Is $8,600 to replace cloth wiring in original portion of home a fair price?

We just bought this house built in 1935, and it has cloth insulated wiring throughout. From my understanding, this should be replaced. I’m not sure if it’s the original or not. The electrician didn’t seem to think it was super urgent - as in the cloth wasn’t heavily deteriorating. But still, seems like we should replace it for safety reasons. I am terrified of a house fire. This is a lot to spend at once but that may be completely reasonable. I just truly don’t know, and was wondering if anyone has any insight? Our house is 2,900 square feet but the newer addition part doesn’t need replacement. So it’s significantly less than that square footage, probably closer to 2,000 square feet. Access is not super easy, so we will definitely leave that to the professionals.