1. Knob-and-Tube Wiring
What it is:Knob-and-tube wiring was common in homes built from the early 1900s to the 1950s. It uses porcelain knobs to anchor wires and tubes to pass wires through framing.Why insurers are concerned:
- No grounding: These systems lack a grounding wire, which increases the risk of shocks and electrical fires.
- Aging insulation: The rubber or cloth insulation around the wires becomes brittle over time.
- Modern load problems: Knob-and-tube was not designed for today’s electrical demands (high-use appliances, electronics, etc.).
Most insurers in BC will not insure a home with active knob-and-tube wiring unless it has been inspected by a certified electrician and updated to modern standards. Some will only insure if replacement is scheduled within a certain timeframe (e.g., 60–90 days after purchase).
2. Aluminum Wiring (1960s–1970s)
What it is:Aluminum wiring replaced copper temporarily in the 1960s and 1970s when copper prices spiked.Why insurers are concerned:
- Connection failure: Aluminum expands and contracts more than copper, causing loose connections over time.
- Fire hazard: Loose connections can cause overheating and arcing.
- Corrosion: Aluminum oxidizes easily, leading to poor conductivity and increased heat.
Homes with aluminum wiring can often be insured, but only with proof of professional inspection and approved corrective measures, such as CO/ALR-rated outlets or pig-tailing (where copper is attached to aluminum ends). Without these safety upgrades, insurers may deny coverage.
3. Polybutylene (Poly-B) Plumbing (1978–1998)
What it is:Poly-B is a flexible grey plastic pipe widely used for water supply lines in homes during the 1980s and 1990s.Why insurers are concerned:
- Leak risk: Poly-B degrades when exposed to chlorine and heat, leading to microcracks and eventual leaks.
- Failure history: It was the subject of major class-action lawsuits in North America due to frequent failures.
- Hidden damage: Many systems fail behind walls, causing extensive water damage.
Some insurers in BC refuse to insure homes with Poly-B plumbing, while others add a surcharge or higher deductible for water damage.
Many require that the system be replaced with PEX or copper before offering full coverage.
4. Oil-Fired Heating Systems & Underground Oil Tanks
What it is:Many older Victoria homes used oil furnaces, with underground oil storage tanks still buried on the property — sometimes forgotten for decades.Why insurers are concerned:
- Environmental hazard: Old oil tanks can corrode and leak, contaminating soil and groundwater.
- High cleanup costs: Remediation can cost tens of thousands of dollars.
- Liability risk: Homeowners can be held responsible for environmental cleanup — even after selling the home.
Most insurers require a current oil tank certificate proving removal or decommissioning. If the tank remains, coverage for environmental damage is often excluded or the insurer will decline to issue a policy.
5. Galvanized Steel Plumbing
What it is:Galvanized pipes (steel coated with zinc) were commonly installed before the 1960s.Why insurers are concerned:
- Rust and corrosion: Over time, the zinc layer deteriorates, leading to interior rust buildup.
- Reduced water flow: Corrosion narrows the pipe’s diameter, restricting water pressure.
- Leak potential: Older galvanized pipes are prone to internal leaks and bursts.
Insurers often ask for confirmation that galvanized plumbing has been replaced with copper or PEX. Homes with remaining galvanized pipes may still get coverage, but water-damage protection might be limited.
6. Old Electrical Panels (e.g., Federal Pacific, Zinsco)
What it is:Outdated electrical panels, especially Federal Pacific Electric (FPE) and Zinsco brands, were widely used until the 1980s.Why insurers are concerned:
- Breaker failure: These panels often fail to trip when overloaded — a serious fire risk.
- Heat buildup: Loose connections and poor contact can lead to overheating.
- No CSA approval: Many are no longer certified for use in Canada.
Most insurance companies will not issue or renew policies for homes with FPE or Zinsco panels. A licensed electrician’s report confirming replacement with a modern panel (e.g., Square D, Siemens) is usually required.
7. Old Roofs & Building Envelope Issues
What it is:Many older homes have asphalt shingles beyond their lifespan or roofs with poor ventilation and water sealing.Why insurers are concerned:
- High claim probability: Roof leaks are one of the top causes of insurance claims.
- Deferred maintenance: If shingles are curling or missing, insurers may assume other systems are neglected.
- Cost to repair: A roof failure often leads to mold and structural water damage.
If a roof is more than 20–25 years old, many insurers require an inspection report or will offer limited water coverage. Some may require roof replacement before issuing a policy.
8. Wood-Burning Stoves & Fireplaces
What it is:Older homes often have wood stoves or fireplaces that no longer meet modern WETT (Wood Energy Technology Transfer) standards.Why insurers are concerned:
- Improper installation: Older chimneys may not meet clearance codes.
- Creosote buildup: Increases the risk of chimney fires.
- Lack of maintenance records: Makes it hard to assess safety.
Insurers typically require a WETT inspection certificate before approving coverage. Without one, they may exclude fire-related claims or deny coverage entirely.
What Homeowners and Buyers Can Do
If you’re buying or selling an older home, here are a few smart steps to make the process smoother:- Get a professional home inspection.
A qualified inspector can identify outdated systems and provide estimates for upgrades. - Ask for recent electrical and plumbing reports.
These can reassure both your insurer and your buyer. - Budget for upgrades.
Replacing Poly-B, knob-and-tube wiring, or an oil furnace can be expensive, but they significantly increase both resale value and insurability. - Shop around for insurance.
Some insurers specialize in older or heritage homes and may be more flexible. - Keep documentation.
Always keep receipts, inspection reports, and certificates — they can make or break your ability to get insurance.