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I have read some additional articles and what I believe I understand is that a GFCI will protect you from electrocution but in the event of an electrical surge! It will not protect the electrical components? Am I understanding this correctly? If this is true, Is there any way to protect the...

So are you saying start every circuit with a GFCI?

Aside from rewiring the house with wire with a ground, what are the hazards of rewiring the receptacles with new ones with a ground? This will allow me to use appliances with ground connections.