Why Electrical Inspections Matter for Insurance

How Insurance Companies Evaluate Your Home's Electrical System

When the insurance company reviews your home, they look at the age of your wiring, the type of materials installed, and whether your system meets current code standards. Homes built before 1970 get extra scrutiny because many still have aluminum wiring or knob-and-tube systems that increase fire risk.

Insurers use inspection reports to decide whether to issue a policy, renew coverage, or require upgrades before they'll protect your home. They want to know if your electrical panel can handle modern loads, if circuits are properly grounded, and if any amateur work has created hazards they'll be liable for. Some companies won't insure homes with certain wiring types at all. Others will cover you, but charge higher premiums until you fix the problems.

You won't always know what red flags they're looking for until you get a denial letter or a renewal notice with new conditions. That's why getting an electrical inspection before you shop for insurance or renew your policy gives you control over the conversation. You can take care of problems on your timeline instead of scrambling to meet an insurer's deadline.

Wiring Issues That Can Get Your Policy Canceled or Non-Renewed

Aluminum wiring tops the list of deal-breakers. Aluminum was installed in a lot of homes during the 1960s and 1970s. It expands and contracts a lot more than copper, which creates loose connections that overheat and start fires. Most insurers either refuse to cover homes with aluminum wiring or require you to replace it before they'll issue a policy.

Knob-and-tube wiring is another system that sends underwriters running. This ancient method uses ceramic knobs and tubes to route wires through walls and ceilings. It lacks grounding and can't handle modern electrical loads. If your home still has active knob-and-tube circuits, expect your insurance company to demand removal before they'll renew your coverage.

Outdated electrical panels also trigger cancellations. Federal Pacific Electric and Zinsco panels are known for failing to trip during overloads. Insurance companies know this. If your home has one of these panels, you'll need to replace it with a modern breaker box before most insurers will take you on as a client.

Why Unpermitted Electrical Work Creates a Liability Nightmare

Unpermitted work is a code violation and a coverage trap. When you hire someone to install new circuits, upgrade your panel, or add outlets without pulling permits, you're creating a paper trail problem. Insurance companies can deny claims if they discover that unpermitted electrical work caused or contributed to a fire or other damage.

Permits exist to make sure electricians in Duncan, SC follow code and that inspectors verify the work is safe. When you skip the process, you have no proof that the work was done correctly. If a fire starts in an area where unpermitted work was performed, your insurer can argue that the damage resulted from substandard installation. They'll investigate, pull records, and if they find no permit on file, they can refuse to pay your claim.

Selling your home becomes harder, too. Most buyers require a clear title and proof that all major work was permitted and inspected. If you can't provide that documentation, you'll either need to get the work inspected retroactively or accept a lower offer to compensate for the buyer's risk.

What Insurers Look for When You File a Fire or Damage Claim

When you file a claim for fire or electrical damage, your insurance company sends an adjuster to investigate the cause. They examine your electrical system to determine if negligence, poor maintenance, or code violations played a role. If they find evidence that outdated wiring or improper repairs contributed to the damage, they can reduce your payout or deny the claim.

Adjusters check for overloaded circuits, improper wire gauges, missing junction box covers, and DIY repairs that violate code. They'll compare your system to what was documented when you first bought your policy. If you made changes without notifying your insurer or getting an electrical inspection to verify safety, they have grounds to question whether you maintained the property.

How a Current Inspection Report Strengthens Your Coverage Position

A current inspection report proves you're maintaining your home and taking reasonable steps to prevent losses. Insurance companies reward proactive homeowners because they file fewer claims. When you provide an inspection report that shows your system is safe, insurers see you as a lower risk.

Some companies offer premium discounts if you complete an electrical service upgrade or provide documentation that your system meets modern standards. Others will approve coverage on older homes they'd normally decline if you can show that electricians have inspected and certified the wiring. The report becomes leverage in your negotiations.

Are You Ready to Protect Your Coverage?

Don't wait for your insurance company to demand an inspection. Schedule an electrical service with Mr. Electric today and get the documentation you need to protect your policy, your home, and your family. We identify code violations, outdated wiring, and safety hazards that insurers care about, and we provide detailed reports you can share with your insurance company. Contact us now to book your inspection and take control of your coverage.