Policies for properties constructed with a specific type of electrical conductor, often installed between the mid-1960s and late 1970s, present unique underwriting considerations. This type of wiring, while initially seen as a cost-effective alternative to copper, has since been recognized for potential safety hazards, particularly related to fire risk. Coverage eligibility and rates are often impacted by its presence within a dwelling.
The significance of this wiring material stems from its propensity to loosen at connection points due to expansion and contraction with temperature changes. This loosening can lead to arcing, overheating, and ultimately, fire. As a result, insurers may require inspections, remediation measures (such as pigtailing with copper connectors or complete replacement), or charge higher premiums to offset the perceived elevated risk. Recognizing its history and potential problems is critical for both homeowners and insurance providers.
