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Knob and tube wiring is an older type of electrical wiring that's no longer used and generally not considered safe. However, some homes still have it, or may have a knob and tube wiring system that was incorrectly modified or rigged to work with a modern electrical system. Knob and tube wiring may contain asbestos insulation, but the only way to know is to have the material professionally tested.

Whether or not to buy a home containing asbestos is ultimately a decision for the homebuyer, and there are several things to consider. When in good condition and contained, asbestos is unlikely to present a health risk—it’s when those tiny fibers are loose and airborne that they become a problem. Consider any renovations you plan on doing to the home that could disturb existing asbestos and the cost of removal. If an inspection finds asbestos in a home on the market, you could negotiate with the seller for a lower price, though this isn’t a sure thing.

Some pros may recommend covering a popcorn ceiling that tests positive for asbestos with beadboard ceiling planks or drywall. The cost to install a beadboard ceiling averages more than $5,000, but you likely will pay more than the average for the installer to deal with the asbestos safely. Installing a beadboard ceiling or new drywall will disturb the asbestos and release some microscopic fibers, so the installer will need to take precautions. 

If you have an older electrical system with fraying wires and other signs of damage, removal  may be the best course of action. When asbestos begins to break down, it's more likely to become airborne, increasing the risk of health issues when it's inhaled.

However, if the system is in good condition and doesn't have visible signs of wear or damage, leaving it alone may be the safest course of action. An asbestos abatement and removal professional can help you determine the best way to proceed.