1940 Home with knob and tube wiring.

[Attila Bertalan]

Hi All. My 1940 Rehab is Pending in Escrow. The potential buyer and their agent called about 10 Companies for home insurance but none of them would provide coverage because even though the panel has been upgraded w/in 10 years, the wiring is the old knob and tube. Would anyone recommend an Insurance Co. that will provide coverage. The house is 1940, 933 SqFt, one story,2/1, on raised foundation. Can someone give me a ballpark number of how much would cost to rewire the entire house. All input is greatly appreciated. Thank You in advance.

[John Mocker]

Attila,

I feel for you.   I had a good friend & client go through it.  I have a couple of suggestions:

1. if you are doing a rehab that will include the wiring, you may get a Renovation Builders Risk policy to cover you. 

2. If the regular market will not cover it, have your agent check in the Excess/Surplus lines.  At least in our area there are markets that will cover a building with knob & tube.  The cost is higher and there are typically more exclusions on those Excess Lines policies.  That was what we did for my friends rental until he was able to update all the wiring.

Hope it works out.