We're considering making an offer on a beautiful old American Foursquare home built in 1920. We currently are selling our 1924 bungalow to relocate to a more rural area.

Where we live currently (Chicago suburbs) we were required to replace ALL knob & tube wiring before we could even get homeowner's insurance. This was a mess, but a "doable" mess considering it's just a single floor so it was under a week's work with a well-known electrician.

What we're wondering is, in this rural area (town of 7,800 people...I mention this because they're more lax on obtaining insurance), how important it would be safety-wise to completely re-wire the home we're interested in purchasing? There are currently no GCFI's anywhere, and no grounding wire. The panel has been replaced with 100 amp service to host the central a/c and new furnace. The exposed k&t wiring in the attic shows no fraying and the insulation is in remarkable shape. Should we feel it necessary to completely rewire the home despite having no problems obtaining homeowner's insurance? Or should we just install some GCFI outlets around sinks, etc.? Would it be prudent to install a GCFI to the home office where my husband works full-time (in hopes that his computer/external harddrive (i.e. livelihood) would not be fried?) I'm assuming a vast majority of the older homes in the area do not have updated wiring.

Thanks for any input.