Insurance and knob & tube wiring

[Baersmith2]

My spouse and I recently purchased a bungalow in Des Moines that has a
mix of knob & tube wiring and updated electrical. Our insurer has
insisted that we have all of the knob & tube removed for them to cover
the house. A local electrician told us this is unheard of in Des
Moines and recommended we find another insurance company rather than
hire him to do unnecessary work. However, several local agents have
now confirmed that they don't work with any insurers that cover houses
with knob & tube. Does anyone have any advice/insight about this? At
this point, I'd appreciate any ideas about insurers that might cover
us, or, if need be, recommended electricians.

Many thanks for your help!
- Karen

[Steven Wilke-Shapiro]

Undisturbed knob and tube wiring is not necessarily or inherently unsafe.  Over time the insulation can decay and if walls are disturbed (particularly during remodeling when plaster is removed or walls insulated) it can cause potentially hazardous conditions. 

Some reasons why Insurance companies and homeowners don't like K&T:

• It is not possible (or very difficult, and possibly not code compliant) to install a GFCI protected or grounded outlet because there is no ground wire.
• If the insulation is disturbed, a short can be made between the two wires, though they are typically separated by several inches.
• Wires probably weren't sized adequately for today's power loads - the eight-plug power strip didn't exist in 1917!
  

Insurance companies are scared of K&T.  It may be possible to find a company that insures a house with K&T - I don't know of any offhand since we didn't have to do the search, but I'm sure that someone on the list has run into this situation. 

As a stopgap measure you could see if they would allow you to replace all the visible wiring in the basement.  It is often relatively easy to fish wire up from the basement through existing walls to rewire first floor outlets and fixtures.... if you have an open basement ceiling.  It will still probably be a several thousand dollar venture.  Upgrading the panel will be an additional cost if required.

In general, it's a good idea to install adequately sized, grounded wiring whenever possible.

Steve