Your home is often your biggest investment. People will pay for insurance to cover their automobiles, boats, and a variety of other items. But, buying an insurance policy for the home is a very challenging prospect. There are so many issues to consider. Homeowners often don’t realize there are subtle nuances that become important when working with an insurance agent. So many problems can arise that are unexpected. Weather-related issues tend to be a common destructive force that should be covered in an insurance policy. Fire and catastrophic events are also generally included in an insurance policy.
One problem that may go overlooked is the potential for electrical issues. Interestingly enough, most insurance policies do not cover this issue. The more important factor becomes what you would be willing to pay! If your home is older it is likely that the insurance will cost more. That is because the wiring is older and more susceptible to problems that could result in damage to a home.
Homeowners often don’t realize that it is recommended to replace wiring in the home every ten years or so. After that amount of time, there is the tendency for wiring to show wear and tear in different ways. For instance, you may begin to smell a burning odor when multiple electric appliances are in use. Too, lights may flicker and dim if the electric wiring becomes overloaded. An insurance assessor will do a walk-through of your home as the policy is being developed and look at such things as the outlets and whether they are two or three pronged and whether the plugs or outlets spark when cords are plugged in.
If you experience these types of problems it is recommended you contact a licensed electrician for an evaluation of the wiring, outlets and electric panel in your home. In fact, most insurers require an inspection and assessment of the electrical wiring in your home prior to issuing a policy that covers electrical issues. There are certain types of electrical wiring, primarily Knob/Tube and aluminum wiring, that were cheaper to install and if they are still used in your home, your premium will be higher.
Finally, if you have a homeowner’s insurance policy that covers wiring it is a good idea to inquire if the policy covers the cost of replacement. To learn more contact J.M. Mullen Electrical Services.