Knob and Tube Wiring - An Insurance Nightmare

Knob & Tube Wiring with decayed insulating layer

Was your home built pre 1950. If so, it has almost assuredly had knob & tube wiring at some point although this systems was used as late as the 1970’s. The first big question is “Does my home still have it?”. If so, the next big question is “Is my home insured if I have a fire because of this wiring?”. The answer is likely no.

And that’s a scary thought!

What’s wrong with knob & tube wiring?

• The system is not grounded, making it more hazardous than modern wiring. The last thing you want with an ungrounded system is contact with water. Electricity and water don’t mix!

• Two-prong receptacles as opposed to today’s common three-pronged. There are so many modern day
appliances that you just can’t use, even small kitchen appliances. Some people choose to remove the third prong but this is such a dangerous choice. The absence of two pronged receptacles also doesn’t mean you don’t have knob & tube wiring. Some owners have made the choice to use modern receptacles and just wire them incorrectly. Another big danger and fire hazard!

• In most cases this system is restricted to a maximum of 60-amp service. Over the years, many owners make the dangerous choice to install higher-rated fuses to increase amps. This system was never intended to carry this additional current. Eventually the insulting layer will become brittle exposing more wiring or it will overheat leading to a fire.

What about home owner’s insurance?

Things have changed over the years. It used to be that you could find a company willing to insure knob & tube period. Over time the the insurers willing to undertake this liability started requesting site visits to make sure the existing knob & tube was in good physical condition and was not overloaded. More recently these insurers took the stance that “if” a home was on circuit breakers instead of fuses they would take on the liability.

Then it all changed! We recently sold an old Victorian home in Woodstock that appeared to have been completely retrofitted with current wiring. Upon a home inspection it was revealed that the entire second storey was all knob & tube. The end result was that the remainder of the house had to be rewired at the expense of the seller as buyer was unable to obtain long term insurance.

The best option available these days seems to be a 30-day allowance to allow for a complete rewire after a new owner takes possession. After that window passes the homeowner has no insurance related to knob & tube wiring.

But what if you have owned a house for years with knob & tube wiring and already have insurance? That is a very grey area and we were unable to get a clear answer as to whether these situations are covered now. Our best advice would be to contact your insurer and ask. Better to know and have to address this issue than to find out that you aren’t insured after it is too late.

If you have any questions related to the wiring in your home, we are always here to answer those questions. And if it turns out that you need further information, we work with many insurers and tradespeople and would be happy to connect you with the right people so that your family and your home are safe.