On 5/25/2021 4:56 PM, micky wrote:
A friend of mine bought a house in Baltimore County 5 or 10 years ago
that still had knob and tube wiring, at least in the attic. My friend
says you can't get a mortgage if you don't pass inspectinon and you
can't pass inspection with k&t wiring.

What do you think happened?


I think it is modern redlining - an excuse to not mortgage (or insure)
old houses.

Example:
http://web.archive.org/web/20040825060154/http://www.maine.gov/pfr/ins/hearing_2003-13680.htm
An insurance company was sued by a homeowner. Insurance was not renewed
because the home had some K&T. The homeowner provided evidence the
installation was in good condition. "The company provided no
justification for its position that knob and tube wiring per se
automatically provides grounds for nonrenewal." The court ruled against
the insurance company.

Years back the NEC prohibited insulation in contact with K&T. I don't
think there was ever any evidence that had caused problems. The head
electrical inspector for Minneapolis, where a lot of insulation has been
added, provided a comment that he saw no "record of hazard". After the
provision was enacted California was sued and could provide no record
of a problem. California and a few other states now allow insulation.

K&T is still in the NEC although permitted uses are very limited.

In Minnesota, State Farm put a surcharge on houses that did not have the
service replaced in some time period (don't remember what it was). They
were reversed by the state insurance regulator. There was no insurance
casualty data that supported the surcharge.

I would rather have K&T than some of the early 2-wire Romex type stuff
with tar-paper(???) jacket. Particularly embedded in insulation you have
2 wires together heating up instead of 1.