When you buy home insurance, insurers always assess the level of risk you present as a policyholder. For instance, those with a history of missed payments or repeated claims often pay more than those who always pay on time or who have never filed a claim.
Similarly, the level of risk your home presents plays a key role in calculating your premium. In this case, if your house, or the one you’re considering purchasing, is equipped with knob and tube wiring, you may find yourself in a tricky situation, as this outdated electrical system often raises red flags among insurers.
In this article, you’ll learn what knob and tube wiring is, why it’s considered dangerous nowadays, and how it can impact the price and availability of homeowners insurance.
What is knob and tube wiring?
Knob and tube wiring is a type of electrical system used in homes from the early 1900s to the 1950s. The Center for Energy and Environment explains that “It is named for the ceramic knobs that support the wires, and the tubes that protect the wires through the wood framing of the home.” It is no longer used in Canada because it does not meet today’s electrical standards and demands.
Will insurance cover a home with knob and tube wiring?
Knob and tube wiring in your home can make it substantially more difficult to buy – and even renew – homeowners insurance. While it’s not impossible to find coverage (at least for now), if you do manage to find an insurer willing to take you on, you’ll likely face higher premiums. You may even be required to have the system regularly inspected by a licensed electrician as part of your policy terms.
The primary reason many home insurance companies are reluctant to – or outright refuse to – cover homes with knob and tube wiring is the safety risks these outdated systems are known to present. Even if the system hasn’t been improperly installed, poorly maintained, damaged, or misused, the age and technology alone are enough to raise valid concerns. Remember, knob and tube wiring stopped being installed around the mid-1950s – over 75 years ago!
Simply put, these older systems are less equipped to handle modern demands safely, which is why many insurers see knob and tube wiring as a liability, even if it appears to be in good condition.
Why is it dangerous?
According to the International Association of Certified Home Inspectors, knob and tube wiring is not “inherently dangerous.” However, it can pose significant safety risks, particularly because in some homes, the system may be between 75 and 125 years old.
One of the biggest concerns with knob and tube wiring today is its lack of grounding. Without a ground wire, the risk of electrical shock and fire increases. Here’s a more technical explanation from Canadian Underwriter:
“The primary fire risk in older houses arises when unqualified people add outlets or lights without an electrical permit. When these circuits are added to the knob-and-tube, they can be dangerous. Knob-and-tube was intended for both wall outlets and ceiling lighting up to 60 watts. But if a homeowner began using 100-watt light bulbs, chances are the wiring behind those fixtures will overheat and need to be replaced.”
To make matters worse, these systems were often modified, repaired, or extended by homeowners or DIYers who may not have fully understood the safety risks associated with doing so. When you add the age of the wiring, its outdated technology, and the potential for unprofessional alterations, it’s clear why insurers, contractors, and safety experts consider knob and tube wiring a safety hazard.
Is it illegal?
Knob and tube wiring is no longer used in Canadian homes. In some provinces, such as Ontario, it has long since been removed from the Electrical Safety Code, making it prohibited to install. However, it is not illegal to have it in older homes, though upgrading or replacing it may be required for safety or insurance purposes.
Do you have to remove it?
No, you do not necessarily have to remove knob and tube wiring. For example, in Ontario, the Electrical Safety Authority (ESA) allows homeowners to keep knob and tube wiring if it meets specific criteria set out by the ESA and passes an inspection conducted by a licensed electrician.
However, even if you’re technically allowed to keep the wiring in your province, you might not want to.
Not only may knob and tube wiring not meet modern electrical demands and pose a safety hazard, but certain insurers may even refuse to insure you because of it. Since homeowners insurance is mandatory if you have a mortgage, and is generally recommended even without one, you may ultimately find that you’ll need to remove the wiring to secure or maintain coverage regardless.