Knob and Tube Wiring insurance options ?

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Knob and Tube Wiring insurance options ?

Patrick Shep
Rental Property Investor · Washington, DC · Member since 2018 · 98 posts · 38 votes

Im looking to understand buying a place that has knob and tube wiring. I’ve read some insurance companies will not insure it.

What’s been your experience to get insurance with knob and tube? Any recommended insurance companies?


thx

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John Mocker
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
4y

Larry,

we represent over a hundred carriers.  Of our carriers, only one will write a homeowners or dwelling fire policy on a property with Knob & Tube wiring (and that company will only do it if the knob & Tube is less than 10%).  Your agent will probably have to go to the excess/surplus market.  Those policies will generally be more expensive and have more exclusions than a standard policy.  

When assessing a new property, you should have your electrician look for visible Knob & Tube
or Aluminum wiring and also for indications that some of the wiring was updated but not all (could still have knob & tube or aluminum wiring in the walls).

If you do buy a property with Knob & Tube or Aluminum wiring, you should budget for a complete upgrade of the wiring.

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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    4y

    Larry,

    we represent over a hundred carriers.  Of our carriers, only one will write a homeowners or dwelling fire policy on a property with Knob & Tube wiring (and that company will only do it if the knob & Tube is less than 10%).  Your agent will probably have to go to the excess/surplus market.  Those policies will generally be more expensive and have more exclusions than a standard policy.  

    When assessing a new property, you should have your electrician look for visible Knob & Tube
    or Aluminum wiring and also for indications that some of the wiring was updated but not all (could still have knob & tube or aluminum wiring in the walls).

    If you do buy a property with Knob & Tube or Aluminum wiring, you should budget for a complete upgrade of the wiring.

    4Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    Where is the property? Knob and tube is pretty rare in the DC, so Im just curious where its located.

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    1Reply
  • Patrick Shep
    OP
    Rental Property Investor · Washington, DC · Member since 2018 · 98 posts · 38 votes
    4y

    Russell...it's out of state in upstate NY. I need to get an electrician to look at it and negotiate if the seller is open to it.

    1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    Ask the seller who they are using. My brother and in laws in MN have knob and tube everywhere and it’s not an issue getting insurance because every house in the neighborhood that hasn’t burnt down or been torn down in the last 50 years has it. 

    1Reply
  • Brandon Plombon
    Banker · Minneapolis, MN · Member since 2017 · 257 posts · 143 votes
    4y
    Quote from @Bill B.:

    Ask the seller who they are using. My brother and in laws in MN have knob and tube everywhere and it’s not an issue getting insurance because every house in the neighborhood that hasn’t burnt down or been torn down in the last 50 years has it. 


     Yes - It is still fairly common here in Minnesota.

    Quote from @John Mocker:

    Larry,

    we represent over a hundred carriers. Of our carriers, only one will write a homeowners or dwelling fire policy on a property with Knob & Tube wiring (and that company will only do it if the knob & Tube is less than 10%). Your agent will probably have to go to the excess/surplus market. Those policies will generally be more expensive and have more exclusions than a standard policy.

    When assessing a new property, you should have your electrician look for visible Knob & Tube
    or Aluminum wiring and also for indications that some of the wiring was updated but not all (could still have knob & tube or aluminum wiring in the walls).

    If you do buy a property with Knob & Tube or Aluminum wiring, you should budget for a complete upgrade of the wiring.

    As John stated it can be hard to find traditional carriers to insure knob & tube.

    0Reply
  • Masha Rizzi
    Investor · houston, TX · Member since 2021 · 44 posts · 17 votes
    4y

    I actually just purchased a home that also has knob and tube wiring!! It was pretty frustrating finding coverage and in the end I only found one provider that would cover it (Tower Hill Prime Insurance Co.). The policy isn't particularly great so I plan on getting a new one once I get all the Knob & tube out during reno. 

    2Reply
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