How Does Knob And Tube Wiring Affect Your Home Insurance?

Home insurance is one of the types of insurance policies that you can purchase from insurance companies. It is a policy usually subscribed to in order to protect a building from losses and damages that could potentially occur as a result of extreme weather, theft, and fire.

Depending on the type of policy, the insurance company and the province you are in, the price of home insurance varies from one insurance company to the other.

There are various things that affect home insurance knob and tube wiring being one of them. It is important to know how knob and tube wiring affects your home insurance policy, as you may end up paying for it in the long run.

In this article, we will look at the effect knob and tube wiring insurance have on the cost of your insurance policy.

Before getting started on the ins and outs of knob and tube wiring in homes in Canada, be sure to visit if you’re looking for quality insurance quotes in BC.

What Is Home Insurance in Canada?

Home insurance is a form of a property insurance policy usually bought by homeowners to protect their residence from any potential loss or damages that may occur due to unforeseen events. In a home insurance policy, the furniture and other assets in the home are covered by the policy. It also covers liability coverage against accidents on the property. 

It is worthy to note that home insurance is different from mortgage insurance or a home warranty. A home warranty is a contract that provides for the repairs or replacements of home gadgets such as water heaters, ovens, and pools. The contract is usually for a period of one year and is mandatory for a homeowner to have in order to qualify for a mortgage.

Mortgage insurance on the other hand is required by a bank or mortgage provider for homebuyers making a down payment of less than 20% of the cost of the property. This type of insurance policy usually has a liability limit which determines the amount of coverage the home is entitled to in the event of damage or loss. 

What Does Home Insurance Cover in Canada?

Home insurance coverage typically covers your residence and the appurtenances from any loss or damage that may occur. You also have the opportunity to purchase additional coverage for greater protection. Good home insurance protects your building from losses or damages that may be caused by fire, hail, windstorms, and lightning strikes.

Generally, home insurance does not cover damages and losses that occur as a result of any form of natural disaster. You may need to purchase separate policies for these. However, home insurance typically covers the following:

  • Your Dwelling

This is one of the basic covers you get with a home insurance policy. This protects the structure of the home in terms of the foundation, roof and walls. Basically, the structural parts of the house are covered by home insurance. It also covers other types of structures attached to the house such as a garage, swimming pool, or deck.  

  • Other Structures

Home insurance also covers other structures that are not attached to the house. Structures like detached garage, fence, and tool shed. These are structures not necessarily attached to the main building but this type of insurance policy makes coverage provisions in the policy. 

  • Personal Property Protection 

The home insurance policy by default protects the building and other structural components of the building.

One advantage of the policy is that it also covers your properties inside the building. For example, if your gadget and furniture are stolen or destroyed in a fire, home insurance covers the replacement and repairs of such properties as long as they are damaged or destroyed under a covered risk. Some insurance companies offer you extra coverage for other items within the house such as jewellery, furs, wristwatches and other adornments. These are usually insurance covers that must be bought separately. 

  • Liability protection

This aspect of home insurance protects you from any liability you may incur from the injury suffered by a third party not living with you in your home. Visitors to your home may sometimes get injured. For example, a visitor that trips over a broken porch step.

A bodily injury liability may help cover both the medical and legal expenses if you are found at fault for the injury. This type of cover basically covers for your negligence in your home that may cause harm to a third party. You can increase your liability coverage limits by adding a personal umbrella policy.    

What Is Insurance for Knob and Tube Wiring Canada?

Older and historic homes possess vintage architecture and aesthetics that make them attractive and give them a nostalgic feeling.

However, they contain some old and outdated components and systems that may need to be replaced. Some of these components include knob and tube wiring. This type of wiring consists of porcelain or ceramic knobs and tubes affixed to the frame of the house. They are known to pose fire and electrocution hazards around the home. It is for this reason that it is advisable to get a knob and tube wiring insurance to protect your home. 

Insurance companies that offer home insurance are usually not happy having this kind of risk covered by their policy. This is because of the hazard it poses to your home and there is always a high chance that damage or loss may result from it.

Therefore, the implication of this is that insurance companies will rate your home as high risk and may require you to convert to modern electrical wiring components. Getting an insurance company that will cover a home with knob and tube wiring could be a difficult task.

As a result, when you are able to get one, the premium is significantly higher than a regular home insurance premium and the coverage will also be reduced. This is something you should consider if you’re buying a home (or you own a home) with this type of knobing and wiring.

Written by Frederick Jace

A passionate Blogger and a Full time Tech writer. SEO and Content Writer Expert since 2015.

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