Current Insights

Ungrounded Wiring: Understanding the Risks

What is ungrounded wiring?

Ungrounded wiring refers to electrical circuits or outlets that do not include a dedicated grounding conductor or ground wire. While this was common in homes built before the 1960s, it does not meet current electrical standards. 

A ground wire provides a safe path for stray electricity to travel back to the electrical panel and into the earth.  This reduces the risk of electric shock, electrical arcing, fire, or damage to sensitive equipment. Without this path, electricity has fewer safe ways to dissipate when something goes wrong.

How can I tell if my home has ungrounded wiring?

Many homeowners are surprised to learn they have ungrounded wiring, especially if their outlets appear modern. Some common indicators include two-prong outlets, older electrical panels, or home inspection reports noting “no equipment ground.” 

However, appearances can be misleading.  In our work, we often encounter: 

  • Three-prong outlets installed on ungrounded circuits
  • Partial rewiring that makes a home look fully updated
  • Newer wiring connect to older, ungrounded circuits hidden in walls

Plug-in outlet testers can offer a quick check, but they don’t always tell the full story in older homes. These testers only assess conditions at the outlet itself. In some cases, they may indicate an outlet is “correct” because they detect a neutral-to-ground connection, even if that connection is improper or missing entirely. We also occasionally find “bootleg grounds,” where the neutral and ground are incorrectly tied together,  a condition that can mask serious safety issues and still pass a basic test.

The most reliable way to confirm whether your wiring is properly grounded is to have a licensed electrician assess the circuit from the panel to the outlet. This ensures you’re working with accurate information before deciding on upgrades.

Why didn't my Home Inspector flag this?

Home inspectors play an important role, but their assessments are visual and non-invasive by design. They typically cannot open walls, remove outlets, or test wiring back to the panel. If outlets appear modern and functional during basic testing, ungrounded wiring may not be obvious during an inspection.  In some cases, inspectors may note that a system reflects the standards of its era without identifying grounding limitations, with a brief note about consulting a licensed electrician to be certain. 

This is why electrical concerns sometimes surface after a purchase, during renovations, or when modern equipment is installed. A licensed electrician can provide a deeper assessment and explain what upgrades are recommended based on how the home is used today, not just how it was built decades ago.

Are ungrounded circuits safe?

Ungrounded circuits are not automatically unsafe, but they do provide less protection when something goes wrong. Without a grounding path, there’s no backup safety path if a fault occurs.  This means that issues like loose connections, damaged cords, or malfunctioning appliances can increase the risk of electric shock, overheating, or fire.

From a practical standpoint, we also see more nuisance issues in ungrounded systems. Modern electronics and appliances are designed with grounding in mind, and without it, they may be more prone to failure, unexpected behaviour, or damage from surges and electrical noise.

In other words, ungrounded wiring can function, but it offers a smaller margin for error,  especially as electrical demands increase.

What is the best solution?

The most reliable option is to re-wire any ungrounded circuits and add proper grounding. This ensures your home’s wiring meets modern safety standards and supports the demands of today’s electrical systems. 

Rewiring also provides an opportunity to address any other common issues we encounter in older homes, such as overloaded circuits, outdated breakers, or wiring that no longer meets code requirements, making it the best long-term investment for both safety and functionality.

Grounding does more than reduce the risk of electric shock and fire. A properly grounded system helps stabilize the electrical system, protects sensitive electronics, and allows surge protection to work as intended.  As homes add mini-split heat pumps, induction cooking, EV chargers, solar systems,  and home offices, grounding becomes increasingly important for reliability and longevity. Ungrounded systems were never designed to support this level of use, which is why addressing grounding issues is often part of future-proofing an older home.

What does a rewire involve?

We have written a separate post that explains what to expect when re-wiring your home, and we encourage you to read it for a detailed overview.  Rewiring doesn’t always mean opening every wall, and we work hard to ensure the least amount of damage and disruption possible.  In many cases this means upgrading wiring circuit-by-circuit, focusing on the areas where safety and performance matter the most.

A rewire also allows electricians to assess the overall condition of the system, and ensure that breakers, protections, and wiring are properly matched.  While it requires a larger upfront investment, it’s often the least disruptive and most cost-effective option over the long term, especially when coordinated alongside renovations or other electrical upgrades.

  • Sometimes a 2-prong receptacle is enough to suspect that there is ungrounded wiring, because rewires should always include an upgrade to the outlets.
    Sometimes a 2-prong receptacle is enough to suspect that there is ungrounded wiring, because rewires should always include an upgrade to the outlets.
  • Ungrounded wire on a light switch
    Ungrounded wire on a light switch
  • Ungrounded wire on a light switch
    Ungrounded wire on a light switch
  • Ungrounded wire connecting a new 3-prong receptacle
    Ungrounded wire connecting a new 3-prong receptacle
  • A plug-in tester indicating there is no ground present at this outlet.
    A plug-in tester indicating there is no ground present at this outlet.

Is there a lower-cost alternative?

Yes.  In some situations, installing Ground Fault Circuit Interrupters (GFCIs) can be a practical lower-cost safety upgrade when full rewiring isn’t immediately possible. The Canadian Electrical Code (as enforced in New Brunswick) permits GFCIs to be installed on ungrounded circuits to reduce the risk of electric shock.

GFCIs work by constantly monitoring the flow of electricity and shutting off power if they detect a dangerous imbalance, even when no ground wire is present. They can be installed at individual outlets, at the first outlet in a circuit to protect downstream receptacles, or at the electrical panel.  

While GFCIs are a valuable safety tool, they are not a replacement for proper grounding.

GFCIs can be a reasonable interim solution when rewiring isn’t immediately feasible, but it should never be considered a permanent solution.  We recommend them as an added safety feature when rewiring is not immediately possible, improving safety while allowing homeowners time to plan for more comprehensive upgrades. 

Next Steps

If you’re unsure what type of wiring your home has, or what level of upgrade makes sense for your situation, a professional assessment can provide clarity without pressure. If you already know your home has ungrounded wiring, we encourage you to review your options and choose what best fits your needs, plans, and budget.

Rewiring offers the most complete and long-lasting solution, while GFCIs provide an interim safety upgrade when full rewiring isn’t immediately possible. Understanding your options is the first step toward improving safety and peace of mind.

Summary 

Ungrounded wiring is common in older homes and isn’t automatically unsafe, but it offers less protection when faults occur. A proper ground provides a safe path for fault current, protects modern electronics, and allows surge protection to work effectively.

GFCIs are code-approved on ungrounded circuits and improve shock protection, but they primarily protect people, not equipment or the electrical system itself. Surge protectors also depend on grounding to be fully effective.

Rewiring provides the most complete, long-term solution. GFCIs can be a reasonable interim step, but they don’t replace the benefits of a properly grounded system.