I do not believe that that type of insulation is rated for water as thhn/thwn is.
I have worked on many of the old houses here and deal with the cloth wire quite a lot. The insulation become very brittle from age and the heat of the lighting fixtures installed on the wire.
I have in the past used heat shrink tubing when repair cracked insulation in boxes.
I had a house a rewired several years ago because a water pipe froze up and burst and flooded the basement and the kitchen. Water break was not discovered for 3 days due to house being vacant. The electrical inspector made me rewire every thing that got wet. This was the old metal type of BX cable.
Funny you mention that. I am writing a letter for a disaster restoration company, letting them know that in my "expert" opinion, the wiring needs to be replaced.
Story: Dec 24th, we get a phone call from our disaster restoration company. A boiler had a pipe burst, and water from the boiler was leaking into the main electrical panel.
Except this panel is from the 40s or 50s, and has completely exposed buss, and huge 400A fuses. It also has cloth covered wiring.
What I am concerned about is the cloth wiring that came in contact with the water, and how it will need to be replaced.
However, I KNOW that as soon as I touch it, everything will need to be brought up to code.
There is some flaring of the cloth, but not much.
Am I correct in saying that the covering is cloth, and that it has already deteriorated, and will continue to do so, which presents a potential fire hazard?