Insurance companies, effective Aug 2010, will NO longer insure homes that have aluminum wiring. Buyers are shocked to see their transaction come to a screeching halt as their insurance company denies coverage. Sellers are freaking out to learn that their home is not insurable for a new buyer and maybe impossible to sell.
Many of our properties built 1965-1972 have aluminum wiring and are still compliant with local code. However code doesn’t matter if a buyer can’t get insurance. The insurance companies consider aluminum wiring a potentially hazardous electrical condition. Following is information from a Citizens agent information bulletin:
“Effective 8/1/2010 and as announced in Agent Technical Bulletin #005-10, the Uninsurable Properties section of the personal residential Rules of Practice was amended to clarify that potentially hazardous electrical conditions include properties with aluminum branch wiring circuits.
The rule change was to address concerns related to the original installation (1965-1972) of single-strand aluminum/solid aluminum wiring connected to the lower branch circuits (receptacles, switches, lights and small appliances). Homes with aluminum main service wires and heavier 240 volt circuits that feed major appliances (e.g., dryers, ranges, air conditioners) are eligible for coverage with Citizens.
Citizens has continued to research an acceptable remediation/repair for homes with aluminum branch wiring and currently accepts homes meeting at least one of the following conditions:
* The home has been rewired completely with copper wiring.
* All aluminum-to-copper connections (e.g., light fixtures, fan fixtures, outlets and switches) have been repaired via the COPALUM crimp method.
* All aluminum-to-copper connections (e.g., light fixtures, fan fixtures, outlets and switches) have been repaired via the AlumiConn® connector method.
Note: In all cases of aluminum branch wiring, Citizens requires that all aluminum branch circuit wire connections to the service panel must have been inspected and repaired as necessary to ensure no corrosion/oxidation is present and all connections are tight, before Citizens can insure the home.
An application for a home that has all aluminum branch wiring circuit connections remediated using one of the methods above may be submitted unbound to Citizens Underwriting for review. To establish eligibility for coverage, documentation from a Florida-licensed electrician confirming that all aluminum-to-copper connections have been repaired via the COPALUM crimp method or the AlumiConn connector method must be submitted. In addition, the property must meet all other eligibility requirements. “
Buyers and Sellers need not lose hope. The AlumiConn connector method is certainly more economical than rewiring an entire home with copper wire. 
An electrician can repair all outlets, switches, and fixtures with AlumiConn connectors. The electrician will also need to address the aluminum branch circuits in the Service panel. Only a few electricians are certified to use the COPALUM method so this avenue will be more costly.
This is a caution to Sellers of older homes: be prepared to have some electrical work performed if your home has aluminum wiring. Buyers: have your professional inspector review the electric panel and wiring in the house for aluminum wiring. You may be paying for updating the electric system. These issues can be resolved if everyone is prepared.
