Can I get cottage insurance with knob-and-tube wiring in Ontario?

Knob-and-tube wiring is one of the most common insurance obstacles facing buyers of older Ontario cottages. Many charming cottage country properties built before 1950 still contain some or all of their original knob-and-tube electrical system, and finding insurance for these properties requires persistence, a specialist broker, and often a plan to upgrade the wiring.

Why Insurers Are Concerned About Knob-and-Tube Wiring

Knob-and-tube wiring was the standard electrical installation method in Ontario from the late 1800s through the 1940s. When originally installed, it was a safe and effective system for the modest electrical loads of the era. The problems with knob-and-tube wiring in modern use are not about the original design but about age, degradation, and misuse.

The rubber or cloth insulation surrounding the wires degrades over decades, eventually cracking and falling away to expose bare copper conductors. Exposed conductors in contact with combustible materials — wood framing, insulation blown in over the wiring, or stored items in attics — create a fire ignition source. The system has no ground wire, which means appliances and electronics connected to it lack the safety grounding that modern wiring provides.

Most critically, knob-and-tube wiring was designed for a fraction of the electrical load that modern cottage use demands. Adding circuits, splicing into existing wiring, or running high-draw appliances on a system designed for lights and a radio creates overheating risk.

Insurers track claims data, and properties with knob-and-tube wiring have a measurably higher fire loss frequency than properties with modern wiring. Combined with the remote location and limited fire response typical of cottage properties, the risk is amplified.

Your Insurance Options

The insurance market for knob-and-tube cottage properties in Ontario as of 2026 breaks into three tiers.

Standard cottage insurers — the carriers that offer the broadest coverage at the most competitive premiums — generally decline properties with active knob-and-tube wiring. If you apply to a standard carrier and disclose knob-and-tube wiring, the application will typically be declined.

Specialty or non-standard insurers will consider knob-and-tube properties subject to conditions. These conditions usually include a satisfactory inspection by a licensed electrician confirming the wiring is in serviceable condition, confirmation that the wiring has not been modified improperly, and in some cases a commitment to upgrade the wiring within a defined timeframe. Premiums from specialty carriers are typically 30 to 50 percent higher than standard carriers for comparable properties, and coverage may be more limited — for example, actual cash value rather than replacement cost.

Facility Association is the insurer of last resort in Ontario. If no voluntary market carrier will write the policy, coverage can be obtained through Facility Association, but premiums are substantially higher and coverage is basic. This is a last resort, not a desirable long-term solution.

The Case for Upgrading

Replacing knob-and-tube wiring with a modern electrical system is the most effective solution for both safety and insurability. A full rewire of a cottage typically costs $8,000 to $20,000 depending on the size, accessibility, and the extent of the existing system.

The return on investment from an insurance perspective is significant. Moving from a specialty carrier to a standard carrier can save $500 to $1,500 or more per year in premiums. Over five to ten years, the premium savings alone can offset a meaningful portion of the upgrade cost. The improvement in coverage quality — replacement cost instead of actual cash value, broader perils, lower deductibles — provides additional value.

If you are purchasing a cottage with knob-and-tube wiring, factoring the rewiring cost into your purchase budget is advisable. Some buyers negotiate the electrical upgrade into the purchase price or request a credit from the seller. Either way, having a plan and timeline for the upgrade will help your broker secure the best available coverage in the interim.

For cottages with knob-and-tube wiring in Muskoka, Haliburton, Kawartha Lakes, or anywhere in Ontario, call Luca at 705-996-1116 to discuss your options.