Bay Area Homeowners Face Insurance Coverage Issues Due to Outdated Electrical Systems
SAN FRANCISCO (KGO) — Homeowners in the Bay Area with older homes are encountering insurance complications due to a type of outdated electrical wiring known as knob and tube.
Insurance companies are increasingly denying or canceling coverage for homes featuring this older system, raising concerns for both current homeowners and prospective buyers.
What is Knob and Tube Wiring?
So, what exactly is knob and tube wiring? Electrician John Peters and San Francisco developer Matt Ticknor, president of Knob and Tube Replacement, offer a straightforward explanation:
“Knob is a porcelain knob you drive into wood. The knob has a nail right in the middle, the nail goes into a wood stud. Then there’s a porcelain tube – the conductor runs through the tube and then the portion of the tube would go right through a wood stud, and you string like a clothes line between knob to knob to knob.”
The ceramic components serve as insulation. Ticknor pointed out that the wires carrying electricity have an older coating that often deteriorates over time. “I’m going to rub my fingers right over this, you can see my hand. It’s falling apart. Insurance companies hate it,” he said.
Insurance Implications
Brandi Mayo, a real estate agent, noted that knob and tube wiring was formerly not a major impediment to property sales. “It wasn’t something that was a deal breaker for buying property. It was like, OK there’s knob and tube, but now it’s become an insurance issue,” she explained.
Without insurance, obtaining a mortgage becomes difficult, unless the buyer is willing to opt for the more expensive California FAIR plan.
Current homeowners, too, are receiving a warning regarding the possible implications of knob and tube wiring. As insurance broker Jerry Becerra from Heffernan Barbary Insurance Services put it, “If we put it on the application, we are going to get declined.”
“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,” Becerra insisted.
Identifying Knob and Tube Wiring
Ticknor, whose business now focuses on the replacement of this type of wiring, shared how it can be identified in older homes. “Looking at a wall sconce and you can see that there are two wires, there’s a hot wire and a neutral wire,” he said.
The absence of a ground wire is another indication. Modern wiring, such as Romex, has a third, grounding wire.
Additionally, the outlets themselves are a telltale sign. Knob and tube wiring systems typically use outlets with two prongs, unlike the three-pronged outlets commonly used today. Some homeowners have attempted to install three-prong outlets in knob and tube systems, which can be dangerous, potentially damaging equipment during an electrical surge.
Safety Concerns and Insurance Companies
While some, like electrician John Peters, believe knob and tube wiring can be safe, the fire risk associated with older wiring is a concern for insurance companies. “I have it in my house, I’m going to keep it there, I hope, forever,” insisted Peters.
Although there are no recorded house fires caused by knob and tube wiring in San Francisco, insurance companies are concerned about the system’s potential as a fire hazard. When asked, the Fire Department has confirmed this.
Regarding the future of these policies, Becerra has a stark warning. “They’re going to get canceled or declined,” he stated.
