Insurance for duplex with Knob and Tube

Member since 2022 · 3 posts · 1 vote

I have a duplex on the east side of Cleveland that has a significant amount of knob and tube. The quotes I’m getting are fairly large (as high as $96k). My insurance is going to be dropping me unless I get it fixed. Are there other insurers that will cover this? I’d prefer to put off this project for another two years, but I plan to do it in the not too distant future.

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Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

That's a CRAZY price, regardless of where you are located!

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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 676 posts · 259 votes
5d
96k for insurance or 96k to fix the electrical?
It's unlikely you'll find something other than very bare bones coverage if that.
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Adam Bishop
OP
Member since 2022 · 3 posts · 1 vote
5d
$96k to update the electrical.
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- Richard F.
  Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
  5d
  That's a CRAZY price, regardless of where you are located!
  3 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
5d
Almost 100% of the Cleveland area duplexes have knob and tube. You need a different carrier.
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- Adam Bishop
  OP
  Member since 2022 · 3 posts · 1 vote
  5d
  Exactly why I’m asking. Everyone I’ve called isn’t underwriting new policies. I also posted on a Facebook group and the feedback was that I needed E&S insurance
  0 Reply
- James Wise
  Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
  4d
  Reach out, I've got several carriers who can assist.
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Diana Khan
Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 298 posts · 111 votes
5d
Quote from @Adam Bishop:
I have a duplex on the east side of Cleveland that has a significant amount of knob and tube. The quotes I’m getting are fairly large (as high as $96k). My insurance is going to be dropping me unless I get it fixed. Are there other insurers that will cover this? I’d prefer to put off this project for another two years, but I plan to do it in the not too distant future.
@Adam Bishop, I would definitely keep shopping the insurance side, but I would also take a closer look at that $96K electrical quote before deciding you have to live with that number. I’ve seen owners get very different answers once they have two or three licensed electricians price the same scope. I would ask each one to separate what truly needs to be done now from what could reasonably be phased over time.
The other thing I would be careful about is letting the current policy lapse while you are figuring this out. If there is a mortgage on the property, I would also check what your loan requires for continuous coverage. I would want a new policy lined up before the old one ends, even if it is only a temporary solution while you plan the electrical work.
I’d be glad to stay connected, @Adam Bishop. Situations like this are a good reminder that the repair, insurance, and financing pieces all have to be looked at together.
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Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
5d
we do run into this in central oh that getting insurance is tough. I don't know if anyone still carries it but we generally have had success with smaller local firms but again the price is higher and generally it is difficult to get done. and the last experience I had was a few years ago so who knows now.
but rewiring a house should not be 96K if that is what i'm understanding.that's gutting the house and redoing everything budget.
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Golan Corshidi
Rental Property Investor · Cleveland, OH · Member since 2018 · 95 posts · 61 votes
4d
I've dealt with this same issue before. Definitely much cheaper to do the electrical but my insurance guy in Cleveland has been able to write us policies. Hit me up happy to help!
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Min ZhangBusiness Member
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
4d
Hey Adam! That’s a tough one, especially with a quote that high. Have you tried talking to an independent insurance broker and checking with a few different carriers? It might be worth seeing what options are available before committing to the full project.
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Igor Ganapolsky
Englewood, NJ · Member since 2018 · 355 posts · 59 votes
3d
That $96K number sounds like a full gut and rewire. When I'm looking at older properties at tax deed auctions, the electrical is always a mystery until you open up the walls. I've seen quotes swing from $15K to $80K depending on whether you're doing a full code-compliant rewire versus just making it safe and insurable.

Two things that might help:

First, get a detailed scope from each electrician. One might be quoting replacing every outlet and switch, while another just focuses on the knob and tube runs and panel upgrade. Ask them to break out what's required for insurance compliance versus what's nice-to-have.

Second, on the insurance side, you're hearing right about E&S (excess and surplus lines). That's the market for properties that don't fit standard underwriting. The premiums are higher, but the carriers there are used to dealing with older housing stock. James Wise is right that Cleveland has tons of K&T, so there have to be carriers writing it. If your current guy is dropping you, start calling independent brokers who specialize in investment properties, not the big national carriers.

The key is not letting your current policy lapse while you figure this out. Even if you need a temporary policy with a K&T exclusion, that keeps you covered and satisfies your mortgage lender while you plan the electrical work.

Good luck with it.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
3d
Adam, with a duplex that has a significant amount of knob-and-tube wiring, I’d treat this as both an insurance problem and a capital-planning problem.
You may find a carrier willing to insure it temporarily, but I would not assume that is a long-term solution. Some insurers will decline older electrical systems entirely, while others may require an inspection, surcharge the policy, limit coverage, or condition renewal on remediation.
Since the quotes you’re seeing are as high as $96K, I’d get a licensed electrician to separate the project into must-do safety/insurance work versus full modernization. Sometimes the entire property does not need to be rewired at once, but you need a clear scope before deciding whether insurance shopping or phased replacement makes more sense.
I’d also ask an independent insurance broker who works with older Cleveland multifamily, not just a captive carrier. They may know which insurers are still comfortable with knob-and-tube and what underwriting conditions they require.
From the tax side, if you replace the wiring as part of a broader upgrade, I’d keep the costs documented separately. A major electrical replacement is generally a capital improvement rather than a routine repair, so it would typically be capitalized and depreciated rather than fully deducted in the year paid.
If you do this in phases, keeping the invoices and scope by unit and component will make the accounting much cleaner.
Happy to connect!
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