Problems with Homeowners Insurance
Homeowners Insurance Issues like Electrical issues (Click on question)
Can I get homeowners insurance with aluminum wiring?
Will I be able to get homeowners insurance with a Sylvania or Zinsco Electric Panel?
Is an old roof a problem with Homeowners Insurance?
Is Polybutylene Piping a problem for my homeowners Insurance?
Will I be able to get homeowners insurance with an ungrounded electric outlets?
Additional Information: Understanding common homeowner insurance issues can help homeowners better protect their properties.
Some Home Insurance issues with homes
Houses built from 1965 – 1975 Electrical Issues
Aluminum Wiring (see Citizens Insurance response to Aluminum Wiring)
Pushmatic Panels
Zinsco
Houses built from 1975 – 1985
Federal Pacific Stab-Lok Panels
Zinsco Sylvania Panels
Polybutylene Piping (PB Piping) (see Citizens Insurance response to PB Piping)
Houses built from 1980 – 1990
Polybutylene Piping
Houses built from 2001 – 2008
All of the issues noted below may cause the homeowners insurance companies to refuse coverage on a home, thus causing a problem when it comes time for closing because the Mortgage company requires the home to be insured. We are providing this information to help you to recognize these issues in advance, however if you have any questions, please give us a call.
Click on any of the items below to jump to that page:
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Aluminum Wiring – Home insurance issue
This is a typical homeowner insurance issue with homes built in the early 70s. The wire itself is not bad – what is bad is where the wire meets up with the receptacle. Aluminum expands when it gets hot and contracts when it cools down. Over the years this expansion and contractor makes the connection to the receptacle loose. What then happens is that the wire starts to arc because the connection is not tight and that is why it becomes a home insurance issue.
Think of your spark plugs in your cars engine. Also the wire itself starts to vibrate every so slightly but under heavy load it can get hot – really hot. It is not uncommon to open up the face place and see a black electrical box and that the wire shielding / insulation burnt right off. The issue of aluminum wiring is not a myth or just a money grab on the part of your local electrician – it is real and it is an insurance issue.
Solution: Most expensive is to replace all the wire. The least expensive is to replace all the connections with COPALUM or Alumacon connectors, Alumiconn connectors or replacing the outlets, breakers and switches with those that are designed to accept aluminum wiring. Contact your local electrician for more information and current pricing on this issue.
Stab-Lok Electric Panels
The manufacturer of Federal Pacific Stab-Lok Panels has determined that these panels and breakers have a significant failure rate and therefor it becomes a homeowner insurance issue. Failure to trip properly with overload and short-circuiting, are the basic safety defects of this panel. In over one-third of the panels tested, breakers would not trip when overloaded. The word Stab-Lok is typically on the label at the top of the panel as shown in the picture or in the middle of the second type panel.
Solution: Unfortunately the only solution is to replace the panel. Cost can run anywhere from $600 to $1200 for a 150 amp panel, depending on the location. Contact your local electrician for more information and current pricing on this issue.
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Sylvania Zinsco Electric Panels
Zinsco panel (Sylvania or GTE-Sylvania) panel testing has shown that the circuit breakers do not trip about 25% of the time when exposed to overcurrent, risking overheating, fire and other hazards, again, the reason it is a home insurance issue. The failure rate in the competition was less than 1%.
Solution: Unfortunately the only solution is to replace the panel. Cost can run anywhere from $600 to $1200 for a 150 amp panel, depending on the location. Contact your local electrician for more information and current pricing on this issue.
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Polybutylene Water Piping
Polybutylene (PB) piping is a grey pipe with copper or black press-on fittings (see picture below) that can be identified by the lettering “PB 2110” stamped on the side of the piping. The problem with PB piping is that the connections are crimped on the pipe, creating a secure connection at the time the piping is installed. Over time, chemicals in the water break down the PB plastic at the connections causing the connections to become loose and blow apart, thus allowing a full stream of water to enter the home wherever the failure occurs. Think of a garden hose running in you attic and you will understand the magnitude of the issue.
Solution: Unfortunately the only solution is to replace the piping. Costs can run from $2000 and up depending on the size and complexity of the home. Contact your local plumber for more information and current pricing on this issue.
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Chinese Drywall
Chinese drywall was imported into the US beginning in 2001, with the heaviest usage between 2004 and 2008. As of May of 2014, it was found that chemicals found in Chinese drywall can corrode pipes and wiring.
The US Agency for Toxic Substances and Disease stated that “The modeling data suggests that levels of hydrogen sulfide and other sulfur compounds found in the Chinese manufactured drywall were sufficiently high to result in the health effects people have been reporting”, which includes headaches, irritated and itchy eyes, dizziness, sore throat, difficulty breathing, persistent cough, bloody or runny nose, sinus infections and asthma attacks. Although you may be able to find labeling on the back of the drywall in the attic that says made in China, the only way to tell if the drywall is the “bad” type is laboratory testing.
The indications of Chinese drywall are:
1) Metal corrosion or blackening of metal items (wiring and copper piping) within the walls or protruding from the walls.
2) Rotten egg smell within the home
3) Frequent failures of AC units and other appliances and electronics
Solution: Unfortunately the only solution is to replace all the drywall and subsequent damages in the house.
More information can be found here about the health effects of Chinese drywall
What is Chinese Drywall and why is it important? (Wikipedia)
Roofs
Lately the insurance situation in Florida has become difficult. As an example, they are real particular about the age of roofs. In our experience, according to most of the major insurance companies, in Florida the typical life expectance for shingles are as follows:
3-tab Asphalt Shingles 15 years
Architectural Asphalt Shingles 15 years
Metal 20 years
In general, insurance companies will typically not cover a roof with less than 3 years of life left. Additionally, for wind mitigation inspections in certain cities, the current trend is toward keeping records for only 10 years. The problem with this policy is that the State of Florida Wind Mitigation Form requires the Permit Application date and a picture of the permit for any roof installed after March 1, 2002.
Unfortunately when this information is no longer retained after 10 years, it becomes very difficult—and sometimes impossible—to provide the required information on the Wind Mitigation Form. For roofs installed in 2002 and 2003, the data no longer exists in the standard city database. However, in some cases, inspectors can locate the information in their personal or archived files. As a result, this process often takes a few extra days to determine what documentation is actually available.
Older style 2 prong outlets
According to the National Electric Code (NEC) 406.3 (D) (3) (B) 2 prong outlets can be replaced with GFCI outlets for occupant protection. This does not ground the outlet but it does make them safe for the occupants. (Click here for excerpt)