Is Your Old Electrical Panel Putting Your Home Insurance Coverage at Risk?

Summary:

• Outdated electrical panels may fail to meet modern safety standards or be a fire hazard, especially in older homes. Brands like Zinsco and Federal Pacific are well-known for having design flaws that can make your breaker box arc or overheat.
• Thousands of residential electrical fires occur annually, and with wildfires occurring across California more often, insurers are hyper-aware of the risks. Your outdated panel may become more than just a safety concern—it could also jeopardize your coverage.
• Insurance companies are starting to crack down on outdated electrical systems. Putting off an upgrade could result in policy cancellations, increased premiums, rejected claims, or even liability issues.
• Attempting to DIY an electrical panel upgrade is dangerous and not recommended. Always hire licensed electricians for this kind of work.
• Don’t wait for an emergency or ultimatum to push you into action. Having your panel upgraded before you have a problem tells your insurer you’re serious about risk management, which may help keep your rates down.

Your electrical panel is the central hub for all circuits in your home—so it needs to be up-to-date. Modern panels are engineered to safely handle the higher power draws of newer devices without overheating, sparking, or starting a fire.

Old electrical panels may struggle to keep up with these increases in demand. They may have serious defects or develop issues like loose connections, corrosion, or faulty breakers that make them a serious fire hazard.

Insurance companies are well aware of these safety concerns. In some cases, they may refuse you panel coverage or even suspend your homeowner’s insurance until you upgrade. Caccia Plumbing can help you upgrade your old electrical panel and keep your family safe.

The Dangers of Old Electrical Panels

Electrical fires cause an average of 32,000 house fires every year in the United States. Some of these incidents are related to faulty outlets, but outdated electrical panels also play a role in many cases.

This is especially true here in California—where older homes are more likely to still be relying on older panels that don’t meet modern safety standards.

The dangers of keeping an old electrical panel in operation are significant. Outdated or faulty units greatly increase your risk for the following fire risks:

• Power surges
• Box overloads
• Other malfunctions

According to FEMA, residential electrical fires caused 185 deaths, 850 injuries, and nearly $1.49 billion in financial losses for homeowners in 2022 alone. Tragically, many of these losses are preventable with the right safety measures in place.

The impacts of a residential fire don’t always stop at the end of your property, either. In 2024, CAL Fire determined that the Nixon Fire started at a privately owned electrical panel. It burned through over 5,000 acres of land before firefighters got it under control.

Specific Brands to Avoid or Replace

Generally speaking, the older your electrical panel, the greater the hazard. But your risk for a fire may be even higher if you have a panel from Zinsco or Federal Pacific—we’ll explain why.

Note: these are not the only kinds of old panels that might be dangerous. See “Which electrical panels are ineligible for insurance coverage?” in the FAQ at the end of this post for more.

Federal Pacific

Federal Pacific (FPE) electrical panels are considered a fire hazard because their breakers can fail to trip appropriately when they detect a problem. This can cause the panel or wiring to overheat, resulting in a fire at the box or behind your walls.

These panels often have:

• Faulty breakers: The breakers in FPE panels can be defective and may not interrupt the flow of electricity when there’s an overload or short circuit.

• Overheating: The Stab-Lok breakers in most FPE panels have design flaws that cause them to become loose and overheat, causing arcing or starting a fire.

• Weak materials: The materials used to construct the breakers may be weak, making them less likely to detect an issue and trip.

• Panel bus design: The panel bus design in FPE panels doesn’t ensure that individual circuits are on opposite poles, which can lead to overheating and shock hazards.

If you have an FPE panel, you should have it inspected for issues right away. Give our licensed electricians a call for help replacing it with circuit breakers that won’t let you down.

Zinsco

Zinsco panels are so outdated by today’s safety standards, some insurance providers just won’t write policies for them anymore. Many have design flaws that significantly raise your risk for a fire or damage to the breaker box itself.

The most common issues include:

• A faulty aluminum breaker clip: The aluminum clip that attaches the breaker to the bus bar can expand and contract with heat, causing poor contact with the bus bar.
• Arcing: Arcing can create a “welding effect” that melts the breaker’s metal and plastic construction.
• Overcurrent or short-circuit: The breaker can melt to the bus bar and lose the ability to trip, raising the risk for power surges and fires.
• Bus bar plating deterioration: Over time, the bus bar plating on these panels can deteriorate, wearing down connections and greatly increasing the risk of a fire.
• Manufacturing defects: Zinsco panels may have dangerous manufacturing defects and often don’t meet modern standards for safety.

