Amping Up Savings: Exploring The Link Between 200-Amp Service And Insurance Costs

Upgrading to a 200-amp service can lower your insurance bill. A 200-amp service lets you use more electricity and is the minimum recommended for modern homes. It can be a good idea if you have an older home or if new appliances have increased your electrical demand. The cost to upgrade to 200-amp service is between $750 and $2,000. However, it's important to note that insurance companies cannot force you to upgrade, but they are also under no obligation to insure you.

Electrical wiring and insurance

Electrical wiring is an integral part of a home, controlling many functions that we need daily. It is also a vulnerable area, often exposed to perils.

Home Insurance and Electrical Wiring

Standard home insurance policies cover electrical wiring in many cases, especially if the damage is sudden and accidental and caused by a covered peril such as lightning, fire, snowstorm, or tornado. If the wiring is located in the main house, it will be covered by dwelling coverage. If it is in an outbuilding, such as a shed or detached garage, it will be covered by other structures coverage.

However, older homes with wiring that has not been updated in over 40 years may not be covered. Knob-and-tube wiring and aluminum wiring, common in homes built between the 1850s and 1970s, are more susceptible to damage and malfunctions and are seen as a liability.

Electrical Cover

Electrical cover is an optional extra that protects you from electrical mishaps, which can be very expensive. It covers the cost of an electrician to fix issues, from rewiring to repairing light fittings and replacing a damaged fuse box.

Having a 200-amp service does not directly lower your insurance bill. However, older homes with 60-amp or 100-amp services may be at a higher risk of electrical fires. Insurers are aware of this increased risk and may charge a higher premium. Upgrading to a 200-amp service can help to lower this risk and may be something insurers look favourably upon.

Other Ways to Lower Your Insurance Bill

There are several other ways to lower your insurance premium:

• Shop around for the best deal.
• Pay annually instead of monthly.
• Choose a higher excess.
• Build up a no-claims discount.
• Combine insurances, e.g. get home insurance that covers content.
• Make yourself less of a risk by installing smoke alarms or better locks.

Cost of upgrading to 200-amp service

The cost of upgrading to a 200-amp service depends on several factors, including the size of your home, the age of your current electrical system, and the complexity of the installation process. On average, homeowners can expect to pay between $750 and $2,000 to upgrade from 100 to 200 amps. However, this doesn't include the cost of running new wiring for additional circuits.

The 200-amp service upgrade involves disconnecting the power supply to install a new 200-amp panel, new wiring, and a meter socket. The cost of the upgrade ranges from $750 to $2,000, with the 200-amp panel being slightly more expensive, costing an average of $100 to $200 more than a 100-amp panel.

If you're adding power-hungry appliances, you may need to upgrade your panel to 200 amps. This upgrade is also recommended if you have an older home or if new appliances have increased your electrical demand.

The process of upgrading to a 200-amp service is complex and should only be attempted by a licensed electrician. It involves obtaining the proper permits, disconnecting the power supply, installing the new panel, and having the work inspected before reconnecting the power.

While upgrading to a 200-amp service can be a significant investment, it offers several benefits, including improved electrical performance, increased safety, and more reliable power.

The benefits of a 200-amp service

A 200-amp service panel offers several advantages over a 100-amp panel, particularly for modern homes with heavy-duty appliances and greater electrical demands. Here are some key benefits of upgrading to a 200-amp service:

Increased Electrical Capacity

A 200-amp service panel provides a higher electrical capacity, allowing it to safely power large appliances and equipment simultaneously. This increased capacity is essential for large households with high electricity consumption. It also future-proofs your home, ensuring it can handle the increased power demands of newer appliances and devices as technology advances.

Improved Safety and Reliability

The larger size of a 200-amp service panel reduces the risk of overloading, which can lead to short circuits and fires. It also decreases the likelihood of power outages and electrical fires due to its higher load capacity. This upgrade provides peace of mind and ensures a safer and more reliable electrical system for your home.

Additional Circuits and Flexibility

With more space for circuit breakers, a 200-amp service panel offers increased flexibility. This allows for a more even distribution of electrical power throughout your home, without the need to confine appliances and equipment to specific areas.

