When to Learn the ‘K’ Word

I wanted to publicly respond to many an insurance enquiry in writing. I am of the opinion there is a lot of misinformation resulting from recent media coverage.

Contrary to popular belief it is possible to obtain homeowner’s insurance for a property purchase with knob and tube wiring; however it must be stressed there is no guarantee! The buyer must be proactive as there are a few extra compliance issues.

• Insurance can be granted for a period of 30 days and trades, such as electricians, are high in demand
• An electrical inspection is required; access to the home prior to possession in order to complete said form is ideal to make best use of grace period
• The thoroughly completed form will be submitted to the insurance company for review by the loss prevention officer
• The purchaser has the remainder of the 30 day allowance to comply with the ruling of the loss prevention officer. Best case scenario the wiring is approved as is or with little to no repairs. Worst case scenario the wiring needs to be replaced

I, along with other general brokers, do not have binding authority for risks with knob and tube wiring. In plain language, I do not have the power to promise insurance as it is considered an extenuating circumstance. The approval of the knob and tube will be dependent on the inspector’s findings, the loss prevention officer’s ruling and the compliance of any recommendations.

Knob and tube wiring, if installed correctly, is just as safe as current installations.

Please don’t hesitate to contact our team or your insurance professional with any further questions regarding this matter!