Knob and Tube and Insurance

[Curt Bixel]

I have a duplex built in 1918.  I am considering using it as a short term rental, but am having difficulty finding an insurer who will insure a building with knob and tube wiring.  I had an electrician stop by today to provide an estimate for upgrading the electrical on the side that is vacant, and I am going to proceed with having that done.  (He did say, by the way, that the current wiring actually looks like it is in great shape.)

In any case, I doubt that any insurance company that will not insure a property with knob and tube will likely not care if one of the sides has been updated.  Thus, I doubt I will be able to proceed with the property as a short term rental until I can get the second side upgraded as well.

The electrician said that the process is disruptive enough that I should wait until the other side has vacated before upgrading the electical there.

Does anyone know of any insurance companies that might insure this property for a year until I can get the knob and tube replaced?

I currently have good insurance on the property through State Farm, but they will not do short term rentals.  

[David Lee Hall, III]

@Curt Bixel I agree with @Steven Wilson on don’t ask don’t tell.

Are you a licensed electrician? Do you have a home inspection stating by an independent party there is K&T wiring? Assuming there is no paper trail in the event of a claim, you are just a layman and don’t know the difference between types of wiring.

That said, I had the same issue with Erie Insurance. They would insure if you lived in it with K&T but not if it was an investment.

Overall K&T is safe if Not disturbed and not surrounded by insulation. It heats as load increases which can cause fires if packed with insulation. Overall though, it is outdated and if you can replace it, I would recommend doing so. You could try transferring the tenant from unit 1 to unit 2 after the upgrade. Maybe throw in an upgrade or two for their inconvenience and get them to sign a new lease extension. 😀