Electric panel and insurance.

[Huiping S.]

"Aluminum wires is in the electrical panel. It is not a hazard, but insurance may not insure with aluminum wiring present". This is the panel in the laundry room with water heater and lots lines.

This is the #1 issue from a new inspection and the inspector told me.

I didn't get an chance to quote insurance yet. Can folks help me understand few questions?

1) How much will cost to replace this panel, especially Tampa area?

2) This is an old property and the seller take care it very well and didn't see any issue now. If the electricity panel will not be replaced, what are the possible consequences?

3) Will insurance refuse to insurance this property or just electricity related (everything related to electricity)?

4) Generally, when the inspector conducts the inspection, he/she will not talk so much and busy but send a report late. Who should help the buyer to understand the inspection repot, and how can a buyer know how much will cost to fix some big issues which can use for further negotiate the price or cost with the seller?

Really appreciate your input!!

Huiping

[Russell Brazil]

Aluminum wiring needs to be remediated at each outlet, switch cover and light fixture....not just at the panel.  There are a few methods to do it. Last time I dealt with the issue I used the pigtail method.  I think it cost me about $5k to do the whole house, an 1800 square foot rambler then another $2200 to change out the federal pacific panel.  Aluminum wiring was used from roughly the mid 60's to mid 70's. So a property in that age range I always check to see if it has aluminum and if its been remediated yet.  

The consequences of not fixing it are the house burning down. So what happens is as aluminum oxidizes, the oxidated aluminum causes resistance to the electricity going through it, then it heats up, and well heat causes fire.  The main places you really see it as an issue is at plugs...because as you plug things in and unplug them over years and decades, the plug and wire just get a little loose, air gets in there and the wiring oxidizes.