You guys have posted some valid arguments regarding K&T.
In my neck of the woods, when a house with K&T gets sold, the insurance companies want the new homeowner to have an EC come in and sign their life away stating that the K&T is "safe", or have it replaced.
Obviously, the insurance companies feel that there is a risk factor when knob and tube is involved. I'm sure those risk factors are based on other claims where the wiring failed, otherwise it wouldn't be an issue.
