Why is my homeowners policy being canceled even though it passed a home inspection?

How can my homeowner's insurance cancel my policy for an outdated electrical box even though it passed a home inspection? When I bought my home, I made sure an independent inspection was completed before the closing. A few days ago, my insurance company sent a letter stating the electrical box needs to be replaced within 30 days or they will cancel the policy! If there was an issue with the box, the inspector would have told me. Can insurance do this?

“When a new homeowner’s policy is issued, it is common for the insurance company to send a home inspector to examine the property for any potential property and liability risk, and an old or outdated electrical box presents a very high risk!
This could be a situation where the independent inspector you hired passed the electrical box since it is still in working order without any red flags or damage. However, your insurance company may require an updated box if they know the one you have now is known for frequently causing damages.
Outdated electrical boxes can cause appliances to:
  • short out
  • circuits to melt
  • fires to start anywhere in the house
There are on average 50,000 residential electrical fires per year.
Even though an electrical box update can cost a few thousand dollars out of pocket now, it will save you a lot of money and heartache down the line.
It might also be worth looking into other insurance companies. Use the free Jerry to help you get the lowest rates from 50 companies delivered to your phone in minutes.”
Shannon Martin
Answered on Jul 27, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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