If you’re purchasing a historic home, you might be dismayed to discover that your insurance costs are higher than you thought they might be. Unfortunately, there are some aspects of older homes that can increase insurance costs. Here are common insurance factors and what you can do about them.
1. The presence of old wiring.
Many older homes do not have updated electrical systems. Some outlets, for example, may not be grounded. Some attics or second floors may still have knob and tube wiring that insurance agents see as a fire hazard. Small circuit boxes, fuses, and other features of antique electrical systems also drive premiums up. Mid-century updating may also indicate the presence of aluminum wiring, which is now considered to be unsafe. By updating your electrical system, the risk of fire decreases and so could your insurance premium.
2. The older roof.
If your home’s roof has not been recently updated, you’ll end up paying a higher premium. Old homes are more likely to have leaks, failing shingles, or storm damage because of the age of the materials. Even if your home has historic slate or wooden shingles, consider ordering new ones that mimic the older style instead of depending on antique roofing materials.
3. Plumbing.
Plumbing practices have come a long way, and a well-built modern home will have nicely designed plumbing and drain systems that easily connect the main systems of your community. Older homes may have clay or lead pipes. Clay pipes deteriorate over time, leading to major plumbing issues that can ruin your home. Lead pipes can corrode and they can lead to health problems, making your property a greater liability for visitors. If you have older plumbing systems in your house, have them inspected by a contractor to make sure they are in tip-top shape, and have any lead or clay components replaced.
4. Charm.
Some older homes have beautiful hardwood floors, unique woodwork, and interesting details that make them—to some owners—worth the trouble. The presence of plenty of woodwork, hardwoods, and other desirable features in your historic home can actually make your premium higher just because the cost to replace these items in the event of a major disaster like a fire would be so much higher. Unfortunately, short of removing these items, there is not much that can be done to negotiate replacement costs, unless the agent is overestimating the amount of original charm your home actually has.
1. The presence of old wiring.
Many older homes do not have updated electrical systems. Some outlets, for example, may not be grounded. Some attics or second floors may still have knob and tube wiring that insurance agents see as a fire hazard. Small circuit boxes, fuses, and other features of antique electrical systems also drive premiums up. Mid-century updating may also indicate the presence of aluminum wiring, which is now considered to be unsafe. By updating your electrical system, the risk of fire decreases and so could your insurance premium.
2. The older roof.
If your home’s roof has not been recently updated, you’ll end up paying a higher premium. Old homes are more likely to have leaks, failing shingles, or storm damage because of the age of the materials. Even if your home has historic slate or wooden shingles, consider ordering new ones that mimic the older style instead of depending on antique roofing materials.
3. Plumbing.
Plumbing practices have come a long way, and a well-built modern home will have nicely designed plumbing and drain systems that easily connect the main systems of your community. Older homes may have clay or lead pipes. Clay pipes deteriorate over time, leading to major plumbing issues that can ruin your home. Lead pipes can corrode and they can lead to health problems, making your property a greater liability for visitors. If you have older plumbing systems in your house, have them inspected by a contractor to make sure they are in tip-top shape, and have any lead or clay components replaced.
4. Charm.
Some older homes have beautiful hardwood floors, unique woodwork, and interesting details that make them—to some owners—worth the trouble. The presence of plenty of woodwork, hardwoods, and other desirable features in your historic home can actually make your premium higher just because the cost to replace these items in the event of a major disaster like a fire would be so much higher. Unfortunately, short of removing these items, there is not much that can be done to negotiate replacement costs, unless the agent is overestimating the amount of original charm your home actually has.
No comments:
Post a Comment