Many of the older homes in toronto have knob and tube so it would seand not all new buyers can afford to rewire the whole house. There are insurance compaines out there willing to insure as long as you have a signed letter from an electrical safety inspector saying that it is safe. Try State Farm. and be prepared to possibly pay a little more.
Don`t quote me on this but from what I can remember, the way that my electrician explained it to me, it`s okay if the light fixture are on knob and tube but not the receptacles because they had to be grounded. Talk to an electrical inspector about it. I usually end up rewiring the whole house because I buy fixer uppers so the knob and tube for me is just a temporary issue during the renovation phase.
I wouldn`t walk away from a good property because it has SOME knob and tube, but then in Toronto that`s not unusual, and if it`s just a small amount you may be able to replace it in the future if you have some cash down the road. If the whole house is k&t, then I would rewire everything because it means that the kitchens don`t have enough power to run modern appliances and the breakers will be constantly tripping.
I bought one house where the 2nd floor kitchen power would go every time someone used the toaster if the fridge was running because it was on the same circuit as the WHOLE 2nd floor kitchen, 2nd floor bathroom and most of the light fixures for the 2nd and main floor. As soon as I could afford it I put in a pony panel and rewired the 2nd fl kitchen and bath. Can`t remember how much that cost because it was a part of a larger renovation.
I wouldn`t tell you not to buy the house if it`s a good property, but get a quote to replace the electrical, now or in the future before you plan to sell. Talk to a few insurance companies and see what their policy is, call the ESA, and.......
look at the power supply to your kitchens to see if they need upgrading anyway. If the place still has knob and tube then chances are the kitchens will not have enough dedicted power supply to run modern appliances and you will be getting phone calls everytime your tenant tries to make toast. This can be especially problematic if there is only one panel and it`s inside someone else`s apt. I learned this lesson the hard way. Now when there is only one panel for the whole house I make sure that there is a least a pony panel that services the kitchen in their apt or somewhere that they have access to . That way if they do trip something they can reset the breaker themselves instead of waiting hours in the dark for someone to show up so they can make dinner.
Hope this helps,
T.
