Aluminum Electric Wiring and Insurance Update

During the past 12 months or so, due to the potential of fire hazard, houses with electrical aluminum wiring connected to receptacles, switches and fixtures have been uninsurable. These houses, which were built during the mid 1960′s through the 1970′s, could only become insurable, if the all the aluminum wiring was replaced with copper wiring. The cost of this retrofit averaged from $10,000 to 20,000 and for obvious reason has had a dramatic negative impact on the marketability of these houses.
As of March 16, 2011 Citizens Property Insurance Co. has approved two acceptable alternative methods for ensuring aluminum branch wiring is not a fire hazard and is insurable.
1. COPALUM Copper-to-Aluminum Pigtailing Use the special AMP (now TYCO) COPALUM connector and special tool to connect short copper wires to every aluminum wire end in the Building, reconnecting the copper to the various devices (receptacles, switches, fixtures) and splices. Due to the cost of leasing this special tool, this retrofit avagerages approximately $5,000.
2. AlumiConn An aluminum-to-copper plug that’s connected to existing aluminum wiring at each receptacle, switch and fixtures. This method requires a $3 connector at each location, total cost $1,000-2,000.
Citizens is still researching the potential for CO/ALR connectors to be considered as a third insurable alternative method. This method will require the electrician to make sure each receptacle, switch and fixture is rated for aluminum wiring, make sure the connection is secure and apply anti oxidation paste. This retrofit will average from a few hundred dollars to $1,000.
The state will encourage other insurance carriers to consider these alternatives, with the intent of lower insurance cost.

I found another great article about the aluminum wiring and how it can affect home buyers on Holly Lovett’s blog.

Congress Extends Home Buyer Tax Credit and Flood Insurance

The U.S. Senate passed two bills last evening previously passed by the House. Both bills still need President Obama’s signature to become law, but that’s expected to happen quickly.

Home buyer tax credit

The Senate passed HR 5623, which extends the mandatory closing date to qualify for the home buyer tax credit. The contract deadline does not change – homebuyers must have a contract signed by April 30, 2010 (an exception for active duty military) – but the previous closing deadline of June 30, 2010, has been extended to Sept. 30, 2010. The National Association of Realtors estimates that the approved bill will benefit more than 14,000 deals in Florida.

National Flood Insurance Program

Congress once again reauthorized a short-term extension for the National Flood Insurance Program to Sept. 30, 2010. The bill, HR 5569, makes the program retroactive to May 31, 2010, the date the program went on hiatus.

Do You Need Flood Insurance

A number of my clients are concerned about flood insurance and whether or not a home they are interested in requires them to purchase flood insurance. A good research tool that I like to direct my clients to is the website for the National Flood Insurance Program or NFIP. You can find there website here: http://www.floodsmart.gov/floodsmart/. You can enter the property address and the website will rate the flood risk, give an estimate of premium cost and get a few insurance agencies to help get you started.

Warning! Your current homeowners’ insurance company doesn’t want you to read this.

The media in Florida likes to scare people into thinking that obtaining property insurance can be a difficult and expensive endeavor. I would like to dispel this myth. While insurance rates from the big name insurance companies tend to be a much higher in Florida and other coastal states that are hit by hurricanes, there are many insurance brokers trying to fill in the void by offering affordable homeowners insurance policies. By grouping different types of policies and shopping around rates from various underwriters the brokers are able to bring a type of package deal that will definitely save you hundreds and sometimes even thousands of dollars.
There are numerous insurance brokers in Brevard County area that can quickly give you an estimate on insuring a property. The brokers can even give you an estimate on a property that you might be interested in purchasing but you would like to know all your expenses before you purchase.
So remember if you get a letter in the mail about your insurance company dropping you or raising your rates, do everyone a favor, open the phone book and make some calls to get an insurance quote before you contact your local newspaper or news reporter to complain. It only adds fuel to the fire.