When purchasing home insurance , there are several factors that insurance companies consider to determine your premium. One key factor that can significantly affect your rates and even influence whether your property is accepted for coverage is the condition of your home's wiring. Electrical wiring is a critical element of your home, ensuring the safety and functionality of your appliances, lighting, and more. But if your home’s wiring is outdated or improperly installed, it could increase your risk for electrical fires, power surges, or other damage — all of which could result in higher insurance premiums or potential denial of coverage.

In this blog, we'll explore how household wiring affects insurance pricing and why some properties in places like Tempe , Phoenix , Scottsdale , Tucson , Gilbert , and Chandler may face challenges securing coverage.

Electrical wiring serves as the backbone of your home's energy distribution system. It powers everything from your lights and heating system to kitchen appliances and electronics. But over time, wiring can deteriorate due to age, wear and tear, or poor installation, which can create serious risks.

Outdated Wiring: Homes built before the 1960s may still have outdated wiring systems, such as knob-and-tube wiring or aluminum wiring. These systems are much more prone to fires or short circuits and are often flagged by insurance companies as high-risk. Overloaded Circuits: In homes with modern appliances but old wiring, the electrical system may struggle to handle the increased load, which could cause the system to overheat, leading to potential fire hazards. Improper Installation: Poorly installed electrical wiring can lead to several problems, including faulty connections, exposed wires, and damaged circuits. These issues raise the likelihood of an electrical fire or equipment failure.

Insurance companies view homes with these risks as higher liabilities , which means they either offer higher premiums or, in some cases, refuse to insure the property altogether. When the wiring is up to code and properly maintained, it can reduce the chances of such risks, leading to more affordable and accessible coverage.

When an insurance provider evaluates a property, they look at the potential risks involved in covering that property. As electrical hazards pose a real danger to both life and property, insurance companies use the condition of the home's wiring as one of the determining factors for pricing. Here's how it affects your insurance:

Increased Risk: Older or improperly maintained wiring can increase the likelihood of electrical fires, appliance damage, and even power outages. Higher risk means higher premiums. Upgraded Wiring: If you’ve recently upgraded the wiring in your home, you may be eligible for discounts. Newer systems that meet current safety standards are less likely to cause electrical hazards, making the home a lower-risk investment for insurers. Type of Wiring: Homes with outdated wiring systems, such as aluminum or knob-and-tube wiring, may be declined outright for coverage by some insurers, while others may offer coverage at a much higher premium. Inspection and Documentation: If you’ve had an electrician inspect and certify your home’s wiring, this could help reduce your rates. Insurers are more comfortable offering coverage if you can show that your electrical system is safe and up to code.

In cities like Tempe, Phoenix, Scottsdale, Tucson, Gilbert, and Chandler, insurance agents are keenly aware of the risks posed by faulty or outdated wiring. Many older homes in these areas, especially those built before the 1970s, may still have older wiring systems that insurers are wary of.

Here are some reasons why insurers might decline a property based on its wiring:

Non-Compliance with Safety Codes: If the wiring doesn’t meet local or national electrical safety standards, it poses an unacceptable risk to the insurer. This could result in the denial of coverage. High Repair Costs: For homes with significantly outdated or faulty wiring, the cost to bring the electrical system up to code could be prohibitively expensive. Insurance companies may prefer to avoid the financial risk altogether. Previous Claims : If the property has experienced electrical fires or frequent power surges due to poor wiring in the past, an insurer may be hesitant to provide coverage, or they might raise the premiums significantly. Unreliable Documentation: Sometimes, homeowners fail to provide proper documentation of recent electrical upgrades or inspections. Without this, insurance companies are left to assume the wiring may still be a risk.

