Modern nonmetallic electrical cable is tough stuff, and it doesn’t require the open-air environment of older knob-and-tube wiring for heat dissipation. Even if you pack it up against insulation, it just laughs as long as cable-nibbling rodents don’t take up residence. Knob-and-tube wiring, on the other hand, can have a dysfunctional relationship with insulation due to heat buildup. It isn’t unusual to find knob-and-tube wiring buried under the blow-in type of insulation, so check your local code to see if this is allowed.
Older light fixtures also need clearance from insulation because they really build up heat, especially if they have more than one light bulb. Although newer zero-clearance fixtures are now sold, never assume they have been installed in an older house until you examine the fixture itself.
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