Recalled Electric Panel

[Rudy Manna]

I have a property (Multi Family) on contract pending inspection in the south side of Seattle. The electrical panel is recalled federal pacific and is deemed dangerous. Any rough idea how much does it take roughly to replace with appropriate panels. 

[Jason Bott]

3 years ago only 1 insurance company would ask about Federal Pacific, now they all are.  I have had 4 clients in 2016 need to replace these panels on 8-12 unit buildings.  Costs $5k-$6k all in.

1) The internal components are aluminum and have an increased chance of fire with society's increasing electrical usage.  

2) In a claim, the insurance company pays out $, then looks to see if they can recapture some of the loss from other parties that are at fault.  Since Federal Pacific is bankrupt, the insurance carrier would be on the hook for the total loss. 

I do not see this underwriting changing any time.  When pursuing a property with this panel, use it to your advantage to bring down the purchase price.