Knob and tube wiring, prevalent in older Bay Area homes, is now causing headaches for homeowners as insurance companies cancel policies. Electricians assert that the degrading condition of this outdated electrical system makes it unappealing to insurers. Brokers reveal that disclosing this wiring on insurance applications often results in denials, complicating mortgage approvals. Despite being once overlooked in property transactions, knob and tube wiring has become a critical insurance issue, leading many potential buyers to consider expensive alternatives like the California FAIR plan.
I'm going to rub my fingers right over this, you can see my hand. It's falling apart. Insurance companies hate it, said Ticknor.
If we put it on the application, we are going to get declined, revealed Becerra, who works for Heffernan Barbary Insurance Services.
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, said Mayo.
Without insurance, the lender will not approve the mortgage, unless the buyer pays for the expensive California FAIR plan.
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