‘Don't wait until you get canceled’: Bay Area homeowners could lose insurance coverage for having this 1 outdated electrical system — here’s why it’s a risk and how to stay insured

What's the issue with knob-and-tube wiring?

Knob-and-tube (often shortened to K&T) wiring is an outdated electrical wiring system used in homes built from the late 1800s to the mid-20th century, according to the International Association of Certified Home Inspectors. It consists of single-insulated copper wires running through ceramic tubes connected to ceramic knobs installed on wood beams of the home.

While it was considered safe when installed, K&T lacks a grounding wire, making it more susceptible to electrical faults and fire hazards, especially when modified or covered with insulation. Many insurers consider it a liability, leading to higher premiums or outright policy cancellations.

Without insurance coverage, homebuyers cannot get a mortgage unless they use the California FAIR plan, a last-chance insurance option provided by the state. The FAIR plan is more expensive and offers limited coverage for most homeowners.

However, some Californians argue that K&T is safe. John Peters, a long-time electrician, has K&T in his home and insists it's not a problem.

"I have it in my house, I'm going to keep it there, I hope, forever," Peters told ABC reporters.

Even the fire department reports no increase in risk. ABC 7 News spoke to the fire department, which shared this statement:

"The department has not seen trends in knob-and-tube electrical wiring residential structure fires, according to our fire department investigators."

However, insurance companies insist K&T is a fire risk and are refusing to cover homes with this type of wiring. Becerra told ABC reporters that homeowners who do nothing to update their knob-and-tube wiring can be sure of one outcome:

"They're going to get canceled or declined."

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What to do if your home has it

If your home still has knob-and-tube wiring, it's best to get ahead of the problem. Start by finding out if insurers are canceling policies for K&T homes in your area.

In some states, insurers may offer coverage as long as most of your electrical wiring has been updated, even if some knob-and-tube remains. If you're concerned about coverage or want to reduce your risk, here are some steps to take:

• Get an inspection: Have a licensed electrician assess your wiring. Some older systems are still safe, but if they are deteriorating or overloaded, replacement may be necessary.
• Consider upgrading: Replacing K&T with modern wiring can make your home safer and may help you qualify for lower insurance rates or discounts. Some insurers require proof of replacement before renewing coverage.
• Shop around for coverage: Not all insurers have the same policies regarding K&T wiring. A broker may help you find a provider willing to insure your home while you plan upgrades.
• Look for other outdated systems: Old plumbing, aging roofs and outdated heating systems can also lead to higher premiums or coverage issues. Addressing these can improve safety and potentially lower insurance costs.
• Install modern safety features: Smoke detectors, fire extinguishers and whole-home surge protection can help offset insurance concerns and demonstrate that your home is at lower risk.

California homeowners should act now — waiting until cancellation could leave you scrambling for coverage or uninsured. If you live in other states, research insurance policies and find out if K&T could cause issues down the road. Addressing problems now can save you money and stress in the long run.