Can You Get Home Insurance with Knob and Tube Wiring?
The short answer: It’s tricky, but possible. Many insurers won’t touch a home with more than 10% knob and tube wiring, while others will require proof of an electrician’s safety inspection before they even consider coverage.
Common Insurance Roadblocks
- Increased Fire Risk: Insurers see knob and tube wiring as a potential fire hazard due to its lack of grounding and tendency to degrade over time.
- Limited Policy Options: Mainstream insurers may decline coverage entirely, forcing you to go with specialty (read: expensive) insurance providers.
- Higher Premiums: Even if you get coverage, expect to pay more than a comparable home with modern wiring.
Are There Grace Periods to Replace Knob and Tube Wiring?
Some insurers will offer a short-term policy under one condition: You agree to replace the wiring within a set timeframe (usually 30-60 days). This can give you enough time to close on a home and schedule the work.
However, if the house is 30-40% knob and tube (like many older Toronto homes), expect to pay for the replacement sooner rather than later.
Square One Insurance and TD Bank seem to have some options here. Check them out.
How Much Does It Cost to Replace Knob and Tube Wiring?
Replacing knob and tube wiring isn’t cheap. The cost will vary based on the home’s size and accessibility, but expect to pay between $15,000 and $25,000 for a full rewiring.
Cost Breakdown
- Basic rewiring: $15,000 – $19,000
- Additional conduit work: $2,000 – $5,000
- Electrical permits & inspections: Included in most quotes
How to Secure Home Insurance with Knob and Tube Wiring
If you’re buying a home with knob and tube, here’s how to navigate the insurance process:
- Get an Electrician’s Report: Some insurers will require a licensed electrician to confirm the wiring is in good shape.
- Shop Around: Not all insurance companies have the same policies—some specialty providers may be more flexible.
- Plan for Replacement: If you plan to renovate anyway, getting rid of knob and tube early will save future headaches.
Final Thoughts
Buying a home with knob and tube wiring isn’t necessarily a deal-breaker—but it does require some planning. If you’re serious about a property that still has it, make sure you budget for replacement and insurance hurdles.
Need a referral for a licensed electrician or insurance provider who specializes in older homes? Reach out to us—we’d be happy to point you in the right direction.
