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(opening the circuit connection) when encountering a short circuit in an over-current event. This would lead to multiple hazards such as damaged equipment, burned-up wiring, and fires. Also, circuit breakers


to not stop the flow of current when switched the Underwriters


were frequently found to


the “Off” position, leading to potential injury or death by electrocution. They’re infamous for their breakers failing to meet


Laboratories’ safety


requirements or to trip during an electrical overload, which can lead to overheating and, you guessed it, fire hazards. The Consumer Product Safety Commission issued an official warning about these panels in 2012.


• Challenger Electrical Equipment and Eaton/Cutler- Hammer Panels: These panels aren’t much better. As they age, the materials used in these panels can degrade, making them prone to overheating under normal operating conditions. Overheating causes


cyclical expansion and


contraction of the bus bars, creating a gap between the bus bar and breaker and consequent electrical arcing, which, in some cases, has caused a meltdown of the panel components. Challenger had a recall in 1988 for 15- and 20-Amp type HAGF single pole ground-fault circuit interrupter, also known as a GFI. Eaton BR breakers are Underwriters Laboratory listed to replace Challenger breakers.


• Murray Panels: The Murray brand has been phased out and replaced by modern Siemens load center products. The Consumer Products Safety Commission issued


a policy could be canceled until the association can prove the panels have been replaced with approved modern ones. If that happens, an association might find itself forced into a less desirable, non-admitted, and significantly more expensive surplus market line of insurance.


Whose Problem Is It? Insurance Industry Sees increased Risk of Loss


Who is responsible for what? If the electrical panel is the homeowner’s maintenance responsibility, why should the association have to do anything? Insurance companies don’t care who’s responsible;


their concern is focused on


a loss covered under the association’s policy. So, whether it’s an association or owner responsibility, the carrier wants verification that the risk of fire is minimized and that everyone is protected. If a claim for a loss occurs because of an outdated panel, insurers are not going to check your CC&Rs – they’re going to check if the community is compliant with their risk reduction requirements.


Why Insurers are Cracking Down


You might be wondering, why the sudden crackdown? A few things have shifted in the last several years:


a


recall of their breakers, panels, and meter combos that were manufactured from June through August 2010, due to “a spring clip that can break during normal use, leading to a loss of force to maintain a proper electrical connection in the panelboard.” Murray panel breakers can be replaced with Eaton branded breakers.


In short, these panels are made from materials found to be unsafe years after installation with designs that do not meet electrical safety standards. As the reliability of these panels decreases over time, the risk of fire and electrocution increases due to their inability to handle contemporary electrical demands. Home electrical loads from air conditioning, ovens, electric vehicles, e-bikes, and an increase in other electrical devices put a strain on all older panels since they were not designed for these increased continuous loads. Simply put, these unsafe panels are not equipped for today’s world and need to be replaced.


Many California-admitted insurance carriers have begun


classifying these panels as uninsurable. They’ve moved beyond friendly recommendations and now require the replacement of these panels if associations want to maintain their insurance coverage. Some insurers refuse to grant extensions, meaning


24 March | April 2025


• Increased Payouts: Natural disasters across the country led to massive insurance payouts totaling more than 15.3 billion in the reinsurance industry in 2023. With their reserves for insurance losses


drained, California admitted


carriers,


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