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Electrical Issues in Your Home Inspection: When to Worry

Electrical findings range from a missing outlet cover to a fire hazard panel. Here's how to tell which is which.

📅 Updated February 2026⏱️ 10 min read

Almost every home inspection identifies electrical issues. Most are minor — a GFCI outlet that needs resetting, a missing cover plate, reversed polarity on an outlet. But some electrical findings are genuine safety hazards that affect your decision to buy.

Safety Hazards: Take Seriously

Electrical Panel Identification Guide Visual guide to identifying dangerous electrical panels: Federal Pacific and Zinsco are fire hazards requiring replacement, knob-and-tube wiring is outdated, and modern 200A panels are safe Electrical Panel Identification Guide Know which panels are safety hazards FEDERAL PACIFIC STAB-LOK ⚠️ HAZARD Breakers may fail to trip Connected to house fires Replace: $2,500-$5,000 Era: 1950s–1980s Insurance may refuse coverage Action: REPLACE IMMEDIATELY ZINSCO SYLVANIA / GTE ⚠️ HAZARD Breakers fuse to bus bar Common in CA 1970s homes Replace: $2,500-$5,000 Era: 1970s–1980s Insurance surcharges likely Action: REPLACE IMMEDIATELY CERAMIC KNOBS + TUBES ⚠️ OUTDATED No ground wire Fire risk if insulated over Rewire: $10K-$30K Era: Pre-1950s Many insurers won't cover Action: Get specialist eval MODERN 200A Square D / Siemens / Eaton ✅ SAFE AFCI/GFCI protection 200-amp capacity No action needed Era: 1990s–present Full insurance coverage Action: None

Federal Pacific Electric (FPE) Panels

FPE Stab-Lok panels, manufactured from the 1950s through 1980s, have a documented history of breakers failing to trip during overloads. The CPSC investigated these panels, and multiple fire experts have connected them to house fires. Replacement cost: $2,500-$5,000. Many insurance companies won't cover homes with FPE panels or charge significant surcharges.

Zinsco Panels

Similar concerns to FPE — breakers can fuse to the bus bar and fail to trip. Common in California homes from the 1970s. Same replacement cost and insurance implications.

Knob-and-Tube Wiring

Original wiring in pre-1950s homes. When intact and not modified, it can be safe. But it has no ground wire, can't handle modern electrical loads, and becomes dangerous when insulation is added over it (common in retrofitted attics). Full rewire cost: $10,000-$30,000. Many insurance companies won't cover homes with active knob-and-tube.

Aluminum Wiring

Used in some homes from 1965-1975. Aluminum expands and contracts more than copper, creating loose connections that can overheat and cause fires. The fix is usually "pigtailing" — connecting short copper segments at each outlet and switch. Cost: $50-$100 per connection, typically $2,000-$5,000 for a whole house.

Moderate Concerns: Negotiate

The disclosure connection: The TDS asks about "any known electrical issues." A seller with an FPE panel who checks "No" is either ignorant (unlikely if they've ever had an electrician or insurance inspection) or not being forthcoming. If you discover the seller knew about electrical hazards, your negotiating position is significantly stronger.

📚 Related Guides

→ Deal Breakers: When to Walk Away → Home Inspection Repair Costs → Common Issues by Home Age → How Much to Ask For

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