Aluminum Wiring in Homes & What to Consider when Purchasing a Home
Many homes constructed in the 1960s and 1970s were built using aluminum wiring. It is more susceptible to being brittle, and a poorer conductor compared to copper. It may corrode over time if exposed to moisture causing it to expand and contract. That leads to the wires potentially loosening and overheating. All those factors may lead to a greater risk of fire.
While homes with aluminum wiring are not necessarily unsafe, there are implications to property insurance that homeowners and potential home buyers should consider.
Right now, please be aware that a limited number of insurers may not provide insurance on homes with aluminum wiring, regardless of its condition. Before other insurers will offer coverage on a home, most now require a licensed electrical contractor to complete an electrical home compliance report.
Does aluminum wiring need to be replaced?
Aluminum wiring has been grandfathered in by the National Building Code of Canada, so it does not need to be replaced.
What do insurers require?
Before insurers will offer coverage on a home, most will now require a licensed electrical contractor to complete an electrical home compliance report. Some insurers have specific checklists that should be completed, while others will accept the contractor’s report so long as it includes the following:
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Confirmation of the amperage size of the home’s electrical service;
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Confirmation the main panel, grounding, and bonding are compliant;
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Confirmation the correct circuit protection is used;
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The percentage of aluminum wiring in the home and whether it meets standards; and
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A complete list of deficiencies as well as a list of recommended actions to remediate deficiencies.
A limited number of insurers may not offer coverage on homes with aluminum wiring, regardless of its condition. Contact your licensed insurance broker prior to hiring an electrician to determine specifically what will be required in your circumstance.
How could this impact my decision to buy a home?
The existence of aluminum wiring does not mean a home is uninsurable or that it is ‘devalued’ in any way. So long as the electrical system is verified as safe, aluminum wiring is just another consideration in any home purchase. If you are purchasing a home with aluminum wiring, though, you may want to consider:
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The added cost of obtaining a licensed electrician’s report;
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The nature of renovations you may eventually want to undertake; and
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Your ability to switch insurance providers or modify coverage in the future.
If you are purchasing a home with aluminum wiring & need a Electrical inspection, contact Brown Electrical Contracting
Have questions how to navigate the home buying process, contact Bird Realty
Jill Bird 306-221-1350
Cam Bird 306-221-0654
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