of the leading causes of home damage. As a result, some insurance companies may refuse coverage or charge higher premiums for homes with these hazardous panels. 

The Most Common Outdated Electrical Panels That Raise Insurance Red Flags

Not all old electrical panels are dangerous, but some have a well-documented history of defects and failures. Here are the ones most likely to cause insurance issues:

Federal Pacific Electric (FPE)/ Stab-Lok Panels

• Studies show that up to one in four of these panels fail to trip breakers when overloaded

Zinsco Panels

• Known for breaker malfunctions that allow electrical current to continue flowing even when switched off

Sylvania/GTE Panels

• Rebranded versions of Zinsco panels with similar design flaws.

• Breakers can fail to trip during overloads, leading to potential fire hazards

Challenger Panels

• Known for manufacturing defects that can lead to overheating and electrical fires

Pushmatic Panels

• Older panels that use push-button breakers instead of traditional switches.

• Breakers often become stiff and fail to reset, increasing the risk of electrical hazards.

• No longer manufactured, making replacement parts hard to find.

Other Aging Panels That May Be Risky

• Panels over 40 years old may not meet modern electrical codes.

• Signs of rust, scorch marks, or buzzing sounds indicate potential hazards.

• Many outdated panels no longer meet safety regulations and should be replaced.

Can Your Home Insurance Be Canceled Due to an Old Electrical Panel?

Yes. Many homeowners find out the hard way—either when applying for insurance on an older home or during a renewal process. If an inspector identifies a hazardous panel, your insurer may require you to replace it or risk policy cancellation. Some insurers will simply refuse coverage upfront.

Even if your policy isn’t canceled, a high-risk panel could lead to significant premium increases. What might seem like a “small” issue can cost you hundreds or even thousands in added insurance costs over time.

What to Do If Your Electrical Panel Puts Your Insurance at Risk

Get a Professional Electrical Inspection

A licensed electrician from CPN Electric can assess your panel’s safety and determine if an upgrade is necessary. Never attempt electrical panel work yourself—it’s dangerous and requires expertise.

Upgrade to a Modern, Safer Electrical Panel

CPN Electric specializes in expert electrical panel upgrades, ensuring your home is equipped with the latest, safest technology. Whether you're replacing an outdated panel or upgrading to a modern smart panel, our team provides reliable, professional service to enhance the safety and efficiency of your electrical system.

Learn about the costs of a panel upgrade here

Fill out this form to get a personalized quote for your panel upgrade

Final Thoughts: Protecting Your Home, Family, and Insurance Coverage

Your electrical panel plays a crucial role in keeping your home safe. If it’s outdated, it’s not just a fire risk—it could also be costing you more in insurance or even putting your policy at risk.

Don’t wait until it’s too late. If you’re unsure about your panel, take action today by consulting with a professional electrician at CPN Electric and checking with your insurance provider. A safer home means lower risks, lower costs, and greater peace of mind for you and your family.

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