FAQs

The vast majority of the circuit breaker panels in the community, both on the outside and the inside of the units, are Zinsco brand.  These panels have been rated as safety and fire hazards. As a result, the DMV insurance company canceled the community’s policy. DMV has secured “high-risk” insurance for the time being, but this is financially unsustainable.  The community will not be able to buy regular insurance until all Zinsco panels on the property have been replaced.

DMV has secured replacement insurance coverage, but it is “high-risk” insurance. Compared to regular insurance, high-risk insurance has a much higher cost, higher deductibles, and lower coverage limits.

• DMV was paying approximately $27,000/year, but the current high-risk policy is approximately $180,000/year.

• The current high-risk policy has only $5 million in coverage, compared to $25 million coverage under the previous, normal-risk, insurance policy.

DMV has paid the premium for one year of this high-risk insurance, starting January 11, 2023. DMV was able to use the Caltrans settlement funds received late last year. Given the delays in starting the replacement project, it is highly likely that we will be stuck paying for a high-risk policy again in 2024.

DMV does not have the funds to cover the high-risk premium in future years. Our budget for 2024 includes another year of high-risk insurance. We have raised monthly assessments by the maximum 20%, which is an increase of $80 per unit per month. However, this increase is insufficient to cover the full cost of high-risk insurance and we will need to take a loan from our reserve account, which will have to be paid back in future years. If the community must remain on high-risk insurance beyond 2024, our monthly HOA assessments will continue to increase. And the community would then still have insurance with low coverage and high deductibles.

Zinsco brand electrical panels and circuit breakers were used in the original

construction of all the buildings in the community.  The insurance industry has identified these panels as high-risk components and a safety issue.  Information on the modes of failure can be found here: https://inspectapedia.com/electric/Zinsco_Electrical_Panels.php

Other websites with information on Zinsco panels and the previous class action lawsuit: https://homeinspectioninsider.com/zinsco-panel-recall/

https://nonprofithomeinspections.org/what-are-zinsco-electrical-panels/

Every unit has two panels: one next to the garage door and one inside the unit.  There are seven more that supply power to common areas.

Every unit has two circuit breaker panels, one outside (at the garage) and one inside the unit. This panel map shows the locations of each exterior panel on the property.  The Board has also provided floor plans for each unit type on the property, which highlight the location of the interior panel in each unit.

DMV has created a spreadsheet with information about the exterior panels at each unit.  You can check the spreadsheet at this link.  If there is a “Z” next to your address in the “Main Panel” column, then you need to replace your exterior panel.  You can also see a photo of your exterior panel by clicking on your address.

If you open the door for your interior panel and see the name “Zinsco” on the label in your panel, you will need to replace it.  Here is a picture of a typical interior panel in the community.

The Board doesn’t yet know the status of most interior panels.  The Board is requesting that each homeowner inform the board of two things:

1. The brand of panel inside your unit

2. The location of the panel inside your unit
   Generally, there are only two answers for #2:  in a hallway or in a closet; the Board is looking to determine how many Zinsco panels are located in a closet

Please send this information to Tom Kees, at tomkees09@gmail.com.  A simple email is fine, as are pictures.

Unfortunately, no.  While the circuit breakers are a well-known cause of problems, the aluminum bus bar and wiring harness inside the panel are considered hazards too. 

DMV has investigated retrofit kits for the panels manufactured by Eaton.  These kits replace all the hazardous components of the existing panels.  Unfortunately, Eaton does not make a kit for exterior use, so they do not have a solution for the main panels.  And the internal kits they offer are too small (hold an insufficient number of circuit breakers) to service the electrical loads of the townhomes in this community.

At present, each homeowner is responsible to incur the costs of replacing the interior and exterior panels at their unit. Additionally, there are 7 panels in the common areas.  The costs of replacing these seven panels, which at least aren’t expected to have any permitting issues, will be shared equally by all homeowners.

The Board is exploring options for taking responsibility for all exterior panels. Interior panel replacement will remain the responsibility of the homeowner.

In most cases, homeowners can go ahead and replace their interior panels. 