If you have a Zinsco panel in your home, reach out to us for an evaluation. Our electricians can help you identify whether the breakers have melted to the bus bars or if you need to replace it.

Related: How to Know if Your Panel Needs to Be Upgraded

Old Electrical Panels Can Negatively Impact Your Wallet

Knowingly keeping an outdated or faulty panel in your home isn’t just dangerous. It can also cost you thousands of dollars in unnecessary spending— and what you pay to recover or rebuild after a fire breaks out is really just the beginning.

If you knowingly put off an upgrade:

• Your insurance premiums might increase.
• Insurers may refuse to cover you altogether.
• Your existing policy could be canceled.
• If a panel fire spreads, you could be held liable for the damage.

According to Morris & Garritano, an independent insurance agency based in California, carriers are already starting to re-evaluate coverage for homeowners who need to upgrade. Even the California FAIR Plan—often considered a last resort—has refused to provide extensions after issuing correction notices to homeowners. They reportedly canceled one individual’s policy, telling them to reapply with proof of compliance once they were done.

Insurers Are Already On High Alert

The insurance industry is shifting dramatically in California. With providers like State Farm scaling back or ending coverage for natural disasters like wildfires and earthquakes, now is the worst possible time to give them another reason to be concerned about fire risks.

The fact that the Nixon fire started at an electrical panel only drew more attention to the issue of electrical safety in residential homes. Insurers are responding by requesting inspections, replacements, and upgrades in older homes more often.

Having Caccia Plumbing inspect or upgrade your electrical panel will greatly reduce your chances for an electrical fire, but it isn’t just about safety—it’s also about protecting your insurability in a market that continues to fluctuate.

Electrical Panel Requirements for Home Insurance

Most insurers who operate in California have strict requirements for electrical panels, especially in older homes. Both the panel and circuitry must be up to NEC and local standards, but that’s the bare minimum.

They may also regulate:

• Panel type: If the home has an outdated panel from a brand like Zinsco, Federal Pacific, Sylvania, Pushmatic, or Challenger, you might need to upgrade first.
• GFCI and AFCI protection: Most insurers require ground-fault and arc-fault protection in high-moisture areas, like kitchens and bathrooms.
• Amperage requirements: Insurance policies for older homes often require minimum amperage standards for the main electrical panel (usually 100 AMPs or higher).

Nearly all policies contain at least one clause holding the homeowner responsible for electrical panel maintenance and upgrades. If they discover you knew about a problem, but didn’t take action, they may use it as an excuse to cancel your policy or increase your premiums.

To stave off risks like these, it’s in your best interest to have your panel inspected for issues at least once per year. This might save you money on your premiums, but it will also make your home a safer place for your loved ones.

Related: What Does an Electrical Inspection Include?

How Electrical Panel Upgrades Work

If you’re ready to upgrade your old electrical panel, you’re in the right place! Our electricians have years of experience working with residential systems and updating them to meet modern safety standards. Here’s what you can expect if you decide to move forward with an upgrade:

• Panel assessment: An electrician will closely inspect your existing panel for manufacturing defects, corrosion, and loose connections.

• Evaluation of needs: We’ll test your overall system load (AMPs) and use the data to determine whether you need a 100, 150, or 200 AMP panel.

• Panel selection: We’ll help you explore your options and choose a more safe, modern panel that meets safety standards.

• Breaker selection: We’ll identify the proper size and type of breakers for your new panel—and ensure they provide adequate overload protection.

• Circuit labeling: We’ll label all of your circuits for easy identification during the upgrade process and after the installation is done.

• Obtaining permits: In most areas of California—including San Mateo—you’ll need to apply for a residential electrical service upgrade permit before starting any work. We can handle this for you.

• Professional installation: Our electricians will fully install your new upgraded panel, connect all wiring, and test your system to ensure it’s ready to use.

Ready to get started? Don’t wait until a fire breaks out or your insurance company forces your hand. Reach out to us to schedule an assessment and learn about your options.

Related: Advanced EV Charger Installation: Charge Your Future at Home

What You Should Know Before You Upgrade

Electrical work can be extremely dangerous. Unlike flipping or replacing a breaker, you should never attempt to handle a panel upgrade on your own—even if you feel confident in your own abilities. The amount of electricity moving through your circuitry and panel is more than enough to cause serious injury or death, which is why only a licensed electrician can do this work.

