Okay, let's break down the implications of this situation. This is a very common wiring setup for homes built in the 1960s, and you're right to assess it during your remodel. Here's a detailed look at the issues and your options

Understanding the Existing System
Metal Flex Cable (Likely AC - Armored Cable)

This is the type of cable you are likely describing. This type of wiring relies on the metal armor of the cable to act as the ground path back to the electrical panel.

Cloth-Covered Conductors

The cloth insulation is often degraded by now. This insulation can become brittle and crack, exposing the conductor. This is a safety hazard.

No Bonding Strip

The absence of a bonding strip inside the cable is a critical point. Modern AC cable includes a bonding strip that increases the ground path reliability. Without it, the grounding is entirely dependent on the integrity of the connections between the metal armor and the metal boxes.

Grounding via Armor

The armor acting as the ground is the weak point. Over time, connections can loosen, corrode, or be compromised, leading to a poor or non-existent ground. This is a significant electrical safety concern.

Metal Boxes

While metal boxes are good for providing a continuous ground path, they still rely on the integrity of the connections to the cable armor.

No dedicated grounding conductor

The original installation relied on the metal sheath of the cable as the grounding conductor.

Safety Concerns Fault Current Path

In the event of a short circuit, the fault current needs a reliable path back to the breaker to trip it quickly. With the armor acting as the ground, that path may be compromised. This increases the risk of electrical shock or fire.

Aging Insulation

Deteriorated cloth insulation is a fire hazard. If the insulation crumbles and exposes the hot wire, it can create a short circuit.

Unreliable Grounding

Loose connections, corrosion, or damage to the cable can interrupt the ground path, leaving outlets and appliances ungrounded.

Risk of Electrocution

Ungrounded appliances and electrical equipment pose a risk of electrocution if a fault occurs.

Options for Remediation

Because you're doing a whole-house remodel, you have a prime opportunity to address this outdated and potentially hazardous wiring. Here are the options, ranked from least to most comprehensive (and usually most expensive):1. Do Nothing (Not Recommended)

Ignoring the problem is the cheapest option, but it's also the riskiest. You're leaving a potentially dangerous electrical system in place. It's generally not a good idea, especially during a major remodel.2.

Replace Outlets with GFCI Outlets (Band-Aid Approach)



How it works

Ground Fault Circuit Interrupter (GFCI) outlets provide a degree of protection against electrical shock. They detect small imbalances in current and trip the circuit quickly.

Pros

Relatively inexpensive and can be done in stages. Improves safety in situations where grounding is unreliable.

Cons



Doesn't fix the underlying problem

You're still relying on potentially unreliable grounding.

Limited protection

GFCI's protect against ground faults (current leaking to ground). They don't protect against other types of electrical hazards like short circuits between hot and neutral.

Can be nuisance tripping

If there is existing leakage in the system, GFCI's may trip frequently.

Won't meet code for new circuits

Any new circuits you add will need to meet current code requirements, which means proper grounding.

Requires labeling

GFCI protected outlets that lack a grounding conductor must be labeled "GFCI Protected" and "No Equipment Ground."3.

Rewire with Modern Cable (Recommended)



How it works

Replace the old cloth-covered wire with modern NM-B (Romex) cable, which includes a separate insulated grounding conductor.

Pros



Addresses all the problems

Provides a safe, reliable grounding system.

Meets current code

Ensures your electrical system is up to modern safety standards.

Increases home value

Upgraded electrical systems are a selling point.

Allows for more modern circuits

You can add more outlets, circuits, and larger appliances without overloading the system.

The Safest and most reliable method of ensuring you have a grounded system. Cons



Most expensive

Requires the most labor and materials.

Disruptive

Involves opening walls and ceilings.

Key Considerations for Rewiring



Permits and Inspections

Always obtain the necessary permits and have the work inspected by a qualified electrical inspector. This ensures the work is done safely and to code.

Qualified Electrician

Hire a licensed and experienced electrician. Electrical work is dangerous and requires specialized knowledge.

Planning

Carefully plan the layout of your new circuits, outlets, and lighting. Consider your current and future electrical needs.

Considerations during Planning Kitchens and Bathrooms require GFCI protection Arc Fault protection on bedroom circuits* Adequate spacing for receptacles in walls and countertops.

Recommendation

Given that you're doing a whole-house remodel, rewiring with modern NM-B cable is the strongly recommended approach. It's the most comprehensive solution and provides the greatest level of safety and peace of mind. While it's the most expensive option, it's a worthwhile investment in your home's safety and value.If you're on a very tight budget, you could consider a combination of GFCI protection for existing circuits and rewiring only the most critical areas (e.g., kitchen, bathrooms) or any new circuits you add. However, this is a compromise and doesn't fully address the underlying problems with the old wiring.Before making any decisions, get quotes from several licensed electricians to assess the scope of the work and the associated costs. They can provide valuable insights into the condition of your existing wiring and recommend the best approach for your situation. They will perform a load calculation to see what is appropriate for your service, and what size panel is needed. Flag for review