In units where the interior panel is in a closet (which seems to be the case for all 2-bedroom units, whether 1 or 2-story), you will need to find a new location for your interior panel, as the building code no longer allows panels to be placed in closets.  Non-Zinsco panels that are already placed in closets are expected to be acceptable, but Zinsco panels cannot have a new panel installed in the same place; a new location will need to be identified for the replacement panel.

We have confirmed with SDG&E that exterior Zinsco panels cannot be replaced at their current location, due to their proximity to the gas meters. (Things are a little more complicated than that, but this is the basic story.  You can find more building code details at this link.)

After extensive research and consultation with SDG&E, the Board is moving forward with a plan to move all existing residential electrical meters to the end of the garage row, with a new breaker panel to be installed on the inside of each garage. 

Homeowners are encouraged to replace their interior panels.

The Board recommends that homeowners not replace their exterior panel at this time, while the Board continues to work with SDG&E to develop a general solution for replacing exterior panels. 

We now know that, as part of any general solution, no exterior panel will be permitted to be replaced at its current location.

The cost of replacing interior panels is the sole responsibility of the homeowner. Among owners who have already replaced their interior panels, estimates ranged from $1100 to $1800.  

The Board is pursuing options that will allow the Association to take responsibility for replacing all exterior panels. If such an option is implemented, the entire cost of replacing all exterior panels will be shared equally by the homeowners. As a rough (and conservative) guess, replacing the outside panels (plus common area costs) is expected to be in the range of $12,000 to $20,000 per homeowner. 

Any panel that meets the current electrical code will work.  The best way to ensure that your replacement panel meets the code is to consult with an electrical contractor and secure a permit for replacement.

You do not need architectural approval to replace your interior panel. 

At the moment, the Board advises against replacing any exterior panel. 

The Board expects that insurance companies will want to see proof that all Zinsco panels on the property have been replaced and that all panels meet current safety standards.  Exactly what type(s) of proof will be acceptable to insurance companies is not yet known.  The Board recommends that homeowners keep all documentation associated with replacement of both panels, including permits, plans, and invoices.  Those who do not need to replace their panels should see if they have this kind of documentation for their previous panel replacement.  In the absence of this documentation, the Board asks homeowners to take photos of their existing panels. 

Once the Board has more clarity about the kind of proof needed to satisfy insurance companies, a system of collecting and submitting the required documentation will be arranged.

For replacing interior panels, a list of recommended electrical contractors is available from our management company, PMP.

For exterior panels, the Board is pursuing options that will allow the Board to take responsibility for the project, which would be managed by a contractor.

The Board recommends that homeowners begin exploring options for financing the costs associated with replacing their panels, such as a Home Equity Line of Credit.  The DMV Board will also explore the possibility of offering financing options to homeowners through the HOA, but, at this time, there is significant uncertainty about those types of options.

We are already budgeting for another year of high-risk insurance in 2024. Our hope at this point is to avoid paying for high-risk insurance starting in 2025 and beyond. 

If some panels still need to be replaced in January 2025 but the Board can show insurance companies that a concrete plan is in place to complete the work in a timely fashion, an insurance company willing to work with the community to find an acceptable insurance solution may be found.  This scenario is far from certain, so the Board will continue working hard to find solutions to the permitting issues and to address other points of uncertainty.

Replacement of all Zinsco panels is absolutely required.  Just one Zinsco panel will keep DMV in the high-risk (exorbitant cost) insurance market.  The Board certainly hopes and expects that all homeowners will voluntarily cooperate and replace their panels, but will also be prepared in case some decline to do so.

After consulting with DMV’s attorney, the Board has learned that the Board is permitted by law to use financial penalties to compel homeowners to take certain actions when failing to comply with the requirement has grave and adverse effects on homeowners’ interests.  Failing to replace a panel in the current situation qualifies under this standard because it will prevent DMV from returning to the regular insurance market and consign all homeowners to a drastic increase in monthly dues.

The exact form and amount of these financial penalties is not yet known, but the Board will strive to ensure that they are significant enough to make it in each homeowner’s financial interest to replace their panels.  The Board will define these penalties in consultation with DMV’s attorney and provide further guidance when available.