Uninsurable Electrical Panels: A Critical Insight for Property Management Companies

May 10, 2024 | Panel Upgrade

Mario Castillo Electric is familiar with the role of property managers and landlords and the complexities they deal with in keeping properties safe and compliant. New insurance rules have pointed out a major problem for property management firms and individual landlords in California, particularly around Long Beach, Carson, Cerritos and the surrounding areas. Existing old electrical panels can no longer be insured and property managers are turning to Mario Castillo Electric to retrofit electrical panels to ensure they provide residents’ insurable, safe, and compliant electricity.

Understanding Uninsurable Electrical Panels

Electrical panels are crucial for distributing power throughout a building, acting as the system's heart. But, not all panels are safe. Some, like those made by Challenger, Federal Pacific (FPE Stab Lok panels), GTE Sylvania, and Zinsco, are known to be hazardous and are often rejected by insurance companies due to risks of overheating, arcing, sparking, and even fires.

The main issue with these panels is that they were designed or made when safety standards weren't as strict as they are now, or they contain components that don't meet today's safety codes. This makes them likely to fail and poses serious safety hazards.

The Need for Multi-Meter Panel Upgrades

Given these safety issues, insurance companies now require upgrades to these panels to provide coverage for commercial properties. Specifically, upgrading to a 60-amp sub-panel is becoming a standard requirement for compliance and insurability.

Multimeter panel upgrades not only ensure compliance with modern safety standards but also significantly enhance the electrical efficiency and capacity of a property.

Implications for Property Management

For property management companies, understanding and addressing the issues related to uninsurable electrical panels is crucial for several reasons:

Insurance Coverage: Without upgrading these outdated and dangerous panels, properties may not be eligible for insurance coverage, exposing the property management company and property owners to significant financial and legal risks.
Risk Mitigation: Proactively upgrading electrical panels as part of a larger risk mitigation strategy helps prevent potential disasters, safeguarding both the property's physical assets and its residents.
Compliance: Keeping up with California’s city, state, and insurance regulations is a fundamental aspect of property management. Ensuring all electrical systems are up to code is a critical component of this compliance.

Compliance and Safety Solutions

To tackle this issue, start by contacting Mario Castillo Electric to assess the electrical panels on your properties. If we find any high-risk panels, we will offer a strategic plan to replace them quickly. It's important to work with professional electrical services that focus on electrical panel safety and upgrades - and understand how to meet compliance with the correct retrofitted system. Mario Castillo Electric has experience with a number of panel upgrade projects from condominiums to multi-property implementation.

Property managers can also lean on Mario Castillo Electric to learn about electrical panel standards and what makes a panel uninsurable. Knowing the insurance requirements for commercial properties will help you manage this process in partnership with Mario Castillo Electric more effectively.

Get in Touch With Mario Castillo Electric for Solutions to Uninsurable Electrical Panels

Mario Castillo Electric is a reputable and experienced company in Long Beach, Carson, Cerritos and the surrounding areas - that specializes in addressing the challenges posed by uninsurable electrical panels. With our extensive knowledge, expertise, and state-of-the-art equipment, we can assess your property's electrical systems and provide tailored solutions to ensure compliance and insurability.

Don't let uninsurable electrical panels put your property at risk. Contact Mario Castillo Electric today for a comprehensive assessment and professional solutions to keep your property safe, compliant, and insurable.

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Before & After: Examples of Uninsurable Multi-Meter Circuit Breakers

Mario Castillo Electric has experience in repairing and upgrading electrical panels to prevent costly issues on properties, saving property managers and landlords more money in the long run and helping maintain the property's investment value.

The pictures of the real-world multi-meter electrical panel upgrades the Mario Castillo Electric team has completed are shown below. The before circuit breaker photos are examples of those types of electrical panels that will not be insured by insurance companies. The after sample of examples are the upgrades installed by Mario Castillo Electric.