When Jim’s church in Lubbock failed their recent insurance inspection, it was a shock. They had put in the effort to secure a new church insurance policy, only to find out that a hazardous Federal Pacific electrical panel was the reason they failed. The inspection report had other details, but the electrical panel was going to be a significant expense. This unexpected setback left Jim scrambling for answers and a plan of action. If your church is facing a similar issue, understanding why these panels are problematic and what to do about it is critical so that you can move forward with fewer safety hazards.
Understanding Federal Pacific Electric Panels and Their Risks
Federal Pacific Stab-Lok panels were commonly installed in buildings across the country between the 1950s and 1980s. Unfortunately, these panels have a history of defects, including circuit breakers that often fail to trip during electrical surges, significantly increasing the risk of electrical fires. For churches, especially those housed in older buildings, these panels can be a hidden hazard. With many churches changing insurance carriers due to the surge in non-renewal notices being issued, the issues is being found during initial inspections for policies.
Why Are They a Problem for Churches?
Churches are often community hubs, hosting a range of activities and events that put significant demand on their electrical systems. A faulty panel can pose a serious safety risk, potentially leading to electrical fires that can do considerable damage to your church facility. This is why insurance companies flag them as high risk during inspections. If your church has a Federal Pacific panel, it could not only fail the commercial building inspection, but also result in policy cancellation or denial of coverage.
Why Churches Are Failing Inspections Due to Federal Pacific Panels
When inspectors evaluate church properties, they pay close attention to the safety and compliance of electrical systems. Many churches have had the same insurance company for many years and annual inspection forms were not detailed or even collected in many cases. Code compliance at a city or county level was not typically needed unless permits were pulled for construction or remodel activity. As a result, the potential safety hazard has not been caught through the years.
Federal Pacific panels, due to their known issues, are a red flag that is now being found. With new policies being issued in the troubled property insurance market in Texas, greater scrutiny is being placed at the time of inspection for these policies. The inspector will look for panels that are outdated, unsafe, or prone to failure. If your church has one of these panels, it’s likely to fail the inspection, putting your insurance coverage at risk.
Failing an inspection because of a Federal Pacific panel can lead to severe consequences. Many Insurance companies will deny coverage or even cancel the policy altogether. This can leave your church vulnerable to unplanned expenses or, worse, without insurance protection for structural damage to your property.
Steps to Take if Your Church Has a Federal Pacific Panel
Step 1: Confirm the Presence of a Federal Pacific Panel
If you suspect your church has an older electrical panel or the ill-fated Federal Pacific panel, the first step is to confirm it. Look for labels like “Stab-Lok” on the panel, or consult a licensed electrician to inspect and verify the panel’s brand and condition. Knowing this can bring peace of mind even if you don't fail an inspection.
Step 2: Contact Your Insurance Agent
Once you’ve confirmed the presence of a Federal Pacific panel, contact your experienced insurance agent to discuss your options. An experienced church insurance specialist can provide guidance on the next steps and discuss temporary coverage options while the issue is being addressed.
Step 3: Plan for Replacement
Replacing a Federal Pacific panel is not a simple fix, but it’s a necessary one. Work with a licensed electrician to get a quote and set a timeline for the replacement. The cost of repairs may seem high, but it’s an investment in your church’s safety and future. This will also help keep your church insurance premiums in check in this time of inflation.
Preventing Future Inspection Failures
Regular maintenance is key to avoiding future inspection failures. Schedule routine inspections with a licensed electrician to identify potential problems before they become significant. This proactive approach can save your church from unexpected expenses and safety risks.
If your church’s electrical equipment is outdated, consider upgrading it before it becomes an issue. Proactively replacing old panels, wiring, and other components can prevent future inspection failures and make your property safer for your congregation.
How True Texas Church Insurance Can Help
Navigating the complexities of Texas Church insurance is not for the faint of heart. Especially now that a failed inspection can result in losing coverage for your church. True Texas Church Insurance is here to help you navigate finding customized coverage to fit your needs while also helping you understand potential safety hazards that can cause significant damage to your building and financial health. We have the experience and knowledge needed to guide Texas churches through these challenges, offering advice on how to deal with inspection issues related to Federal Pacific panels.
Facing a failed inspection because of a Federal Pacific electrical panel is a serious issue, but it’s not the end of the world. By taking immediate action, working closely with your insurance agent, and making necessary upgrades, you can protect your church congregation.
Click the button below to learn how True Texas Church Insurance can help your church address insurance inspection issues and maintain coverage. We’re here to support your church’s safety and ensure you have the right coverage for your needs. Jim’s church in Lubbock made the necessary changes, and so can yours.