Hiring a properly licensed electrician will ensure that your panel is upgraded by someone with a strong understanding of the following:

• • Panel space requirements: NEC standards require 3 feet of clear space in front of your panel, 30 inches of clearance on either side, and unobstructed access from floor to 6’6. If your new panel won’t fit, it may need to be relocated to somewhere else in the home.
  • Accessibility specifics: NEC guidelines also state that your panel needs to be easy to reach and not located in a tight space, like a closet. It also shouldn’t be placed near high-moisture areas like kitchens or bathrooms. This is another good reason to relocate.
  • Extending existing wires: In the event that relocation becomes necessary, we might need to extend your wiring to compensate for the extra distance to your new panel.

• Wire labeling: All circuits in your box should be labeled on both ends with clear information about what they control—for example, “kitchen outlets.” We can help you with this step if your labels are missing or worn off.

• Temporary disconnection: For safety, power to your home must be turned off completely during the panel upgrade. It will need to remain off until the process is complete (usually less than a day). We’ll help you coordinate with PG&E on this.
• Weatherhead replacement: Depending on the condition of your service connection (the lines that connect your home to the main power grid), you may need a new weatherhead installed on your roof. This will protect your connection from moisture.

Our trained electricians know how to handle all of the steps in the upgrade process safely, seamlessly, and—most importantly—safely. Whether you choose to stay home while we work or use the power outage as an excuse for an outing, you can trust us to get the job done right.

Related: Should You Upgrade Your Electrical Panel When Converting to Electric?

How To Replace Your Electrical Panel

For a safe, reliable electrical panel upgrade, contact the professionals at Caccia Plumbing. Our fully licensed and insured electricians will help you explore your options and install a replacement panel that’s up to code and compliant with stringent insurance standards.

And if you aren’t sure if you need an upgrade? Give us a call anyway—we’re happy to come out and take a look or make recommendations.

Putting off electrical panel problems until your insurance company intervenes can be costly and unwise. But knowing your home and family are safe? That’s priceless. Contact Caccia Plumbing online or call (650) 442-1470 for faster service.

Frequently Asked Questions About Holiday Plumbing Disasters

Does homeowners insurance cover electrical problems caused by outdated panels?

It depends on the problem and whether you were aware of it in advance. Most providers will approve coverage as long as the panel was installed correctly, even if it is outdated. If your insurer issued you a correction notice before the incident happened, they may deny your claim.

Which electrical panels are ineligible for insurance coverage?

Every company and policy is different, so it’s best to check with your agent or read your policy carefully—don’t forget the “fine print!” Insurers in California are more likely to take issue with  panels from certain brands or installations with known issues and manufacturing defects.

Here are a few examples:

• Zinsco
• Federal Pacific
• Sylvania/Sylvania GTE
• Pushmatic
• Challenger
• Old-school fuse boxes
• Any panel using Stab-lok breakers

If you aren’t sure what kind of electrical panel you have, it’s easy to find out. Check the inside of the cover—the door—for a sticker, brand name, or logo with the manufacturer’s name. If you don’t see anything, look along the edge of the frame instead.

How much does it cost to upgrade an electrical panel?

Every installation is unique, and the exact cost will depend on whether you need your panel relocated or require additional upgrades—like a new weathehead—along the way. We want you to feel good about leaving the job in our hands, so always provide a full upfront quote.

In general, you can expect most simple installations to start at around $7500. More complicated replacements can cost up to $25000, but this is usually only in special circumstances.

If you’re concerned about affordability, we offer flexible and easy-to-use payment options to help ensure your upgrade fits into your budget. The average monthly cost for homeowners who decide to finance falls somewhere around $200-400 per month.

What should I do if my insurance provider requires an electrical panel upgrade?

With all the changes happening in the insurance industry in California, it’s easy to feel overwhelmed when you get a correction notice or request to upgrade your panel. The idea of potentially paying even more for premiums—or losing your coverage—can be a lot to take in.

First, try not to panic. In all but a few very rare cases, insurers won’t simply cancel your policy outright or hike up your premiums without giving you time to make changes. While they’re looking out for their bottom line, they also have a vested interest in keeping your family and home safe.

At Caccia Plumbing, we’re here to help make the upgrade process as efficient and stress-free for you as possible. Give us a call to determine the best course of action.

Will upgrading my electrical panel reduce my insurance premiums?

Maybe—it depends on your policy and provider. Some providers may offer a small discount for any reasonable step that lowers your risk of an electrical fire, including panel upgrades. Others have policy clauses that give them the right to increase your rates if you have an older panel with a known defect, fault, or issue. It’s best to check with your agent for specifics.

While saving on your premiums is a great benefit, that doesn’t mean you should wait until an opportunity comes up. Upgrading your panel can help protect your home and family from dangers like electrical fires. Taking action could even save lives.