The insurance company that we had for our 4000sq ft 1870 home demanded that all traces of K&T wiring be removed, not just disconnected. Most had been, as I am a retired electrician, but there was still some visible in crawl spaces that you could see but not reach.There were a few other issues about firewood storage and the measurements of the 125yr old restored stair rail.
We finally lost our insurance, the house went into the insurance computer as a problem and we were unable to get re-insurred until we sold it 3yrs later. As soon as we gave our address to a new agent and told him that we didn't presently have coverage he would check his computer. Same story with all of them. Once you have been dropped, as opposed to letting it lapse, you are up the creek, at least here in Ontario.