As far as i'm aware is that BT will only cover external wear and tear damage... Things like asking them to update the wiring will charge you...
My advise would be to report as fault and get free of charge visit from open reach to check your equipment... the engineer would advise you if he can update your wiring and if any charge would be incured. Also including in the price that BT quote is a 'Call out fee' so if wiring was to be replaced on this free visit then it would/should not include the call out fee
I worked on Customer Service for a few years but have been away from that for about 4 years now.
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Tenacious_T
BT Total Broadband Option 3
BT Broadband Talk
BT FON
BT Vision
BT Home Hub v1.5
Downstream 8128 Kbps.......Line Attenuation 19 dB
Upstream 448 Kbps............Line Attenuation 8.5 dB
IP Profile 7150 Kbps...........IP throughput 6917 Kbps