Hazardous FPE & Zinsco Panels Identified as Sales Opportunity
A contractor in the Mid-South is warning homeowners about Federal Pacific (FPE) and Zinsco panels, common in homes built from 1950-1980. These panels are known fire hazards and can make it difficult to get homeowners insurance, creating a strong case for a 200A panel upgrade, especially for clients adding EV chargers or modern A/C units.
Federal Pacific Electric (FPE) panels are linked to an estimated 2,800 fires and 13 deaths annually. The company was found to have falsified UL testing to acquire safety certifications for its Stab-Lok breakers, which have a high failure rate. Independent tests show these breakers can fail to trip during overcurrent situations as much as 70-80% of the time. Zinsco panels also have a history of failure, with breakers that can melt to the main bus bar. This creates a severe hazard where the breaker may appear to be off while still allowing electricity to flow, posing a significant fire and shock risk. Unlike FPE, Zinsco went out of business before a formal recall could be executed, leaving millions of the hazardous panels in service. The latent danger of these panels is that they can function for years without incident. The failure occurs when an overcurrent or short circuit happens and the breaker is called upon to trip but doesn't, allowing wires to overheat and potentially ignite. This is why home inspectors and electricians flag them regardless of their apparent current condition. Due to the documented risks, many insurance companies refuse to write or renew homeowner's policies for properties with FPE or Zinsco panels. This makes replacement not just a safety measure but often a financial necessity to maintain insurance coverage. Upgrading from a hazardous panel to a modern 200A service typically costs between $2,500 and $4,500. This price can fluctuate based on local labor rates, permit fees, and whether significant rewiring is needed to support the new panel.
