Experts say Federal Pacific electrical panels in homes may be a fire waiting to happen
This is an article I recently found. Many of these boxes have also been found in South Florida.
Karen and Floyd Clardy remember hearing a giant pop from the garage. The lights in their Lake Highlands home went out, and suddenly there were flames.
Lake Highlands homeowner Todd Holmes says he’s replacing his home’s Federal Pacific Stab-Lok panel “to be on the safe side.”
They watched as fire spread from the garage to the attic and two rooms in the house, causing $160,000 worth of structural damage.
“The breaker box was shooting flames, and there were sparks,” Karen Clardy said.
Dallas Fire-Rescue determined that the fire in March started in the electrical panel in the garage. The Clardys’ home was equipped with a Federal Pacific Stab-Lok, a type of circuit breaker in thousands of North Texas homes that is now widely thought by engineers, electricians and house inspectors to be defective – and dangerous.
Experts first began saying in 1980 that a high percentage of the circuit breakers failed to trip. After testing the devices for about two years, the Consumer Product Safety Commission said the government lacked sufficient data to warrant a recall. No warning was ever issued.
But in recent years, engineers studying them independently have found that the circuit breakers can overload and cause fires. Many have been replaced in the decades since they were manufactured, but one expert estimates they are still used in 20 million homes nationwide.
“They’re everywhere,” said Bob Charvoz, chief home inspector for the American Association of Professional Inspectors in Plano.
“If your house was built during the ’60s, ’70s or ’80s, it probably has one of these breakers. About 90 percent of houses we see from that time have them.”
New York engineer Jesse Aronstein said he has been writing to the Consumer Product Safety Commission for six years, urging that a clear warning be issued.
Aronstein met with the commission most recently in February, saying that fires could be prevented if the commission would update its 1983 statement. The commission now says it is working on a way to make its stance clearer, spokesman Scott Wolfson said.
“If homeowners have been experiencing these incidents, we want them to report them to our agency,” Wolfson said. But he added, “We need to recognize that there was no final conclusion.”
Federal Pacific is no longer in business.
Although the suspect breakers were used in homes constructed by many builders, Fox & Jacobs installed them exclusively in the Southwest up until the mid- to late 1960s, according to a spokeswoman from Pulte Homes, which now owns the company. Fox & Jacobs homes accounted for about 80 percent of homes built in the Dallas-Fort Worth area during most of the 1970s.
No one can say how many house fires can be traced back to faults the experts see in the boxes, although fire departments and insurance inspectors say they regularly see fires start there, or start elsewhere in a home because a circuit breaker fails to do its job.
Several engineering experts who have tested the boxes under laboratory conditions have found them to be defective. Potential problems with the Federal Pacific circuit breakers are such that many Texas home inspectors regularly advise home buyers to remove them before a purchase.
But not always. The Clardys’ house, built in 1978, had two previous owners. After the fire, they were surprised to learn the history of the type of circuit breaker that was in their house.
“We had no idea we had a problem” Floyd Clardy said. “No one ever said, ‘Replace the breaker box. This is dangerous.’ ”
“If they had, we would have done it in a flash,” his wife said.
The suspect Stab-Lok circuit breakers were manufactured beginning in 1960 and used through the 1980s by Federal Pacific Electric. Most – but not all – were installed in closets.
The standards set for breakers can be compared to those for automobile brakes.
Brakes should be able to stop a car within a set distance; Circuit breakers should interrupt the electrical current when circuits become overloaded and overheated. This can prevent hazards such as overheating and shocks and at worst a fire.
Aronstein said his two decades of testing showed that more than 25 percent of Federal Pacific circuit breakers are defective in lab settings. The rate could be higher in non-lab settings, engineers say.
Denton engineer Mark Goodson’s consulting firm investigates fires for insurance companies, including the company that insured the Clardys.
“I think they’re dangerous,” Goodson said. “They don’t timely trip. I’ve seen fires caused by these breakers. I’ve seen wires overheat where a Federal Pacific breaker did not trip. If left unchecked the wires can combust and spread to cardboard, paper, clothing.”
