from mike silver m silver company
ive seen extensions as recently as this summer.
we just looked at a property for Charlene that has a lot of knt so she could certainly testify...
Check with Liberty or State Farm - unless they have changed their policies recenty, both of those companies allowed this in the past.
Knob and tube isn't inherently dangerous, but it wasn't built for today's requirements. $2,000 sounds like a fix to just replace visible knob and tube - not all knob and tube, so you will still have it in the walls.
There is a it of a misconception... KnT is not necessarily a bad thing until you talk to insurance agents. KnT is definitely an older form of wiring, meets code (as built), but in good condition (as with any wiring) it is fine... it is brittle and can easily damaged... with that being said, you are better off replacing all of it (visible or not).
You might want to talk to several insurance agents and get other opinions... we've seen 30/60/90 day policies periods for clients to get their wiring upgraded. This allows you to close, THEN get the repairs. Talk to an agent that represents more than one company... that will be your best bet.
There are hundreds if not thousands of homes in maine with knob n tube wiring... so I think with some calling around, you can find someone that will at least give you a period of time to upgrade.
For your piece of mind though, KnT in good condition is not Dangerous...it is not law, code or anything else driving its' replacement... it is purely the Insurance industry.
(let me know and I can give you name of an agent that might be able to help)
The house has "knob and tube wiring" which is very old and dangerous, and no insurance company will insure it, even on condition of it being fixed after closing. I have the option, before closing, of paying a minimum of $2,000 to get the basics rewired, but there is always the chance that the insurance or the sale will not go through, in which case I'm out $2k.
Is there any way around this catch-22?
There's a good chance that the house will not sell anytime soon since anyone else using a mortgage to buy it will have the same problem.
1. Walk away for now, avoid April property taxes, heating bill etc, save more money, and come back in the spring? I would risk house being sold (unlikely) or not getting mortgage approval second time around.
2. Risk $2k and get it over with?
IS it common or ever done at all that a buyer would fix something on a home before owning it?