Should you buy a house with cloth wiring?

Should you buy a house with cloth wiring?

Only after a licensed electrician has looked inside the boxes. Cloth wiring is judged by the condition of its insulation, and your inspector saw only the wire that was exposed. Before your inspection deadline, get the electrician's written answer on whether the insulation is intact. If it is cracked or crumbling, get a bid for the rewire and ask the seller to cover it.

Key takeaways

• Homewyse's $10,001 to $12,128 for a 3-bedroom, 2-bath rewire with permit is a starting price; one local electrician's 3-bedroom range runs higher.
• On a Federal Housing Administration (FHA) loan, the appraiser looks for frayed or exposed wires, not for cloth itself.
• Florida's Citizens Property Insurance asks about cloth wiring by name, so get a homeowners quote on this house before your deadline.

Is cloth wiring dangerous?

It can be. The Consumer Product Safety Commission (CPSC) warns that "wiring system components can wear out over time, presenting a fire hazard." It also notes that "when electrical components age or are overloaded, the system can overheat and wear out insulation."

Load is a separate problem. CPSC says the wiring in many older homes "can have difficulty handling the increasing demands being placed on them by modern appliances." Treat the finding as an electrical hazard until a licensed electrician tells you otherwise.

Does cloth wiring have to be replaced?

Its condition decides. The International Association of Certified Home Inspectors (InterNACHI) trains inspectors to ask whether the jacket on cloth-covered cable is "intact or does it appear to be crumbling or cracking." Of the cable feeding the house, its course says: "Even older cloth wrapped cables should be intact. If not, it may need replacement."

A licensed electrician can open outlet, switch and junction boxes and answer three questions:

• Is the insulation intact, or cracked and crumbling?
• Does the wire gauge match its breaker? InterNACHI reminds inspectors that "#14 copper wire is only rated for 15-amperes."
• Is there a ground wire at all?

Get a bid for whatever needs replacing along with the answers. Book the visit today; how to get repair estimates during the inspection period covers getting one fast.

How much does it cost to replace cloth wiring?

Home size and walls drive the price. Bob Vila notes that lath-and-plaster walls in older homes make it hard to fish new wire, which raises the cost.

Bob Vila says a large older home that is hard to wire can run as high as $30,000.

Here is a worked example for a 3-bedroom, 2-bath house. Homewyse's figure leaves out permits, and Bob Vila says a permit is almost always required, starting around $250 and running $500 or more. That puts the starting price at $10,001 to $12,128 ($9,751 plus $250, and $11,628 plus $500), and higher if your permit costs more. Homewyse assumes favorable site conditions, which an older house with plaster walls may not have. If the electrician has to open plaster walls, Bob Vila says a separate contractor opens and repairs them. That contractor's bid goes on top.

Does FHA allow cloth wiring?

The Department of Housing and Urban Development (HUD) handbook for FHA loans does not name cloth wiring. It tells the appraiser to make sure there is "no visible frayed wiring or exposed wires in the dwelling, including garage and basement areas." The appraiser must also notify the lender if "the electrical system is not adequate to support the typical functions performed in the dwelling without disruption."

So frayed or exposed wires the appraiser can see are the risk, not the cloth. If you are on an FHA loan, ask your loan officer whether a flagged electrical item must be fixed before closing.

What should you ask the seller for?

Ask for the number on the electrician's written bid, not a cost-guide range. Name the scope, the trade and the total, and attach the bid. What to ask for after a home inspection shows how this line sits next to the rest of your list. The buyer repair request letter template has the wording.

Choose between a repair and a credit before you send it:

• Ask for the repair if your loan officer or insurance agent says the work must be done before closing.
• Ask for a credit if neither needs it done first and you would rather hire your own electrician after you move in.

If the seller does the rewire, ask for the permit, any inspection sign-off and the electrician's invoice before closing.

What if the seller says no?

Then you decide whether to pay for the rewire yourself or leave. Your contract sets the exact dates and terms, so confirm with your agent. When to walk away after a home inspection walks through that choice.

Is cloth wiring a code violation?

The electrical code your city or county has adopted governs. Ask the electrician who inspects it, or call the local building department for your address. Bob Vila notes the local building authority may inspect the electrician's work "to ensure it's up to code."

Will insurance cover cloth wiring?

Ask your insurance agent before your deadline. Florida's Citizens Property Insurance has inspectors check a box for "cloth wiring" on its 4-point inspection form, which it uses "to determine insurability." Ask whether the carrier will write the policy, and whether an electrician's letter is enough or it wants a rewire first.

How do I know what the rest of my report is worth?

The electrician's bid covers the wiring, but your report has other lines. Kept prices every line of an inspection report for $79, usually under 4 hours, and marks the ones that need a professional's quote.

If cloth wiring is one line of many, upload your inspection report to Kept and spend your remaining days on the electrician's visit.

Sources

• Consumer Product Safety Commission, program to prevent home electrical wiring system fires
• InterNACHI, residential electrical inspection course, module 4
• HUD Handbook 4000.1, Update 18
• Citizens Property Insurance, 4-point inspection form
• Bob Vila, cost to rewire a house
• Homewyse, cost to rewire a home
• Prairie Electric, cost of rewiring a house