With full disclosure about my remediated aluminum wiring in a beautiful 1976 New Mexico home, I received attractive normal risk quotes from both SafeCo and State Farm. Unlike the underwriters mentioned earlier, these underwriters clearly understood the aluminum wiring issue.
Here is the shady part of the equation. The unenlightened underwriters I mentioned at the beginning, know people are not disclosing aluminum wiring. It is a "don't ask, don't tell" situation. If you have a fire claim, and you have aluminum wiring, remediated or not, Farmers, Liberty Mutual, Fireman Funds, MetLife or The Hartford won't pay the claim. It is all hidden in all of that fine print. I found hidden on page 28 of the policy for my copper wired house.
My advice... be sure you have done the CPSC approved remediation, get a statement from a licensed electrician then find an insurer who gets it. The AlCopstore website lists some insurance companies that get it, and some of those who don't.
I still have one insurance broker who swears he can get insurance for a home with aluminum wiring, and a friend and colleague said she got one insured earlier this year, so I suspect this all or nothing underwriting requirement is new. All I can say at this point is, if your clients are considering a home with aluminum wiring, be sure that the owner will either replace it before closing or that you are absolutely CERTAIN you can get homeowners insurance on the property before writing the offer.
NJ Fair plan is very limited insurance and will not provide liability coverage for you and your family for the house.
If you are getting the 203k, it is wise to allow for the re wiring.