Does Home Insurance Cover Rewiring? A Complete Guide

Home insurance is a type of property insurance that protects your home and its contents from various risks, such as fire.

But does home insurance also cover rewiring, which is the process of replacing old electrical wiring in your home?

Rewiring a home
Rewiring [PHOTO COURTESY OF
Clovered.com]

The answer depends on the cause and condition of the wiring

In general, home insurance will cover electrical rewiring if the damage is caused by a sudden and accidental event.

These are examples of covered perils in a standard HO-3 home insurance policy, which is the most common type of policy in the U.S.

However, home insurance will not cover rewiring if the damage is due to wear and tear, age, or improper maintenance.

These are examples of excluded perils in a standard HO-3 policy, which means that the insurer will not pay for the repair.

For example, if your home has aluminum or knob-and-tube wiring, which are outdated and hazardous types of wiring that were used in homes built between 1960 and 1980, your insurer may deny your claim for rewiring.

This is because these types of wiring are considered to be high-risk and prone to deterioration and corrosion.

RELATED: Does Home Insurance Cover Flooring? What You Need to Know

How to insure homes with old electrical wiring

If your home has aluminum , you may face some challenges when it comes to getting home insurance.

Some insurers may refuse to insure your home at all, while others may charge you higher premiums.

Fixing electric wires [PHOTO COURTESY OF DK ELECTRONICS]
One way to overcome this problem is to have your home rewired with safer and more modern materials.

This can improve the safety and efficiency of your electrical system, as well as lower your home insurance rates.

However, rewiring can be a costly and time-consuming project that requires hiring a professional electrical contractor.

Another option is to look for insurers that specialize in high-risk or older homes.

These insurers may be more willing to offer you coverage for your home with aluminum  wiring.

For example, they may require you to have a licensed electrician inspect and certify your wiring every few years.

The bottom line

Home insurance can cover rewiring if the damage is caused by a sudden and accidental event that is covered by your policy.

However, if the damage is due to wear and tear, age, or improper maintenance, you will have to pay for the rewiring out of your own pocket.

Additionally, if your home has aluminum or knob-and-tube wiring, you may have difficulty finding affordable and adequate home insurance coverage.

Therefore, it is advisable to have your home rewired with safer and more modern materials if possible.

When should you rewire your house?

Rewiring a house is a major project that involves replacing the old and faulty electrical wires and components with new ones that meet the current safety standards and power demands.

Rewiring in a old house
Homeowners Insurance and Electrical Wiring [ Electrical issues]
Rewiring a house can improve the safety, efficiency, and functionality of the electrical system.

There are different factors that determine when you should rewire your house, such as the age, condition, and type of the wiring.

According to some sources, experts recommend rewiring a house—at least in part—every 25 to 30 years.

Leave a Comment