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Does Homeowners Insurance Cover an Electrical Panel Replacement?

Learn More About How and When Homeowners Insurance May Cover an Electrical Panel Replacement

For many homeowners, the cost to upgrade an electrical panel is one of the more significant expenses they may face when it comes to electrical work on their home. This can make it difficult to finance these projects, even though it’s often one of the most critical updates to make to your home when it comes to safety and convenience. These challenges with payment may leave many homeowners wondering: Does homeowners insurance cover an electrical panel replacement?

At TCA Electric, we’ve replaced numerous dated electrical panels in homes throughout Vancouver. Depending on the reasons for upgrading your panel, you may be able to have some or all of the costs covered by your insurance company. 

How Much Does a Panel Replacement Cost?

The cost to replace your electrical panel can vary quite a bit, depending on both your existing panel and the panel you’re upgrading to. Here at TCA, we’ve seen the cost for this project range from $800 all the way up to $12,000—quite a substantial range. 

For more on the factors that may dictate the exact cost of your panel replacement, check out our previous blog post on this topic.

Does Homeowners Insurance Cover an Electrical Panel Replacement?

Homeowners insurance will sometimes cover an electrical panel replacement, but it typically depends on why you need one. For instance, damage to your panel or your home is more likely to be covered, while upgrading a panel to make room for more electrical devices may not be. Let’s take a look at some of the common situations that may determine your insurance coverage for a panel replacement.

Damage Due to a Flooded Basement

One of the more common situations we see where a panel replacement is necessary is following a flood that caused significant basement damage. Very frequently, this includes damage to the home’s electrical panel. Provided the resident’s homeowners insurance included protection against flooding, a panel replacement during the basement renovation will often be covered by insurance.

Similarly, this kind of coverage will typically apply if your home (and electrical panel) was damaged by a fire or from another source generally covered by your policy.

Manufacturing Errors and Recalls

Electrical panels are built to rigorous standards for quality and safety. This is because they’re a home’s first line of defense against the dangers of high voltages of electricity entering your home. Sometimes, electrical panels are put into service and later found to have a critical error in their manufacturing that causes a higher rate of failures or problems. If your home relies on one of these panels, your replacement may be covered by your insurance, or even by the manufacturer. 

Neglect, Age, or Upgrading

While there are some other situations where your homeowners insurance may cover an electrical panel replacement, there are also times where it’s very unlikely that your panel upgrade will be covered.

If your electrical panel was damaged due to poor maintenance, neglect, or damage from a source not generally covered by your policy, you will likely be responsible for the cost of replacing it. Similarly, coverage will not extend to panels that have reached the end of their expected service life, which may be anywhere from 25–50 years. 

Lastly, if you’re choosing to upgrade your panel—such as to accommodate additional appliances or devices such as a home EV charger—your insurance likely won’t cover the cost.

If You Need a New Electrical Panel, Don’t Delay!

While the potential cost of an electrical panel replacement may be higher than many other home improvements, this is not a service that should be put off. If your electrical panel is showing signs of failure or overloading, or is visibly damaged, it should be replaced immediately. This is because a damaged or malfunctioning panel can put your home and family at risk, with hazards such as malfunctioning appliances, shocks, or even fires becoming more likely.

TCA Electric is your specialist for an electrical panel upgrade in Vancouver. Our team provides expert panel replacements to ensure that your home’s first line of defense is sound, reliable, and will last for years to come. Contact us today if you’re considering a panel replacement!

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