Condition of knob and tube wiring is key to getting older home insured

Q: I have been getting quite a hassle from various insurance companies on a home I am trying to buy. My agent tells me several companies will not write new homeowner policies on homes that have knob and tube wiring. This would include most houses, would it not?

A: State Farm sells more homeowner insurance in our area than any other insurance company. The moratorium they had on all new policies has been lifted, and spokeswoman Melissa Harris says they do not have any hard and fast rules about knob and tube wiring. While State Farm has grown stricter about accepting new business, each new piece of business is dealt with on a case-by-case basis, according to Harris. How much knob and tube wiring is in use, what condition it is in, and so forth are the determining factors, she says.

Our ever-more litigious society, poor returns in the investment market and recent loss patterns are among the factors affecting the insurance industry, and as a result insurers have become more choosy, sometimes at higher rates.

I spoke to Matt Davis, an attorney with the Demco Law Firm, which represents many Windermere Real Estate offices. "We have had a number of transactions where people have discovered too late that they could not get insurance, or could only get it at exorbitant rates," said Davis.

His firm is drafting forms that will be available in the next few weeks to Windermere agents, and by extension, any agent in a multiple-listing service. These forms educate buyers about some of the changes in the homeowner insurance industry, and specifically about Comprehensive Loss Underwriting Exchange (CLUE), a database that tracks homeowner claims on specific buildings.

The forms will also make potential buyers aware of the need to obtain conforming insurance well before closing, and may in fact give a buyer a 30-day contingency period to verify it is available, or provide a process to negotiate a remedy. (Down the road we may also see disclosure documents that include information on past insurance claims on properties.)

As to the proliferation of knob and tube wiring: Every home built before the end of WWII has some knob and tube wiring in it, unless it has been stripped, gutted and completely re-wired. Maybe 5 percent to 10 percent of the houses built in this period have no knob and tube wiring. A typical electrical upgrade involves panel replacement, new service wire and several new circuits. Knob and tube is usually always left inside the walls, particularly on lighting circuits. Not that we have seen a rash of problems with knob and tube wiring lately.

Q: What is a good rule of thumb for replacement of a buried sewer pipe? This is an area that I think is rife with potential for abuse by contractors with varying opinions. Is a crack, a misalignment, an offset, or a bad joint reason enough to replace the sewer?

A: Complete replacement of a buried sewer line isn't always necessary since a fracture or other problem typically is limited only to one small area. Cutting out the affected section and repairing only the damage will always be cheaper than complete replacement, despite the contractor possibly wanting the work. Obviously, if it is crushed or cracked in several places, consider complete replacement. Trenchless liners are also available to help with leakage or root intrusion. Every situation varies considerably. I would get multiple opinions and bids.

Q: My pipes bang when I turn the water off. It is both steel and copper plumbing. What can be done?

A: Pipes that are loose can make a banging noise. First, see if you can tighten them to the building where they may be banging. While this may help, it probably won't cure it completely. Moving the main water shutoff or pressure reducing valves slightly left or right can also have an effect. Check to see that the water pressure is not greater than 80 PSI using a gauge (widely available and inexpensive). If it is higher that 80 PSI, adjust the pressure downward at the reducing valve. Lacking a pressure-reducing valve, you may want to have one installed.

Another possible cause of banging is a defective air chamber inside the wall next to most plumbing fixtures.

They may have filled with water over time, displacing the air. These air pockets are located at small dead-ended plumbing lines and absorb some of the shock from the opening and closing of valves.

If you shut off the main water valve to the house and drain the system completely (from the lowest fixture) you may be able to pull air back into the chambers.

If none of these remedies work, a "water hammer arrestor" device can be installed on the lines that have the banging problem. This device absorbs some of the energy from the rapid closing of a valve, eliminating the bang.

Darrell Hay answers readers' questions. Call 206-464-8514 to record your question, or e-mail dhay@seattletimes.com. Sorry, no personal replies. More columns at www.seattletimes.com/columnists.