# Which Insurance Companies Refuse Knob & Tube Coverage in Toronto (2026)

If you bought a Toronto home built before 1945 in the last decade, there is a strong chance you received a renewal letter at some point asking about knob and tube wiring. By 2026, that conversation has moved from a polite question to a hard underwriting line. Most major Canadian home insurers now refuse to bind or renew coverage on any property with energized K&T circuits. The list of insurers still willing to cover K&T is short and shrinking, and even those who do are charging surcharges that often exceed the cost of rewiring within a few years.

This post lists which insurers currently refuse K&T outright, which still cover with surcharge, and what your options are if you have just received a non-renewal letter. For the full rewiring guide, see [Knob & Tube Rewiring Toronto: Complete 2026 Guide](/blog/knob-tube-rewiring-toronto-2026-complete-guide).

Insurers That Refuse K&T Outright (2026)

The following major Canadian home insurers have refused new bindings and non-renewed existing K&T policies during the 2010–2025 period and continue to do so in 2026:

Aviva Canada — non-renewing K&T policies since approximately 2014. Will not bind new coverage on K&T homes. Reinstatement requires ESA Certificate of Inspection confirming complete removal.
Intact Insurance (including BrokerLink) — refusing K&T new business since approximately 2012. Existing policyholders given 30–90 day rewire deadlines on renewal.
TD Insurance — refusing new K&T bindings. Renewal practice varies by province; Ontario is a hard refusal.
Wawanesa Mutual — refusing new K&T since approximately 2015. Existing policyholders are non-renewed with notice.
Belair Direct (Intact subsidiary) — same refusal policy as Intact.
The Co-operators — refusing new K&T in most regions since 2018; underwriter discretion in mutual-friendly markets.
Economical / Definity — refusing new K&T bindings.
Travelers Canada — refusing new K&T.
RSA Canada (now Intact) — refusing.

The practical effect: if your renewal is coming up with any of these, you need to be working on the rewire before the renewal date, not after.

Insurers That Still Cover K&T (With Conditions)

A small group of insurers will still bind or renew K&T coverage, usually with a surcharge and an inspection condition:

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Square One Insurance — covers with surcharge ($800–$2,000/year extra in 2026). Requires inspection report or ESA documentation showing the K&T is in non-deteriorated condition. Often used as a bridge while rewiring is in progress.
Allstate Canada — covers in some regions with underwriter discretion. Surcharge varies. Often refuses if more than 20–30% of circuits are K&T.
Echelon Insurance — non-standard market, will cover at materially higher premiums.
Pafco / CAA Insurance — limited K&T capacity, typically as one-year bridges.
Some mutuals (Heartland, Portage, Gore Mutual) — case-by-case in Ontario, more accommodating in rural markets than urban Toronto.

The pricing math matters: a $1,500/year K&T surcharge over five years is $7,500, which is most of the way to a small-home rewire cost. The surcharge is rarely a long-term solution.

What a Non-Renewal Letter Actually Says

The standard non-renewal letter cites "material change in risk" or "underwriting guideline change" and provides a 30-, 60-, or 90-day deadline. The letter typically requires either:

ESA Certificate of Inspection showing complete K&T removal, or
Proof of binding new coverage with another insurer by the deadline.

If neither is provided, the policy lapses and the homeowner is uninsured. Mortgage lenders are notified of lapses (force-placed insurance is then triggered, often at 2x to 3x the original premium for inferior coverage). The pressure to act is real.

What to Do If You Just Got a Non-Renewal Letter

1. Call your broker first. A broker (not a direct-to-consumer captive agent) has access to multiple markets including non-standard. They can place you with Square One or a non-standard market as a bridge.
2. Get an electrical assessment within 7 days. A licensed electrical contractor (ECRA/ESA-licensed) walks the home, identifies all K&T circuits, and provides a written quote. RenoHouse coordinates this through our LEC partner.
3. Decide: rewire on your timeline or insurer's timeline. A 60-day rewire deadline is achievable for small homes; a 90-day window covers most Toronto homes. Larger pre-1930 detached homes may need 4–8 weeks of work plus the broker bridge.
4. Schedule the ESA permit pull and inspection. Permit application takes 1–3 days; rough-in inspection is mid-project; final inspection produces the Certificate of Inspection.
5. Send Certificate of Inspection to insurer. Coverage reinstatement typically takes 5–10 business days after submission.

For the project timeline detail, see [Knob & Tube Rewiring Timeline Toronto](/blog/knob-tube-rewiring-timeline-toronto). For costs, see [Knob & Tube Cost Rewiring Toronto](/blog/knob-tube-cost-rewiring-toronto).

Why the Insurance Industry Hardened Its Position

Three drivers behind the 2010–2025 K&T refusal trend:

Reinsurance. Reinsurers (Munich Re, Swiss Re, Lloyd's syndicates) added K&T surcharges and exclusions on Canadian property treaties. Primary insurers passed the cost through as refusals.
Insulation rebates. Provincial and federal energy rebate programs pushed homeowners to add attic and wall insulation. Adding insulation around K&T eliminated the open-air heat dissipation the wiring depended on, which raised fire risk and showed up in claims data.
Aging infrastructure. K&T installed in 1920 is now over 100 years old. Rubber insulation degrades, splices loosen, and the cumulative claims experience worsened year over year.

The Brokered Bridge Strategy

A common 2026 pattern: homeowner has a 60-day non-renewal deadline, full rewire takes 6 weeks. Strategy:

Day 1–7: Bind one-year policy with Square One or non-standard market (premium $2,000–$3,500 above what they were paying).
Day 7–10: Sign electrical contract, LEC pulls ESA permit.
Day 10–45: Rewire and inspections.
Day 45–50: Certificate of Inspection issued.
Day 50–60: Submit to mainstream insurer (Aviva, Intact, TD, Wawanesa) for new policy. Cancel non-standard mid-term.

The bridge premium ($2,000–$3,500) plus the rewire cost is typically less than the next insurer's compounded surcharges.

How RenoHouse Helps

RenoHouse coordinates the full rewire through our ECRA/ESA-licensed electrical contractor partner. The Master Electrician on staff with the LEC pulls the ESA permit, performs the work to OESC standards, and the Certificate of Inspection is issued in their name. RenoHouse handles drywall opening and patching, asbestos/vermiculite coordination through Type 1/2 abatement specialists, and the homeowner-facing project management. We deliver the Certificate of Inspection to your broker as part of project closeout. See our [Knob & Tube Rewiring Service Page](/services/electrical/knob-tube-rewiring) and the related [Electrical Hot Spot Inspection](/services/inspections-diagnostics/electrical-hot-spot-inspection) service.