For more than 100 years, standards for circuit breakers has been unofficially set by Underwriters Laboratories, a nonprofit groups that tests appliances and sets standards used by the federal Consumer Product Safety Commission.
UL electrical engineer John Drengenberg said companies can sell products that don’t have the UL mark, but building inspectors will not pass a new home if something like a circuit breaker doesn’t bear the seal.
The Federal Pacific circuit breakers carried the UL seal, but there have long been questions about whether some or all were properly certified.
A Federal Pacific engineer who resigned in 1978 later wrote the company president with his claim that internal testing found certain breakers defective.
“We found that they would only perform for approximately 1,200 operations of 3,000 required by Underwriters,” he wrote, according to documents that were part of several lawsuits related to the faulty breakers. “At this point, the contacts would become badly burned and excessive temperatures would occur.”
The engineer, J.F. Meacham, cited several other cases where circuit breakers were “cheated” through the Underwriters Laboratories approval process, and he alleged that UL inspectors were paid to “turn their heads,” the document says.
The engineer wrote that the cheating would hurt the company, but no mention was made of possible safety consequences.
“I think you know me well enough to know that I could not turn my back or take part in what I have described in this letter, so I left,” he wrote.
Drengenberg said UL couldn’t comment on the 32-year-old allegations because records do not extend that far back.
If an inspector has heard of the potential hazards of a Federal Pacific circuit breaker, it’s through experience, Charvoz said, not through the federal government.
“There’s a good chance that things will fail later,” even if they’ve worked properly for decades, said Charvoz. “There are electricians out there who say, ‘Don’t change them, it’s OK.’ That’s something that needs to be changed.”
Dallas electricians and home inspectors almost always flag Federal Pacific breakers during inspections because they might be dangerous, home inspector Rudy Ringel said.
Whether people decide to replace the breakers is an issue for the home buyer and seller to determine; it’s not mandatory.
Todd Holmes, a father of two, was remodeling his bathroom when the contractor redoing his electrical system suggested he replace his Federal Pacific electrical box, including the breaker.
“It’s going to be $2,000 or so, but we’re getting it changed to be on the safe side,” Holmes said. “It’s the smartest thing to do.”
How can you tell if your home has a Federal Pacific Stab-Lok circuit breaker?
The faulty breakers would be inside a box in a wall of your home, probably in a closet or in the garage. Inside the panel door would be a label that says “Federal Pacific” or the letters “FPE.” The flaws in the breaker are not visually apparent.
What should you do about it?
Experts say any Federal Pacific Stab-Lok breaker should be replaced. Breakers that have a white dot on the handle were manufactured after a redesign by Federal Pacific. Testing shows they are statistically less likely to fail, but experts still recommend replacement.
How much will this cost?
About $2,000. Replacement should be made only by a qualified electrician.
SOURCE: Dallas Morning News research
Roof Leak
This house had a 6 year old clay tile roof. It was in good condition except for a couple of crack tiles that could be seen when we got up on the roof. After close examination of the exterior walls, we found these stain marks on the front porch. There are also other stain marks to the right of these that cannot be seen in this picture. This is evidence of a leak at the valley or tranistion in the roof. The repair here is about $1400.00. It is important that your home inspector understand roof systems and know how to inspect them properly. This can save you a lot of money down the road by knowing what condition your roof is in and fixing the problem rather than waiting and letting it get worse.
Posted by Bill Siegel Florida Home Inspecxxtion Team Inc
Improper Bonding of an Electircal box
This is a common problem in panel boxes. If you look where the white (neutral) wires are you will see bare (ground) copper wires in the same area. This is improper bonding of the box. The ground and nuetral wires must be separated in the distribution panel (which this is). They can only be on the same bar if this was the service panel, which contains the main breaker to the home.
Posted by Bill Siegel Florida Home Inspection Team Inc.
