A knobby repair topic
Given the discussion that popped up on yesterday's entry, I moved this entry to today. Knob and Tube wiring is a problem for home buyers. (I will get to insurance problems in condos another day.) Here's my take on old wiring:
I had the same problem two transactions in a row: the seller installed a new circuit breaker box in preparation for sale. Both sellers had advertised an updated electrical system. But, both had their new boxes connected to old knob and tube wiring. One seller immediately gave my client a price reduction to offset the cost of removal; the other got indignant that she “took excellent care of this home” and threatened to go to cancel the transaction. In the end, both of my clients bought a home with a price reduction to offset removal of the knob and tube.
So what’s this knob and tube wiring?
It’s wiring from the 1920’s. Look for two wires running in parallel with white ceramic knobs about the size and shape of a spool of thread. I spot it most often in unfinished basements and attics. It doesn’t have a separate ground wire, like modern wiring. Its insulation is aging poorly by now.
When I started in real estate (1991), there were a couple of homeowner insurance companies that would not insure a home with knob and tube wiring. Now, there is no company that will provide ongoing insurance. (I was told that the Fair Plan might handle it.)
The topic of knob and tube comes up for the insurance companies because, upon purchase, the buyer is in a position to know whether the inspector found any. Longstanding homeowners mostly don’t know. So their insurance company doesn’t know. When a buyer purchases his/her homeowner’s insurance, the insurer can ask about knob and tube. If it is in the house and in use, there are two responses from insurers: 1. Come back when you remove it. 2. We’ll insure you, but you have to remove it within 30, 60, 90 days of purchase. Some companies want it physically removed while others are satisfied if it is disconnected.
What got me about these two purchases is that both had an electrician working on the system just before putting the house on the market. Why did the seller’s electricians connect old wiring to a new box? Is this malpractice? Wouldn’t it be in the electrician’s interests to say, “there is some old wiring here that is grossly out of code, I should replace that, too, if you want a safe, insurable system.” It’s more work, thus more pay for that electrician. It is also doing the right thing for the house.
