Older homes have a certain charm you just can’t replicate — the crown moldings, original hardwood floors, and timeless architecture. But when it comes to home insurance, that vintage character can come with some complications.
If you own or are thinking about buying an older house, it’s important to understand how insurance works for homes that have been standing for 40, 50, or even 100 years. The good news? With the right information and a little planning, you can find a policy that protects your historic haven without breaking the bank.
Why Older Homes May Be More Expensive to Insure
Insuring an older home can be more complex — and potentially more costly — than insuring a newer build. Here’s why:
1. Outdated Systems
Electrical wiring, plumbing, and HVAC systems that haven’t been updated may pose greater risks, such as fire or water damage. Insurers may require upgrades or charge higher premiums to cover these risks.
2. Cost of Repairs
Repairing or replacing older features — like plaster walls or hand-carved woodwork — can be far more expensive than modern materials. Some homes may even need custom parts or skilled restoration experts.
3. Building Codes
If your older home isn’t up to current code and it’s damaged, you may need to rebuild according to modern standards — which can add significantly to the cost.
4. Historic Designation
If your home is registered as a historic property, there may be restrictions on how repairs or renovations can be made, which can further increase costs and complexity.
What to Look for in a Policy
Not all homeowners insurance policies are created equal — especially when it comes to older houses. Here are some things to consider:
✔ Replacement Cost vs. Actual Cash Value
Replacement cost coverage pays to rebuild your home with materials of like kind and quality — ideal for older homes with unique features. Actual cash value, on the other hand, factors in depreciation, which can leave you underinsured.
✔ Ordinance or Law Coverage
This pays for the additional cost to bring your home up to current building codes after a covered loss — essential for older homes.
✔ Extended Dwelling Coverage
This provides extra coverage beyond your policy’s stated limit in case rebuilding costs more than expected.
✔ Specialized Policies for Historic Homes
Some insurers offer policies specifically for historic or high-value homes, which may include coverage for rare materials and expert restoration.
Tips to Save on Premiums
While insuring an older home might cost more, there are ways to manage the expense:
- Update critical systems like electrical, plumbing, and the roof.
- Bundle policies (like auto and home) to get multi-policy discounts.
- Shop around and compare rates from multiple insurers.
- Ask about home improvements that can reduce your premium.
Final Thoughts
Owning an older home is a rewarding experience — but it comes with responsibilities. Choosing the right home insurance can give you peace of mind that your home’s charm, character, and structure are protected. By understanding what insurers look for and tailoring your coverage to your home’s unique needs, you can enjoy your piece of history with confidence.
