I'm working on a clients house that has K&T. It's a very large house
and the entire 2nd floor and part of the first is K&T and on one
breaker! These people were running an ac unit and 3 TVs plus all the
lights. The problem with replacing this stuff is that all the
connections are buried and hard to find. I've had to make large
inspection holes to make sure I've pulled out all of the connections.
I've also had a neighbor not quite completely close a hot water
radiator bleed vent. The dripping water from the second floor ran down
a major junction of mineral coated K&T in the kitchen. It started a
fire in the wall where there were 5 switches. The responding firemen
had to completely chop out the wall and part of the ceiling to make
sure the fire was out.
Richard

wrote:
probably CANT get homeowners or a mortage with K&T most insurance
wouldnt cover it as a fire hazard.

connections are soldered in the wall, without a box surrounding it.
unlike today all coinnections are in boxes.

after many years and heavy loads the solder weakens and the connection
can overheat and cause a fire, that happened to a buddy of mine
fortunately in his open basement cieling he smelled smoke and put it
out.

in a closed wall the house will go up in smoke.

have friends whos homeowners inspected their home and REQUIRED rewiring
for just this reason.

deduct cost of rewire from home sale price and for futher savings get a
home inspector they arent perfect but every trouble they find is money
in your pocket.

call your insurance agent and ask about K&T and please report back here
what they tell you...

K&T would be safe IF the connections had been made in BOXES but back
then no one thought of it