Many people are attracted to old homes because they seem classy and have antique features. When buying an older home, you should think about the repairs and replacements that may be needed in the old electrical and plumbing systems. You need to also ask yourself, what effect an older home has on your insurance policy rates? The structural condition and age of the home are some of the factors that make your homeowner’s insurance premium rate higher.
Compared to a new home, an older home may have more structural issues and older systems that will need replacement and repair and hence have a higher risk of damage. Most insurers offer high premium rates to clients with older homes due to the higher possibility of them filing claims. Furthermore, the cost that will incur when replacing or rebuilding an old home with unique features is higher than that of a new home.
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Are older homes harder to insure?
Even though it is possible to get insurance cover for your old home, there are certain cases where an insurer may deny you the homeowner’s insurance policy.
When this happens your property is referred to as uninsurable and shows that the home has higher odds and possibility of being destroyed or damaged leading to its complete loss.
Your insurer will not write a cover for you if your home is considered uninsurable. Buying insurance for such property is a loss on your investment since it is an extreme and unknown risk.
Before an insurer can declare that the property is uninsurable, they will conduct an inspection and report on issues that make the home not to be covered. Below are some of the reasons why your insurer may classify your home as uninsurable.
Main reasons why insurance companies refuses clients:
- Older roofs
- Asbestos siding
- Plumbing material
- Type of wiring
What to do with older roofs?
Homeowners’ insurance companies have specifications on how old different types of roofs should be for them to be covered. Every type and shape of the roof has a maximum insurable age limit.
The condition of your roof determines the durability of other features in your home. Water damages such as molding, house flooding, and leakages tend to cause more issues and increase the risk of damages.
Your home will therefore be considered ineligible if the roof has certain damages and is past the stated age limit. So in this case older homes are harder to insure.
Most old houses were built with asbestos siding since the material was more affordable, flexible, and resistant to fire.
Currently, the effects of asbestos when it is damaged have been discovered and are considered very dangerous to human health. Insurers are not willing to take risks associated with a house with asbestos siding.
Older homes were built and plumbing is done using galvanized pipes and polybutylene pipes in plumbing since they were a less expensive option.
These types of pipes, however, have several drawbacks such as being corroded from the inside, and their reaction with other water components. These pipes are no longer suitable for use in plumbing.
An insurer will deny you a cover if your home plumbing was done using these types of pipes. Additionally, such types of pipes raise the risks of water damage to your home.
Type of wiring
Those who built their homes earlier focused on cheaper wiring or their homes. Wiring such as aluminum and knob and tube wiring has several downsides when used.
These wiring options increase the chances of your home having an electrical fire and any other associated electrical risks such as shocks.
A homeowners insurance company will deny you an insurance cover for your home if it is wired using the aluminum wiring or knob and tube wiring. Rewiring is however advisable if you want to cover your home.
How do you insure an old house?
If you want to secure a homeowners insurance policy, there are several providers available in the market.
Different homeowners insurance carriers offer varying premium rates and conditions of coverage. Here are a few places you can get an insurance premium for your old house.
Do online research and find out companies that provide affordable homeowners insurance cover. Compare their premium rates, situations covered, and limits for your old house coverage.
When placing an order, ensure you have specified your personal needs so that the coverage is tailored to meet them. You can get your homeowner’s insurance cover from a licensed representative. They will provide you with a rate for insuring your old house.
Finally, you can contact a licensed independent agent to help you get insurance cover for your old home. Read more about selecting a independent agent.
Can an insurance company refuse to insure you?
Can an insurance company deny a homeowner an insurance cover? Yes. In some situations, you can fail to get an insurer who is ready to risk covering your old home.
Most insurers avoid giving premiums to homeowners whose homes have a high risk of damage. If your old home is inspected and tends to have a high risk of damage, your insurer may not take the risk of having to payout on claims. So older homes are harder to insure.
Insuring an older home is riskier than a new home due to the repair and replacements that may be needed.
Due to these high risks associated with an old home, insurers offer high premium rates on old home insurance.
In some cases, homeowners insurance companies deny a homeowner an insurance cover. If you are wondering whether you can insure your lovely old-style home, the answer is yet.
The insurance however depends solely on the condition of your home, potential sources of damage, and the type of materials used in electrical and plumbing work as well as construction materials.
You should also be keen and access an old home before buying it to ensure that it fulfills the conditions provided by the insured.
Some areas may also need replacement with newer systems before you can bag a convenient homeowners insurance policy that protects your old treasure.
Several providers like John Finds in the market will make you a customized homeowners insurance cover. Older homes are harder to insure.