Why Insurance Companies Don’t Like Aluminum Wiring in Houses

Mar 30, 2017

We were recently contacted by owners of a St. Petersburg condo building (which they were trying to sell) with an electrical problem they had an offer on their property, but an inspection revealed aluminum wiring throughout the condo which threatened to blow the deal.

The insurance company refused to insure the property unless the aluminum wiring was rewired or was made safe. This is a problem which often threatens real estate deals, small and large.

So, how do you fix aluminum wiring?

Is Aluminum Wire Safe?

Why do insurance companies require the replacement of aluminum wiring in houses and condos? The answer is simple: it’s a safety hazard. This old style wire tends to deteriorate over time at its connections, thus causing overheating and other fire hazard issues. Aluminum wiring was popularly used in the 1960s and tends to loosen its connection over time as well, thus making it 55 times more likely to reach “fire hazard conditions” as opposed to copper which is the standard wire we use today.

AlumiConns: Safe Solution for Aluminum Wiring in Houses/Condos

If you have aluminum wiring in your house, you won’t necessarily need to rewire your entire home to meet safety requirements as enforced by most insurance companies.

AlumiConn connectors are devices used to adapt the existing aluminum wire to newly inserted copper wire. (See picture above the AlumiConn is the purple connector.) The old aluminum wiring is inserted into the device and tightened down with a set screw. New copper wire is then inserted into the other side of the AlumiConn and tightened down. The copper wire is then attached to the outlet or switch. These AluminConns ensure that no loosening or deterioration occurs and is an approved method by insurance companies as well as the Consumer Product Safety Board.

Using these methods, we were able to save our client (the condo owner/seller) from spending thousands on a whole house rewire and in doing so provided a safe alternative to their aluminum wiring problem.

Still have questions? Get in touch by phone at 727-755-1805, through the form on this page or via email at info@gulfstarelectric.com.

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