Suffolk County Homeowners Are Fighting Back Against Skyrocketing Insurance Costs with Smart Electrical Upgrades

Suffolk County homeowners are facing an unprecedented challenge as homeowners faced an average 17.4% premium increase for new policies in the first half of 2024, compared to 11.6% in 2023 and 5.9% in 2022. With rates having risen by 24% over the past two years, Long Island residents are searching for effective ways to reduce their insurance costs. The good news? Upgrading your home’s electrical system can provide significant premium savings while enhancing safety and property value.

Why Suffolk County Insurance Costs Are Climbing

Suffolk County’s unique coastal location makes it particularly vulnerable to insurance rate increases. Coastal exposure increases the risk of windstorms, hurricanes, and flooding — particularly for homes near the shoreline. Additionally, older homes may have higher home insurance costs due to the high risk of fire, electrical issues, or plumbing failures.

The insurance industry is responding to these risks with some New York insurers requiring hurricane deductibles for properties in New York City, Nassau and Suffolk counties, and coastal Westchester County areas. These deductibles apply when a storm is declared a hurricane and often range from 1% to 5% of your coverage amount.

The Hidden Insurance Risk in Your Electrical Panel

Many Suffolk County homes contain outdated electrical systems that pose significant insurance risks. When homes have old electrical wiring types like knob and tube or aluminum wiring, insurance companies may deny coverage. If you do find a group willing to insure your home, you could face higher premiums. This is due to the increased risk of fire and damage to your personal belongings. Homeowners insurance in a home with knob and tube wiring is possible, but it may cost you.

Even if your Long Island home isn’t on any historic register, insuring an older home can bring unique challenges due to outdated electrical systems or hard-to-find building materials. Insurance companies are particularly concerned about Federal Pacific Electric panels, which are a latent hazard and FPE circuit breakers can fail to trip in response to overcurrent, leading to electrical fires. An FPE circuit breaker will appear to “work just fine” in passing along current to the circuit it feeds, until there is an overcurrent, short circuit, or similar condition. When those exceptional conditions occur, this equipment fails to protect the circuit and the building from overheating and fires, in some cases at a failure rate around 60% of the time.

How Electrical Upgrades Lower Your Premiums

The insurance industry recognizes that modern electrical systems significantly reduce fire risk, and they reward homeowners accordingly. Upgrading your home’s electrical, heating, and plumbing systems earns you an average discount of 13%. More specifically, upgrading your electrical system can earn you a discount of up to 5% on your insurance premium. More importantly, it reduces the risk of electrical fires and allows your home to safely handle modern appliances and electronics.

Some insurers go beyond standard discounts. Some providers may offer a small discount for any reasonable step that lowers your risk of an electrical fire, including panel upgrades. Others have policy clauses that give them the right to increase your rates if you have an older panel with a known defect, fault, or issue.

Professional Installation: The Key to Maximum Savings

To qualify for insurance discounts, electrical work must be performed by licensed professionals and meet current safety codes. This is where choosing the right electrical contractor becomes crucial. For Suffolk County residents, Residential Electrical Services in Suffolk County NY provided by experienced contractors like Marra Electric ensure that upgrades meet insurance requirements while maximizing safety benefits.

Marra Electric, a reliable Suffolk County Electrical Contractor for over 15 years, specializes in electrical panel upgrades that help homeowners qualify for insurance discounts. We are a valued Suffolk electrician that has proudly served the local Suffolk community for many years. Our customers range from all over Suffolk County. We know that you need an electrician in Suffolk that not only provides expert electrical experience, but the best customer service.

Beyond Basic Upgrades: Smart Technology Savings

Today’s homeowners can go beyond traditional electrical upgrades to maximize their insurance savings. Imagine a future where your smart home system could detect small electrical issues before they become fire hazards or monitor air quality to ensure your family’s health. These kinds of technologies are already on the horizon, and insurance companies are likely to expand their discounts as smart home devices become even more effective at reducing risks.

Smart thermostats can help you save on energy costs and may qualify you for insurance discounts. These devices can detect unusual temperature changes that might indicate a fire or freezing pipes and quickly notify you of any issues.

The Comprehensive Approach to Premium Reduction

While electrical upgrades provide substantial savings, combining them with other safety improvements maximizes your discount potential. With home insurance rates rising in 2024, maximizing discounts is more crucial than ever. By bundling policies, upgrading home features, maintaining a good credit score, and staying claims-free, homeowners can significantly reduce their insurance costs. Discounts can add up to substantial savings, with some of the best offers reaching up to 40%.

Taking Action: Your Next Steps

Don’t wait for your insurance company to demand electrical upgrades. Don’t wait for an emergency or ultimatum to push you into action. Having your panel upgraded before you have a problem tells your insurer you’re serious about risk management, which may help keep your rates down.

Marra Electric offers free estimates and upfront pricing. Customer service is our number one priority. Their team of licensed, certified, and highly experienced electricians ensures that your electrical upgrades meet all insurance requirements while providing the safety and reliability your family deserves.

As Suffolk County insurance costs continue to rise, homeowners who invest in electrical system upgrades today will benefit from lower premiums, increased safety, and enhanced property values for years to come. Contact a qualified electrical contractor to discuss how modern electrical systems can help you fight back against rising insurance costs while protecting your most valuable investment.