REQUIRED BUILDING PERMITS IN MIAMI GARDENS
This is taken from the Miami Gardens web site:
- fence construction
- shed installation
- screen enclosures
- installation of a patio slab
- gazebos
- roofs
- room additions
- docks and seawalls.
Many interior alterations also require a permit such as;
- electrical wiring
- drywall
- plumbing changes
- water heater installations
- doors and windows to name a few.
This is not a complet list. Please contact the Building Services Division at (305) 622-8027 before commencing construction to determine whether a permit is required.
This is why it is always important to conduct a permit search on the home you are about to purchase.
Posted by Bill Siegel Florida Home Inspection Team Inc.
MINIMUM STANDARD FOR DWELLINGS IN MIAMI GARDENS
Fines can be assesed if these standards are not met.
Posted by Bill Siegel Florida Home Inspection Team Inc.
All properties in the City of Miami Gardens must be maintained in good condition. This includes:
No broken windows or doors.
North Miami Beach Building Permit Requirements
The following is from the North Miami Beach Building Department web site:
A building permit is required for all new construction and for any repairs or reconstruction which alters a structure.
Building permits are also required for other constructions such as:
- driveways
- accessory buildings (sheds, garages, etc.)
- burglar alarms
- fire alarms
- heat pumps
- air conditioning units
- lawn irrigation systems
- fences, re-roofing
- screen enclosures
- docks
- swimming pools
- septic tanks
- water heater replacement
- drainfield repairs/replacements
- sanitary sewer connections
- sidewalks
- slabs or patios
- tennis courts
- tree removal and satellite dishes.
Homeowners hit with higher insurance premiums
http://www.sun-sentinel.com/business/fl-florida-insurance-rate-hikes-20100709,0,6972239.story
Warren Kurtzman was elated when Gov. Charlie Crist vetoed legislation last month that would have made it easier for insurers to raise property insurance premiums.
That’s why it came as a shock when his insurer, HomeWise Insurance, informed Kurtzman two weeks later that the premium on his Delray Beach condominium unit is increasing by 42 percent – from $609 to $864 – this year.
“I thought [the veto] was the greatest thing in the world,” Kurtzman said, “and all of the sudden, I get this [notice] and I almost choked!”
Despite Crist’s veto, and four relatively quiet hurricane seasons, thousands of Florida residents are experiencing similar rate hikes this year. The reason: Crist’s veto doesn’t end rate increases – they’re still allowed for some reasons, with state approval.
In the past 12 months, the Office of Insurance Regulation approved about 140 residential insurance rate hikes, ranging from less than 1 percent to 29 percent. Some individual policy holders’ bills went up more because the approved rate increase is a statewide average.
The increases were approved after many insurers argued that efforts made by the state Legislature to cut premiums in 2007 and 2008 had left them unable to keep pace with claims and other costs. Lawmakers were pressed to act after policyholders experienced huge increases in premiums – doubling and tripling in some cases – after Hurricane Wilma in 2005 and other storms.
Last year, Crist signed legislation that made it easier for insurers to boost premiums as much as 10 percent annually to pay for certain backup coverage costs. About 22 of the 140 increases were filed under that law.
Regulators say there are deeper problems with the property insurance market, including the development boom during the past few decades and, in turn, an increase in the possible damage that could result from a major hurricane.
As homeowners’ policies come up for renewal, they are learning that their rates are rising. Some say they feel helpless dealing with their property insurance, which is required by most lenders.
Karen Leshin, of Weston, said her State Farm property insurance premium increased 60 percent, from $3,198 last year to $5,110 this year. “How is it possible?” she said. “We’re kind of caught between a rock and a hard place.”
Leshin said she wants to move out of Florida due in part to the cost of insurance. But like many other Floridians, her home isn’t worth close to what it was when she and her husband, a retired airline pilot, bought it. She said they have bought State Farm policies to insure their home and cars since 1971. Before paying the higher premium, she said she tried shopping around but found other insurers charging about the same.
“I guess they all got the memo,” she said.
