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We have a bunch of older homes here in LA and I have had many wonderful times doing rehab work on them. electrical work is always involve in remodeling, always. Once I touch it, I am on the hook. I bet you if you go up in the attic and touch, and I mean touch or squeeze lightly, the fabric or the protective layer will fall right off leaving the bare wire expose. We did a renovation in a grand old house in Pasadena, a couple of years back. When we tore into it, there were bare wires exposed all over the place in bit and pieces and they were hot. You have my vote on changing it. If its within your budget, try and run the wires through conduit instead of Romex. My house is built in 1950. A few years ago, all the electrical were upgraded or changed. No romex there.
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