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Leery Insurance
Why are insurance companies leery?
At times, homeowners with this older wiring can find it difficult to obtain
insurance on such homes because some insurance companies are skittish about
taking on a house they perceive as risky.
Many insurers require an inspection to show that the coating on the wiring is in
good condition. If it is, they may write you a policy. If the coating is cracked
or deteriorating, or if a determination can't be made, the insurer may ask the
homeowner to hire a qualified electrician for further evaluation and/or repairs.
Because older houses often have a lower capacity in their wiring systems,
homeowners should make sure they don't have too many electrical gadgets plugged
in, such as computers, stereos, and so forth. An electrical overload could
easily result in a fire.
While Knob and tube wiring may continue to be safe to use, Proper maintenance is
the key. Where wire insulation is brittle or cracked, it should be replaced,
according to Mark W. Earley, assistant vice president and chief electrical
engineer for the National Fire Protection Association. Earley points out that
proper maintenance is important with all electrical system components.
State Farm Insurance Co., for example, doesn't look favorably on houses with
knob and tube wiring, says Phil Supple, a company spokesperson. Supple points to
two concerns: First is the age of the house. "Because knob and tube was
generally used so long ago, we are concerned about the deterioration of the
electrical system as a whole," Supple explains.
Second, State Farm worries about the lack of a ground wire with this style of
wiring. Knob and tube consists of two wires: a "hot" one that carries
electricity to its destination and a "neutral" one that completes the circuit.
Modern wiring systems reduce the chances for creating a fire hazard through the
use of a grounding wire.
Having a circuit breaker can help lower the risk for a fire in a home with knob
and tube wiring.
State Farm requires a certificate of inspection from a qualified electrician
before it will insure an older home, and if the electrician gives a favorable
assessment, the company may consider writing insurance for the house.
Mike Johnston, education coordinator for codes and standards for the
International Association of Electrical Standards, agrees that the lack of a
ground wire can be a problem, especially if the wiring is old and in shoddy
shape.
Some insurers may also point to the lack of circuit breakers as a potential
problem with knob and tube wiring. Having a circuit breaker can help lower the
risk for a fire in a home with knob and tube wiring.
In the end, any homeowner with knob and tube wiring, or the potential buyer of
such a house, should hire an electrician to give the system a complete check. If
an inspection uncovers problems, you should make the necessary repairs for
personal safety as well as insurance concerns.
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