Does State Farm Cover Knob and Tube Wiring? Policy and Alternatives

State Farm does not cover homes with knob and tube wiring. The company’s underwriting guidelines, filed with state regulators, list active knob and tube systems as “unacceptable,” which means an application for homeowners insurance on a property with this wiring will generally be denied.¹ If you’re buying or already own a home with this wiring, your realistic paths forward are to replace the system, find an insurer willing to take the risk, or fall back on a state residual market plan.

What State Farm’s Guidelines Actually Say

The company’s position has two layers. In public comments, spokesperson Phil Supple has said State Farm requires a certificate of inspection from a qualified electrician before it will consider insuring an older home, and even a clean inspection may not be enough. The concerns State Farm cites are the likelihood that an entire electrical system of that age has deteriorated, and the absence of a grounding wire that modern systems use to reduce fire hazards.²

The written underwriting guidelines are more absolute. Knob and tube wiring is listed as unacceptable outright, alongside unremediated single-strand aluminum wiring, and any dwelling with utility systems that don’t comply with code or aren’t properly maintained falls into the same category.¹

State Farm’s guidelines do include a procedural step for applicants. The company will not decline based on a property’s physical condition without first conducting a timely inspection and explaining the reasons for the denial, and applicants are supposed to be told whether improvements could prevent it.¹ In practice, replacing the wiring is the only improvement that resolves the issue.

Why the Industry Treats This Wiring as a Hazard

State Farm isn’t an outlier. A 2022 survey of major insurers found most will not insure homes with active knob and tube systems, and a 2019 survey recorded State Farm’s answer as a flat “no.”³⁴

The underlying fire risk is well documented. An NFPA and U.S. Fire Administration report estimates 28,300 residential electrical fires each year in the United States, causing 360 deaths, 1,000 injuries, and roughly $1 billion in direct property losses, with the insulation around electrical wires being the leading item first ignited.⁵ Knob and tube is especially vulnerable because it was designed to shed heat into open air; once building insulation is packed around the wires, heat builds up. The 2008 National Electrical Code specifically prohibits knob and tube in wall, ceiling, or attic spaces filled with loose, rolled, or foamed-in insulation. These systems also lack a grounding conductor, were often modified by amateurs to handle modern electrical loads, and have insulation that cracks over decades.⁶

Replacing the Wiring

Full replacement is the reliable path back into the standard insurance market. Insurers and mortgage lenders typically require complete conversion to modern wiring, and partial rewiring rarely satisfies them. Protective devices like GFCI or AFCI breakers are generally treated as risk mitigation, not a permanent fix. When an insurer does allow time for remediation, the deadline is commonly 30 to 60 days after policy inception.⁷

Expect to pay for it. As of early 2026, the typical cost of replacing knob and tube wiring runs about $12,000 to $35,000, or roughly $8 to $17 per square foot, depending on home size, accessibility, and local labor rates. A 2,000-square-foot home can run $16,000 to $34,000, and larger homes may exceed $40,000.⁸ The project usually includes upgrading the electrical panel, replacing outlets and switches throughout the house, pulling permits, and opening walls and ceilings to route new wiring. Wall and ceiling repair adds to the total.⁹ If you’re buying the home, the replacement estimate is useful in price negotiation.⁶

Finding Another Insurer

If you need coverage before you can replace the wiring, some carriers will write a policy under conditions. In the 2022 survey, Allstate indicated it would likely insure such a home with a 5% surcharge, and USAA said it would likely cover one after conducting its own property inspection. Carrier appetite shifts year to year, so an insurer open to knob and tube one year may not be the next.³

When standard carriers all decline, the next stop is excess and surplus lines underwriters, which specialize in risks the conventional market won’t touch. Premiums typically run 50% to 100% higher than what a home with modern wiring would pay.⁷ Coverage may also narrow. Rather than a standard HO-3 policy, you may be offered an HO-8, a modified form for older homes that covers only named perils (fire, windstorm, theft, and a specific list of others) and pays claims at actual cash value rather than replacement cost, meaning depreciation comes out of the payout.¹⁰

State FAIR Plans as a Last Resort

Every state operates some form of residual market insurance program, often called a FAIR plan, for property owners who cannot find coverage on the open market. In Massachusetts, the Massachusetts Property Insurance Underwriting Association (MPIUA) provides basic property insurance for eligible homes; you apply through a licensed insurance agent and the property is inspected.¹¹ MPIUA rates typically run 30% to 60% higher than standard market rates. California’s equivalent is the California FAIR Plan, which lenders may accept as sufficient coverage to approve a mortgage.¹² In Minnesota, the FAIR Plan may provide coverage if the wiring is in active repair with a filed electrical permit.¹³ These plans are built as temporary coverage; homeowners are generally expected to return to the standard market after replacing the wiring.

Don’t Conceal the Wiring on Your Application

Leaving knob and tube off the application is a serious mistake. Concealing older wiring is treated as misrepresentation and can invalidate a policy entirely if a claim is filed, even when the application didn’t ask about the electrical system directly.⁷

The mortgage consequences stack on top of the insurance ones. If an insurer cancels a policy because a homeowner misses a wiring replacement deadline, the cancellation triggers notice to the mortgage lender, which can respond by placing high-cost forced coverage on the property or, in extreme cases, calling the loan.⁷ Insurance broker Jerry Becerra has advised homeowners to replace knob and tube wiring proactively rather than waiting for a cancellation notice, noting that once this wiring is disclosed on an application, coverage is likely to be declined.¹²

1
Maine.gov. State Farm Underwriting Guidelines
2
Ars Technica. Buying a House State Farm Won’t Insure Due to Wiring
3
Structure Tech. Knob and Tube Wiring
4
Homes MSP. Knob and Tube Wiring Concerns Safety and Insurance
5
USFA/FEMA. Residential Building Electrical Fires
6
InterNACHI. Knob and Tube Wiring
7
Insure.com. Insuring Old Homes
8
HomeGuide. Cost to Replace Knob and Tube Wiring
9
Angi. Knob and Tube Replacement Cost
10
Progressive. Homeowners Insurance for Older Homes
11
Massachusetts.gov. Massachusetts Property Insurance Underwriting Association
12
ABC7 News. Bay Area Homeowners Could Get Insurance Coverage Denied for Knob and Tube Electrical System
13
Minnesota Office of the Revisor of Statutes. Minnesota Statutes Section 513.55