Kurtzman said he plans to shop around. He said he can’t afford a dramatic rate hike because he’s on a fixed income after retiring from a career in finance: “I’m getting killed in the stock market.”
Sylvia Dow, a retired communications worker, said her insurer, Southern Fidelity Insurance, increased the premium on her Margate home by 36 percent from $2,010 to $2,729 this year.
“It was quite a shocker, but we have to deal with it because we have to have insurance,” she said.
Dow said she was surprised when Allstate dropped her coverage in 2007 because she doesn’t live near the coast and she hasn’t filed a claim in the 20 years that Allstate covered her home and car.
Major national insurers such as Allstate and Nationwide dropped policies after the 2004 and 2005 hurricanes. State Farm, the state’s largest property insurer, faced some unique challenges.
The company announced its plan to leave Florida’s property insurance market early last year after the state rejected its request for an average rate hike of up to 67 percent.
Months later, the state Legislature approved a sweeping measure to deregulate insurance rates, hoping it would help the state keep companies like State Farm in Florida, but the bill was vetoed by Crist.
But Deputy Insurance Commissioner Belinda Miller said State Farm’s low rates were its own doing: Unlike other insurers, the company offered voluntary discounts, not required by the state, for years.
“That was not rate suppression. That was a company doing in Florida exactly what it’s doing in other states,” Miller said. “They put us through hell over the 67 percent rate increase when in fact at least half of that was self-inflicted.”
Eliminating the discounts translated to a statewide average rate hike last year of 28 percent for State Farm, regulators estimated. State Farm struck a deal with regulators to stay in Florida but to drop 125,000 policies and increase rates by another 14 percent, on a statewide average basis.
Miller said Florida’s problem stems from its growth in development in recent decades, which means there’s more potential damage from hurricanes. At the same time, insurancen companies have less appetite to cover catastrophies; they’d rather sell other, more profitable types of insurance, such as autos and other vehicles.
“It’s not that we have more hurricanes. The problem is we’re building more in their path,” Miller said.
In addition, some lawmakers and regulators argue that it’s unclear just how bad insurers’ financial health is; many pay fees to affiliate companies to manage parts of their business. Unlike the insurers, their affiliates aren’t subject to regulatory restrictions on profit and dividends, and they aren’t required under state law to file audited financial statements.
“It seems like there’s a big loophole there,” said Chris Cury. Cury is a real estate developer who recently got his license to become a public insurance adjustor.
State Farm increased the premium on Cury’s home in Plantation from $2,500 to $4,200 – 68 percent. “I didn’t understand it because there hadn’t been hurricanes in several years,” he said. “I’m in the real estate business, so it hit me hard.”
Gail Bierworth, of Lighthouse Point, said State Farm increased her homeowner insurance premium 83 percent, from $3,395 to $6,214, even though her home was completed in 2005 and has hurricane impact windows and other features fortifying it against storms. She said State Farm covers her home and car. She’s purchased her homeowners insurance from the company for 20 years – and never filed a claim.
“I can’t believe that a company can raise the premium 83 percent in one year. This seems to me to be most unconscionable, especially at this time of our uncertain economy,” she said before calling state officials to complain. State officials, she said later, weren’t very helpful.
She ultimately she lowered her coverage dramatically – from $698,600 to $390,000 – to bring the premium near last year’s, $3,420. “That was the lowest they’d be able to lower my coverage,” she said. “It’s probably on the low side…but I’m comfortable with it.”
Posted by Bill Siegel Florida Home Inspection Team Inc
Foreclosures dominate Broward home sales in 1st quarter
Prospective home buyers often complain that they can’t turn around without running into a foreclosed property. Now here’s proof:
Nearly half of the homes sold in Broward County during the first quarter of 2010 were in some stage of foreclosure, RealtyTrac Inc. said Wednesday.
The share of Broward sales that involved a home in distress was 44 percent, well above the national average of 31 percent.
Foreclosures — homes in default, bank-owned or scheduled for auction — made up 26 percent of sales in Palm Beach County during the first quarter.
