If you’re experiencing flickering lights, you may be wondering if electrical panel replacement is covered by homeowners insurance. The answer typically depends on the reason the panel needs to be replaced. Since your electrical panel is the heart of your home’s power system, it’s important to know when insurance might step in, and when it won’t.
The electricity that enters your house is controlled by your electrical panel, sometimes referred to as a breaker box. In order to prevent overheating and possible fires, it safely distributes power to multiple circuits and trips breakers when too much electricity attempts to pass through. Having a properly operating panel is essential as your home’s electrical needs increase, particularly with contemporary appliances. That’s why it’s important to know what situations might lead to a panel replacement—and whether your insurance company will cover the costs.
Common Reasons for Electrical Panel Replacement
Homeowners may need to replace their electrical panels for a few reasons. Most panels last between 25 and 40 years, so age is a significant factor. The panel may not be able to handle the electrical demands of today if your house is older. Frequent breaker trips, buzzing noises, or even obvious rust inside the panel could point to your electrical panel failing. These are indicators that an upgrade is necessary.
Certain panels, such as the Zinsco or Federal Pacific Electric (FPE) Stab-Lok models, have a track record of safety problems. A major fire hazard could arise if they fail to trip during an overload. These panels are deemed too dangerous by many insurance companies, who frequently demand that homeowners replace them on their own dime in order to keep their coverage. If you’re unsure about the type of panel in your home, a local electrician in Northampton can help you identify and assess your system.
When Insurance Might Cover Electrical Panel Replacement
Electrical panel replacement is usually only covered by homeowners insurance when the damage is caused by a specific, unexpected incident, or “covered peril.” You will probably be covered, for instance, if a lightning strike results in a power surge that damages your panel or if a tree falls on your house during a storm and damages the panel. In a similar vein, the panel might also be covered if water from a burst pipe floods it. In these situations, you would submit a claim, cover the expenses with your insurance, and pay your deductible.
Normal wear and tear, obsolete machinery, or a panel upgrade for increased capacity are usually not covered. You’ll probably have to pay for an electrical upgrade if your panel is unable to supply your home’s expanding electrical requirements, such as adding a hot tub, an EV charger, or large kitchen appliances. Homeowners frequently choose to install a new panel for that reason, even if their insurance does not cover it. If you’re thinking about adding more lighting to your home, whether it’s indoor upgrades or exterior walkway lighting, a properly rated panel is key. For example, a lighting installation in Allentown, PA often requires ensuring your electrical system can handle the additional load safely.
Upgrades for Modern Electrical Demands
Ultimately, whether insurance helps with an electrical panel replacement depends on the cause. If it’s from a sudden, unexpected event, you might have a case. But if it’s age, outdated technology, or capacity issues, it’s usually on you. When in doubt, consult a qualified electrician from GB Electric and review your homeowners insurance policy carefully to avoid surprises down the line.