Reduced Power-Related Issues

Upgrading to a 200-amp service panel can eliminate power-related issues such as tripping circuit breakers, flickering lights, and power fluctuations. It ensures a more consistent flow of power, reducing the hassle of dealing with frequent electrical problems.

Energy Efficiency and Cost Savings

A 200-amp electrical panel is more energy-efficient, allowing you to use higher-power devices more efficiently. While the initial upgrade cost may be high, it can lead to long-term savings on your energy bills. Additionally, it can increase the value of your home if you plan to sell in the future.

Suitability for Electric Vehicles

If you own or plan to own an electric vehicle, a 200-amp service is essential for charging. The higher power capacity ensures that you can safely and efficiently charge your electric car at home.

In summary, upgrading to a 200-amp service offers improved safety, increased electrical capacity, and future-proofs your home to accommodate modern appliances and devices. It provides a more reliable and efficient electrical system, reducing power-related issues and potentially lowering your energy costs.

The drawbacks of a 200-amp service

While upgrading to a 200-amp service has its benefits, there are also some drawbacks to consider. Here are some of the disadvantages of installing a 200-amp service:

High Cost

The cost of upgrading to a 200-amp service can be significant, ranging from $750 to $2,000 or more. This includes the cost of materials and installation by a qualified electrician. For some homeowners, this expense may not be justifiable, especially if their current electrical system meets their needs.

Complexity and Danger

Upgrading to a 200-amp service is a complex electrical wiring project that requires careful planning and execution. Mishandling any step of the process could be lethal, as it involves high-voltage electricity. It is not a project that should be attempted by a DIYer; a professional electrician must be hired to ensure safety and compliance with local codes and regulations.

May Not Be Necessary

For some homes, particularly older ones with fewer modern appliances, a 100-amp service may be sufficient. Upgrading to 200-amp service may provide more power than is actually needed, and the extra capacity may never be fully utilised. In such cases, the cost and complexity of the upgrade may not be justified.

Potential for Overconsumption

While a 200-amp service can provide the necessary power for modern appliances and equipment, it may also encourage overconsumption of electricity. This could lead to higher utility bills and increased environmental impact. It is important for homeowners to be mindful of their energy usage and consider energy-efficient alternatives where possible.

May Not Solve All Electrical Issues

Upgrading to a 200-amp service can address issues such as tripped breakers and overloaded circuits. However, it may not solve all electrical problems. For example, if the wiring in the home is old or damaged, it may need to be replaced regardless of the amperage of the service.

In summary, while a 200-amp service can provide benefits such as increased power capacity and reduced electrical issues, there are also drawbacks to consider, including cost, complexity, and the potential for overconsumption. Homeowners should carefully assess their electrical needs and consult with a professional electrician to determine if an upgrade is truly necessary and the best course of action for their specific situation.

How to upgrade to a 200-amp service

If you have an older home or new appliances that have increased your electrical demand, upgrading to a 200-amp service is a good idea. Here is a step-by-step guide on how to upgrade to a 200-amp service:

Step 1: Disconnect the Power Supply

Shut off the power supply to your house. This may involve more than just shutting off the main breaker. You may need to contact your utility company to disconnect the electrical cables from your home.

Step 2: Remove the Old Meter and Install the New Meter Socket

Remove the glass meter from the meter socket. Unscrew and remove the meter socket from the side of the house. Attach a new 200-amp meter socket to the side of your house.

Step 3: Install New Wiring and a New Electrical Panel

Drill a hole in the wall to feed the new wiring through. Install new electrical wiring and a new electrical panel. The new panel should be larger than the old one to accommodate more circuit breakers.

Step 4: Complete Electrical Wiring and Panel Installation

Connect the new wiring to the meter socket and the new electrical panel. Make all the necessary electrical connections inside the panel, including connecting the ground wires and neutral wires to the ground and neutral bar.

Step 5: Have the Work Inspected

Before turning the power back on, have an inspection done to ensure that the work meets the required standards and codes.

Step 6: Reconnect the Power Supply

Once the inspection is complete and approved, reconnect the power supply to your home. This will involve the utility company reconnecting the cables to your house.

Upgrading to a 200-amp service typically costs between $750 and $2,000. It is important to hire a qualified electrician to perform this upgrade, as working with electrical systems can be dangerous.

Frequently asked questions