Aluminum branch wiring: the credit-request playbook
Aluminum branch-circuit wiring was common in US homes built between 1965 and 1973 due to copper shortages. The connections oxidize over time and overheat at outlets and switches. The fix is straightforward and most insurers price it in.
What this finding actually is
Aluminum branch circuits are the small-gauge wires running from the panel to outlets, switches, and light fixtures. (This is distinct from aluminum service-entrance cable, which is a different conductor and is fine.) The connections at receptacles and switches loosen and corrode, generating heat that can ignite framing.
Remediation has three valid paths. CO/ALR-rated outlets and switches throughout ($800 to $2,500) is the cheapest. Pigtailing every connection with copper using approved AlumiConn or COPALUM connectors ($2,500 to $6,000) is more durable. Full rewire to copper ($8,000 to $15,000) is the permanent fix and the only one some insurers will accept.
Why it is a credit conversation, not a fix-it conversation
Insurance is the primary lever. Carriers vary widely: some accept CO/ALR outlets, some require pigtailing, some require full rewire. Call the carrier you intend to bind with and get the requirement in writing before you negotiate. The number you ask for should match what your insurer requires, not the cheapest option.
This finding is common enough in 1965 to 1973 homes that most sellers expect the conversation. Listing agents generally counter at 60% to 80% of the pigtailing cost.
How to confirm what your inspector found
Inspector report language: aluminum branch circuit, AL wiring, single-strand aluminum. The wires are stamped AL or aluminum at the panel. Multi-strand aluminum (stranded conductor) at the service entrance is not the same finding.
The bullet to put in your credit-request letter
Paste this into the bullet list in your credit-request letter and replace the bracketed fields with your own. The structure is what makes it work: finding, page citation, cost range with source, requested credit.
Aluminum branch-circuit wiring throughout (inspection report page X). Insurance carrier confirms pigtailing requirement (quote attached). Cost range $2,500 to $6,000 for COPALUM/AlumiConn pigtailing at all outlets, switches, and fixtures. Requested credit: $X.
How much to actually ask for
Anchor at the insurer's required treatment, not the cheapest option. If your carrier requires pigtailing, ask for full pigtailing cost. If they require full rewire, anchor at 70% of full rewire (consistent with how knob-and-tube negotiates).
Questions buyers ask before they negotiate
Is aluminum service wiring (the big cable from the meter) the same risk?
No. Aluminum service-entrance conductors are properly sized for their function and do not have the same overheating issue. The risk is in branch circuits inside the house.
Are CO/ALR outlets enough?
For some insurers, yes. For others, no. Confirm in writing with your prospective carrier before agreeing to the cheap fix.
Can I leave aluminum wiring alone if it has been fine for 50 years?
Insurers will not let you. The risk is cumulative, not constant. Most policies will either surcharge or require remediation within 30 to 90 days of binding.