I am an electrical contractor in upstate New York. I am always amazed how insurance companies are so quick to collect the premiums but ......
I agree with the county electrician in advising you to replace all the wiring in the home. I am not certain as to how you would definitively test and be able to certify ,as such, each and every conductor. Then there are the liability issues that might have scared off many of the contractors you contacted.
My advice to you is to replace everything; wiring, devices, fixtures, service and whatever appliances may be suspect. Have a certified agency inspect the work as per your local codes or laws. It may cost a little more now but you will have peace of mind.
Good Luck Jim
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