The average sale price of a foreclosed home in Broward was $123,270, while Palm Beach County’s was $148,458.
Buyers in each county paid 22 percent less for a house or condominium if it was in foreclosure, according to RealtyTrac, an Irvine, Calif.-based research firm.
“First-time homebuyers and investors continue to buy foreclosure properties in large numbers, and at substantial discounts,” James J. Saccacio, RealtyTrac’s chief executive, said in a statement.
As lenders repossess homes in record numbers, they’ll have to be careful to manage the inventory to prevent more dramatic price declines, he said.
Foreclosure sales made up 39 percent of all transactions across Florida during the January-to-March period. In 2005, foreclosure sales accounted for less than 1 percent of all home sales nationally.
Home inspection story
I was hired to conduct a home inspection for the lender on an FHA financing deal. The buyer already had one inspection done that showed no defects to the house according to the buyers agent. The inspection was ordered because the lender could not accept the report, as they had not ordered it. Here are some of the major items that we found:
- The master bathroom shower pan was leaking. The cold water shower handle was also leaking. Total repair cost approximately $3000.00.
- The air conditioner was new, probably not installed with permits, and was not cooling properly.
- There was no visible bond wire at the pool pump motor. This is a safety hazard that can result in shock or death.
- The bus bars in the distribution panel were under rated for the electrical system. This is a safety issue that could result in a fire.
The following is a list of other items:
- The cold water connection at the washing machine was leaking.
- The cold water handle at the guest bathroom sink was leaking and water was getting into the vanity because the backsplash was not sealed.
- The guest bathroom was remodeled and now there is only 24 inches of clearance for the toilet. There is supposed to be 30 inches, 15 on each side from the center of the bowl. This might seem a little picky, but a large person might have a hard time sitting on the toilet.
- There is a hydromassage tub in the guest bathroom. There was no access to the motor or to verify GFCI protection.
- The windows in the home were older and many of them did not shut properly.
- There were minor repairs needed to the roof.
- Gutter downspouts were missing.
- There was loose flooring at the lip of the sunken living room.
- There were various ungrounded and reverse polarity at the outlets.
This represents about $7000.00 to $9000.00 of total repair costs needed to the home. Of course when I walked in the seller, a contractor, told me there was nothing wrong with the house (he had bought it to flip it).
All of this goes with the importance of hiring a qualified home inspector. Most people today are only interested in the cost of the inspection. As this was done for the lender and not the buyer, I can only wait until the buyer contacts me about my findings.
Posted by Bill Siegel Florida Home Inspection Team Inc.
Flippipng appears to be back
Well guys, I am not a 100 percent yet coming off my accident, but I was able to attend my first inspection today. The house was being renovated by “handy men” who knew not what they were doing. All of the toilets were loose and one of them was leaking. There is a non-permitted bathroom in the non-permitted converted garage. In that same bathroom the shower pan is leaking and there is a leak in the wall behind the sink. The seller acted surprised when we opened the vanity and showed him the mold all over the wall. The tiles in the hall bathroom stall shower looked as if a three year old had installed them. Somehow they had moved the showerhead up on the ceiling – I first thought it was a light when I went into the bathroom.
They installed a new pool pump, but forgot to secure it to the pad. There was no bonding wire to the motor, which can be extremely dangerous. Somewhere in the pool lines there is a leak, as evidenced by the bubbles blowing into the pool.
Someone replaced the interior electrical panel box, but did not know that the neurtal wires and ground wires need to be on separate bars. The outlet for the air hander was just hanging from the wall.
They installed a tankless water heater, probably without a permit, and all the water pipes in the utility room are just dangling at the walls, nothing is secured.
The air conditioner is 20 years old and not working, but the seller says it can be serviced – we said replace.
I could go on and on but it is just easier to tell our client to get a competent general contractor into the house and get an estimate on how to undo and redo everything that these people have done. We are estimating this to be somewhere arouond $30,000.00.
Posted by Bill Siegel Florida Home Inspection Team Inc.