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I posted on here a while back about running some new lights in my house that was built in 1947. I wasn't too c concerned about the age of the house because I was under the impression that the wiring had all been replaced when an addition was built in 1998. Fast forward a couple of months and here I am today with an electrician and the first thing he spotted in the attic was active knob and tube wiring under and around attic insulation along with some exposed wires from old fixtures that are no longer there. This seems like serious concern and potential fire hazard. My home inspector did not note or mention knob and tube wiring during the inspection, and noted "No significant deficiencies or anomalies observed at the time of inspection" for service wiring. He did note some issues with grounded outlets and junction boxes in the garage that I'm aware of and addressing.

The electrician here told me replacing all of the knob and tube with up to code wiring would generally start around $10K and go up from there, or I could pull out the insulation but that would lead to other problems and I still have the old wiring. His opinion is that it is ridiculous that the home inspector would not notice or mention the active knob and tube wiring. An additional $10K-$20K in repairs would likely have been a deal breaker for me on this house had I known before I purchased it (November 2016). I'm planning on getting a few quotes to have it fixed and will have the problem fixed if it is really necessary. Is there any liability on the inspection company for not bringing this up? It seems like that's what I paid them for...

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