Gary, thanks for explaining this is such a clear and simple way. I only have the latest electricity rates (~.055/kWh + .07066/kWh fuel adjustment charge = .12566/kWh) because my gas has been turned off at the house and I'm currently living in another parish (the La. version of county) with a different power company and different rates. But I'm working on getting that info. Tigerdunes, I'll drink the water. I never argued against any of the advice I've gotten here, just passing along what I'm being told. I trust you guys. You're the experts. It's just that it's me, a layperson with a limited understanding of all this, dealing with HVAC contractors who have their own agendas. I wish I had all the info you guys have in your brains when these interactions take place. It would be easy and I would be a much more formidable opponent in the battle of wills. But as it us, a lot of this stuff is like Greek to me; I'm slowly learning the language and the nuances of the semantics. And truly, I am awestruck by the generosity of those of you who take the time to share your expertise with people like me. I can't overstate my gratitude. You're like having GPS in the big, dark forest, helping me figure out where I am and where I need to go. BTW, I spoke to some friends who are in a similar situation and they bought the manual J software and ran it to compare to what their HVAC contractor showed them. I think there was a difference of about a ton because of details the contractor made assumptions about. I looked over the software demo and realize my contractor's manual J probably made similar assumptions. My friends' house is about 2400 sq ft and 3 stories (slightly lower ceilings) with batt insulation and they were at 4 tons compared to my 4.5 tons indicated in the contractor's J-load. So, I'm going to get the software and run the calcs myself. I know I risk the ire of the HVAC contractor, (and maybe that's not a bad thing), but I just want this done right. Is that so wrong? Sigh.

"Maybe you should ask yourself if you would be willing to get up on the roof and do the work for what you are wanting to pay someone else to do it." This is a specious argument and usually one of last resort, when nothing but bluster is left. Seems you miss Adam Smith's point entirely. I write a specific type of software for a living. Would you like to try your hand at it when you need a custom piece written? Didn't think so. That doesn't mean you can't find someone else to do it at a lower price if I insist on charging you a silly figure. Yes I am unskilled at dealing with contractors. And thankful for it, for to acquire that skill would mean lots of practice, which I don't have the stomach for. And yes, I DID learn to do a lot of things for myself. Not to save money (it cost me more money in fact, as I make more than most contractors do per hour) but to save myself the aggravation. This is all I will write on the subject of contractors here. Would still love to get responses on specific questions as asked... thanks for understanding.

Found another Ins. Co. and signed a new policy (same coverage and price), they have the inspection report and the cloth wiring wasn't an issue. Our agent mentioned that they would be doing their own inspection. Talked to our original agent, she wanted to know who the carrier was. I told her, she said she had talked to them as well and they wouldn't cover my house due to the wiring. She has a feeling the new policy will be cancelled as well. Not sure what to do, we have a mortgage and the bank requires us to have insurance. Replacing the wiring would be a major headache, financially and physically, as the walls are plaster lathe and there is no crawl space to access any wires.

@GN Builders, in my area of South Florida, if your roof is a shingle roof and over 20 years old, it is nearly impossible for the buyer to get homeowners insurance without a roof replacement. I say nearly because you can get it, but it is special lines type insurance and more than double the cost of our already very high homeowners insurance premiums. For an average 2000 sf home normal insurance is $2400/yr (could be much more) and special lines is well over $5k per year (could be much more). I used an average example. Insurance varies tremendously here. The difference in this premium knocks out a bunch of buyers if they are financing the home (hurts debt ratios). This makes the property very difficult to sell unless you sell to a cash buyer for an extreme discount. The seller will do better, normally, by replacing the 20 year old roof before putting it on the market and having it languish or risk a sale that costs the seller more than the roof cost in a reduced price. It truly varies by area. A little further up the coast here and the insurance is significantly less. Edit: The roof condition/age/type is 40% of the windstorm premium so that is one of the reasons why the insurance companies are so adamant about not insuring a shingle roof over 20 years old. Believe me, it makes it extremely difficult to sell a home with an old roof here even if it isn't leaking.