locally I helped gut a home after a fire, that wasnt electrical in
nature. cat knocked over a lamp 139K in damages.

I could see places where the K&T had overheated, the house was on
breakers, K&T connections were buried in walls, not accessible, much
of the wiring was missing its insulation even in areas undisturbed by
the fire.

no where did i say rewire today

but its a good thing to replace, at least off all outlet circuits.

hey at resale time buyer will want discount for rewiring, or just
plain not buy.

and K&T isnt getting any newer, and insurance just more picky.........