How does cloth wiring affect homeowners’ insurance?

A homeowners’ insurance policy is one of the best insurance policies available in the insurance market
in Florida. With this special type of insurance, homeowners can protect their homes and belongings
against damage or loss caused by vandalism, theft, fire and other similar causes.

There are many homeowners in Florida who are wondering how much does this insurance cost. There is
no straight answer to this question because the cost depends on different factors like the property’s
location, the overall value of the home, the unique features present in some homes and even on some
seemingly unrelated things like the type of electrical wiring in the home. This is quite logical because
there are different types of wiring and some of them are better than the others.

Cloth wiring explained

One of the types of electrical wiring systems that were quite popular in the past (before the middle of
the 20th century) is cloth wiring. Many homes in Florida have this kind of wiring even today. The reason
why people used cloth is simple – cloth is a great insulator. In addition, it was easier to get cloth
compared to plastics.

Even though cloth has proven to be an excellent insulator, the truth is that it tends to become brittle
after some period of time. As a result of that, it simply falls off the electrical wires. When something like
this happens, the risk of fire and injuries is increased.

The impact of cloth wiring on homeowners’ insurance policy cost

Insurance companies are well-aware of the fact that cloth wiring is prone to deterioration. They know
that the risk of fire and shock is relatively high with this type of wiring. Obviously, no one can blame the
insurance companies because their assumptions are correct. So, if your home has cloth electrical wiring,
you can expect higher insurance rates. (2) In some cases, insurance companies are not ready to work
with homeowners that have homes with this type of wiring.

How to solve this issue in the best way?

First of all, you will have to determine the condition of the electrical wiring in your home. It is a great
idea to use a professional electrical home inspection. They will examine the electrical system in your
home and highlight the possible problems. Electrical home inspections are highly recommended when
buying a home, after a renovation, after adding powerful appliances and when the home is older than
four decades.

After that, you should call a certified electrician. These professionals will check and fix the wires and
take care of the insulation. Once they are done, they will provide a certification. You can use this
certification to convince the insurance company that you have chosen that the electrical wiring in your
home is safe. In addition, there are many homeowners who are considering upgrades. This is a more
expensive option, but the initial expense will pay off in the long run. There is no doubt that insurance
companies are ready to lower the insurance cost if the home is using standard, modern wiring.

Hopefully, these articles will help you make the right decision regarding your cloth wiring.

(1) http://www.myfloridacfo.com/Division/Consumers/UnderstandingCoverage/Guides/document s/HomeownersToolkit.pdf

(2) http://business.financialpost.com/personal-finance/beware- these-14- home-features- will-raise- your-insurance

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