If you're located in Tempe, Phoenix, Scottsdale, Tucson, Gilbert, or Chandler, and you're worried about the condition of your household wiring, there are steps you can take to improve the situation:

Upgrade Your Wiring: Consider having an electrician update your home’s wiring system. Replacing old aluminum or knob-and-tube wiring with modern copper wiring can significantly reduce risk and improve insurability. Get an Electrical Inspection: Have a licensed electrician inspect your electrical system for any issues. A certified inspection report can show your insurance provider that your home is safe. Document Upgrades: If you’ve recently upgraded your home’s wiring, keep documentation of the work. This can help you negotiate lower rates or qualify for coverage from insurers that may otherwise have declined your property. Work with a Local Agent: Local insurance agents , like those at Riseson Insurance , have experience with the specific risks and regulations in your area. They can help you find the best insurance policy based on the condition of your home’s wiring and recommend steps to ensure your property meets the necessary safety standards.

At Riseson Insurance , we understand how the condition of your home’s wiring can affect your insurance pricing and coverage. If you're in Tempe, Phoenix, Scottsdale, Tucson, Gilbert, or Chandler, our team can help guide you through the process of improving your home's electrical safety and finding the right insurance coverage at an affordable price.

Contact us today at 602-460-5470 to speak with one of our experienced agents. We’ll help you protect your home with the best possible coverage and give you peace of mind knowing your wiring and other risks are properly managed.

The Importance of Electrical Wiring in Home Safety

How Household Wiring Affects Insurance Pricing

Why Some Properties Are Declined Based on Wiring

What Can You Do to Improve Your Home's Insurability?

Why Choose Riseson Insurance?

• Outdated Wiring: Homes built before the 1960s may still have outdated wiring systems, such as knob-and-tube wiring or aluminum wiring. These systems are much more prone to fires or short circuits and are often flagged by insurance companies as high-risk.
• Overloaded Circuits: In homes with modern appliances but old wiring, the electrical system may struggle to handle the increased load, which could cause the system to overheat, leading to potential fire hazards.
• Improper Installation: Poorly installed electrical wiring can lead to several problems, including faulty connections, exposed wires, and damaged circuits. These issues raise the likelihood of an electrical fire or equipment failure.

• Increased Risk: Older or improperly maintained wiring can increase the likelihood of electrical fires, appliance damage, and even power outages. Higher risk means higher premiums.
• Upgraded Wiring: If you’ve recently upgraded the wiring in your home, you may be eligible for discounts. Newer systems that meet current safety standards are less likely to cause electrical hazards, making the home a lower-risk investment for insurers.
• Type of Wiring: Homes with outdated wiring systems, such as aluminum or knob-and-tube wiring, may be declined outright for coverage by some insurers, while others may offer coverage at a much higher premium.
• Inspection and Documentation: If you’ve had an electrician inspect and certify your home’s wiring, this could help reduce your rates. Insurers are more comfortable offering coverage if you can show that your electrical system is safe and up to code.

• Non-Compliance with Safety Codes: If the wiring doesn’t meet local or national electrical safety standards, it poses an unacceptable risk to the insurer. This could result in the denial of coverage.
• High Repair Costs: For homes with significantly outdated or faulty wiring, the cost to bring the electrical system up to code could be prohibitively expensive. Insurance companies may prefer to avoid the financial risk altogether.
• Previous Claims : If the property has experienced electrical fires or frequent power surges due to poor wiring in the past, an insurer may be hesitant to provide coverage, or they might raise the premiums significantly.
• Unreliable Documentation: Sometimes, homeowners fail to provide proper documentation of recent electrical upgrades or inspections. Without this, insurance companies are left to assume the wiring may still be a risk.

• Upgrade Your Wiring: Consider having an electrician update your home’s wiring system. Replacing old aluminum or knob-and-tube wiring with modern copper wiring can significantly reduce risk and improve insurability.
• Get an Electrical Inspection: Have a licensed electrician inspect your electrical system for any issues. A certified inspection report can show your insurance provider that your home is safe.
• Document Upgrades: If you’ve recently upgraded your home’s wiring, keep documentation of the work. This can help you negotiate lower rates or qualify for coverage from insurers that may otherwise have declined your property.
• Work with a Local Agent: Local insurance agents , like those at Riseson Insurance , have experience with the specific risks and regulations in your area. They can help you find the best insurance policy based on the condition of your home’s wiring and recommend steps to ensure your property meets the necessary safety standards.