Hi , I am in closing stage of a triplex in Little Rock . It has three 100A breaker panels in the back of the home. 3rd party inspector noted knob and tube in the attic and highlighted it's risks. I've done a search on BP and have read a number of threads strongly recommending replacement of knob and tube so I am familiar with the safety concerns.

I contacted our insurance broker and to my surprise, the reply was " There is not a limitation on coverage for wiring. So there is no issue." So that's nice from a liability perspective but I am still concerned about tenant safety.

I confirmed seller will not replace knob and tube at their expense and their comment, "Per the electrician - there is active knob and tube wiring in the attic. It appears to be in good condition and he is not seeing any spots missing insulation. He is giving this a 9 rating for the condition of the wire on a 1-10 scale."

The 3rd party inspector also informed me that while K&T is a red flag, it's not illegal .

Additional context: We like the location and upgraded all the window AC units to one central unit for one unit and mini split systems to the other two units. So we really want to make this transaction work out.

My questions

1) With the breakers, is that considered a layer of safety in case of overload ?

2) If I don't replace K&T now, are there any additional precautionary measures I should take to further insulate the wiring?

3) Are there other questions I should be asking the electrician to ensure safety?

Below snippet from inspection report and photos of K&T in attic ,