Certain residential electrical systems, installed primarily between the 1960s and 1970s, utilize a specific metal as a conductor. Insurers often view these systems as carrying a higher risk of fire compared to copper wiring due to factors like expansion, contraction, and improper connections. Consequently, securing financial protection for properties with this type of electrical setup can present unique challenges, leading to higher premiums or, in some cases, denial of coverage.
The prevalence of this wiring coincided with rising copper prices, leading to its adoption as a cost-effective alternative. However, over time, concerns emerged regarding its long-term safety and reliability. Insurers factor these concerns into their risk assessments, influencing policy availability and pricing. Understanding the historical context and potential hazards is crucial for homeowners and prospective buyers. Remediation, such as pigtailing with copper or a complete rewire, can mitigate these risks and improve insurability.
