Is Your Homeowners Insurance Built to Last?

Who hasn’t admired a beautiful Victorian home adorned with intricate gingerbread trim, marveling at its craftsmanship and elegant design? Older homes are certainly charming and can be a joy to live in. However, they can also present some challenges, such as smaller closets, drafty windows, and more complex insurance coverage needs.

While the character of older homes — with their plaster walls and hardwood floors — is appealing, they can also be more costly to repair. Copper pipes in these homes may develop pinholes that cause water leaks behind the walls, and aluminum wiring can overheat, increasing the risk of fires. These factors, along with other age-related issues, can raise the cost of insurance premiums.

However, it’s not just century-old Victorian homes that can be difficult to insure. Homes like the classic Sears & Roebuck kit houses, often assembled by homeowners themselves, and early Modernist homes with flat roofs, which are prone to leaks, can also face higher insurance costs. Historic properties may also be subject to local regulations, limiting what you can do to modernize or repair them.

Insurance options for older homes do exist, but they often come at a higher cost with less coverage. For newer homes, an HO-3 policy is typically standard. However, owners of older homes that don’t qualify for an HO-3 may be offered an HO-8 policy.

There are key differences between these two types of policies. For instance, an HO-8 policy may not cover the full replacement cost of your home. Since older homes may be more expensive to repair using original materials, an HO-8 policy will only pay the actual cash value of your home at the time of loss, factoring in depreciation.

While standard homeowners policies typically cover all perils (except those specifically excluded), HO-8 policies are more limited. They generally cover only 10 causes of loss:

• Fire or lightning

• Windstorm or hail

• Explosions

• Riot or civil commotion

• Damage by aircraft

• Damage by vehicle

• Smoke damage

• Vandalism

• Theft

• Volcanic eruption

Certain types of damage may be specifically excluded, such as losses caused by the failure of water heaters, falling objects, power surges, and freezing pipes.

Given the complexities involved in insuring an older home, it’s wise to consult with a knowledgeable We Insure agent. Our agents are well-versed in a variety of policies and endorsements and can help tailor a homeowners policy to your needs. With access to a wide range of insurers, they can offer you the best selection of coverage and premiums.

Not all insurance policies are the same, so it’s important to do your research, especially with older homes. Regularly reviewing your coverage with an agent is also crucial. As you renovate and repair, you may increase your home’s value and reduce risk, which could lower your premiums.