Mar 26, 2025
California homeowners are already struggling to maintain homeowners insurance, as wildfires, extreme weather and aerial drone images can increase the risk of policy cancellation.
Now, ABC 7 News reports that Bay Area homes with knob-and-tube wiring — a dated electrical system — face an even greater risk of cancellation.
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"If we put it on the application, we are going to get declined," Jerry Becerra, an insurance broker at Heffernan Barbary Insurance Services, told ABC 7 News. "I tell people it's best to be proactive. If you've got knob-and-tube in your building, don't wait until you get canceled."
Most homes in San Francisco were built before the 1950s and have knob-and-tube wiring, creating a massive headache for many homeowners.
So, why is this a risk?
What's the issue with knob-and-tube wiring?
Knob-and-tube (often shortened to K&T) wiring is an outdated electrical wiring system used in homes built from the late 1800s to the mid-20th century, according to the International Association of Certified Home Inspectors. It consists of single-insulated copper wires running through ceramic tubes connected to ceramic knobs installed on wood beams of the home.
While it was considered safe when installed, K&T lacks a grounding wire, making it more susceptible to electrical faults and fire hazards, especially when modified or covered with insulation. Many insurers consider it a liability, leading to higher premiums or outright policy cancellations.
Without insurance coverage, homebuyers cannot get a mortgage unless they use the California FAIR plan, a last-chance insurance option provided by the state. The FAIR plan is more expensive and offers limited coverage for most homeowners.
However, some Californians argue that K&T is safe. John Peters, a long-time electrician, has K&T in his home and insists it's not a problem.
"I have it in my house, I'm going to keep it there, I hope, forever," Peters told ABC reporters.
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Even the fire department reports no increase in risk. ABC 7 News spoke to the fire department, which shared this statement:
"The department has not seen trends in knob-and-tube electrical wiring residential structure fires, according to our fire department investigators."
However, insurance companies insist K&T is a fire risk and are refusing to cover homes with this type of wiring. Becerra told ABC reporters that homeowners who do nothing to update their knob-and-tube wiring can be sure of one outcome:
"They're going to get canceled or declined."
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What to do if your home has it
If your home still has knob-and-tube wiring, it's best to get ahead of the problem. Start by finding out if insurers are canceling policies for K&T homes in your area.
In some states, insurers may offer coverage as long as most of your electrical wiring has been updated, even if some knob-and-tube remains. If you're concerned about coverage or want to reduce your risk, here are some steps to take:
- Get an inspection: Have a licensed electrician assess your wiring. Some older systems are still safe, but if they are deteriorating or overloaded, replacement may be necessary.
- Consider upgrading: Replacing K&T with modern wiring can make your home safer and may help you qualify for lower insurance rates or discounts. Some insurers require proof of replacement before renewing coverage.
- Shop around for coverage: Not all insurers have the same policies regarding K&T wiring. A broker may help you find a provider willing to insure your home while you plan upgrades.
- Look for other outdated systems: Old plumbing, aging roofs and outdated heating systems can also lead to higher premiums or coverage issues. Addressing these can improve safety and potentially lower insurance costs.
- Install modern safety features: Smoke detectors, fire extinguishers and whole-home surge protection can help offset insurance concerns and demonstrate that your home is at lower risk.
California homeowners should act now — waiting until cancellation could leave you scrambling for coverage or uninsured. If you live in other states, research insurance policies and find out if K&T could cause issues down the road. Addressing problems now can save you money and stress in the long run.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
