How to get homeowners insurance for an older home

Why are older homes more expensive to insure than newer homes?

Some insurers consider homes built more than 40 years ago as older properties. Homeowners insurance for older properties can be more expensive because:

• Structures and systems that have seen decades (or even centuries) of wear and tear may be more likely to cause problems
• The cost of rebuilding an older home can also be higher than its market value, especially if the materials used are no longer available or aren't up to code

What factors affect the price of insuring older homes?

Many components impact your homeowners insurance cost for an older home such as:

• Building materials: If your home was built using rare or handmade materials, the cost of replacing it might rise considerably. These types of homes may require additional review by your insurer to ensure your property is eligible for coverage and that the correct protection is afforded.
• Roofing: An older roof may be less likely to withstand damage and may raise your insurance premiums. With an older home, the materials used to construct the roof can also cause concern, as the materials used years ago were heavier and less durable than those used today. Depending on the age and roof material, your property may not be eligible for coverage and a full roof replacement by a qualified professional may be required.
• Electrical wiring: Electrical codes are much more stringent now than they were just a few decades ago. If your home still has its original wiring, there may be a higher risk of fire or other issues. Depending on the age and type of electrical system, your property may not be eligible for coverage. Older electrical systems may need to be professionally decommissioned, and a new system installed.
• Plumbing systems: Outdated plumbing systems are often built with materials that are more susceptible to leaks, blockages, and burst pipes.

Updates to your older home, such as a new roof, can better safeguard your property against damage from perils and potentially lower your home insurance rate.

Specialized coverage for older homes

Homeowners who are unable to secure a standard homeowners policy often turn to HO-8 insurance coverage for older homes. HO-8 policies cover fewer perils and include lower dwelling coverage limits but may cost less. Insurers may require you to purchase an HO-8 policy if they determine that it would cost more to rebuild your home than it's currently worth.

Building code upgrade coverage, also known as "ordinance or law coverage" may be useful for an older home that hasn't been updated to bring it up to the latest building codes, if there is applicable damage from a covered peril. However, it won't cover normal renovations.

How to lower your homeowners insurance rate

Even if you own an older home and are facing significant costs to renovate or repair, you may have options to lower your homeowners rate, such as:

• Increasing your dwelling coverage or personal property coverage deductibles, if possible
• Bundling your homeowners insurance with another policy, such as auto, boat, or RV
• Adding a security system for a possible discount
• Upgrading your home's wiring and/or replacing your roof

How to get home insurance for an older home