Knob-and-tube (K&T) is the wiring style of pre-1950 homes. Cloth insulation, ceramic knobs, no ground conductor. The wire itself can handle modern loads at low duty cycle but cannot be wrapped in insulation (overheats) and cannot be safely modified. Aluminum branch wiring is the 1965-1972 era replacement that turned out to have a failure mode at connection points — outlets and switches loosen over heat cycles, leading to fires.
Both are remediable. K&T partial remediation ($5,500-$9,500) replaces active runs and documents dormant ones. Aluminum CO/ALR remediation ($1,800-$4,200) replaces every outlet and switch with aluminum-rated devices. Both satisfy most insurance carriers without a full $8K-$18K re-pull.
Full re-pull to copper is needed when (a) the carrier specifically demands it, (b) the existing wiring is damaged or rodent-chewed, or (c) you're remodeling and the walls are open anyway. Same scope as a whole-home rewire.