Problematic Electrical Panels Every Multifamily Investor Should Know About When analyzing a multifamily deal, investors often spend hours reviewing rent rolls, utility bills, and CapEx budgets — yet one of the most overlooked hazards in older buildings is the electrical panel. Certain panel brands and models are well-known in the inspection and insurance industries for failure risks, fire hazards, and extremely poor safety performance. A problem panel doesn’t just threaten tenant safety — it can also cause insurance denials, higher premiums, failed 4-point inspections, and even become a deal-killer during financing. Here are the electrical panels every multifamily investor should be aware of before acquiring a property. 1. Federal Pacific Electric (FPE) — Stab-Lok Panels Risk Level: Extremely High FPE Stab-Lok panels are the most notorious problematic panels in the U.S. Multiple studies have shown: Breakers fail to trip at a dangerously high rate Overheating at the bus bars Breakers falling out of place Documented fire hazards Insurance companies frequently require full replacement, and some will refuse coverage altogether. Any building still running on FPE Stab-Lok panels needs immediate attention and should be factored into CapEx. Typical replacement cost: $1,500–$4,000 per panel 2. Zinsco / Sylvania Panels Risk Level: Very High Zinsco panels (later branded Sylvania) are known for: Breakers melting to the bus bar Lost conductivity Arcing inside the panel Breakers appearing “off” but still conducting power These panels often look intact during a walkthrough, but their internal components can be heavily degraded. Many electricians recommend complete replacement over repair. Typical replacement cost: $1,800–$4,500 per panel 3. Challenger Panels Risk Level: High Challenger panels, particularly those made in the 1980s–1990s, have breakers known to: Overheat internally Cause melting and discoloration Fail under moderate load These panels were involved in multiple recalls. Insurance carriers in Florida frequently flag them during 4-points and multifamily inspections.