Living in an older house is a great way to make sure your space has plenty of charm and character, but it can also entail some extra costs when it comes to repairs and replacements. If you live in an older house that has historical value, it’s important to get a historic home insurance plan that will help keep your property in its original condition, while keeping you financially protected in today’s environment.
Unraveling the Mystique of Historic Home Insurance
Older houses need coverage just like any other property, but may have additional considerations because of their historical value. Before you start shopping for plans to insure a historic home, get started by making sure you understand the details of living in and maintaining your own slice of history.
What Qualifies as a Historic Home?
There are plenty of old houses out there, but they don’t all qualify as historic sites. In fact, to get an official designation, your property needs to fulfill certain expectations. The National Register of Historic Places will evaluate your house based on a few key qualifications.
The house needs to be at least 50 years old, it needs to look similar to its original construction, and it also needs to have some level of cultural significance. That could mean an important person lived there or your house was related to a major event in history. It could even qualify as culturally significant if its design is a great example of architecture in a certain era.
The Importance of Specialized Coverage for Your Piece of History
If your new place has historical value, it’s crucial to make sure your homeowners insurance has you covered. Although your house may need some basic repairs and construction to bring it up to modern code standards, it’ll probably have higher replacement costs if there’s a structural problem or a natural disaster damages it.
It can be more expensive to keep the original character of an older home alive because you want to replicate its historical features. Old homes can also have structural issues that require expensive, specialized repairs. As a result, you need to make sure your plan can cover these problems when they pop up.
Key Coverage Criteria for Historic Homes
Getting the right insurance plan for a historic property can be confusing, especially if you’re a first-time homebuyer. Keep your eye out for the following key details when shopping for a policy.
Standard vs. Specialized Policies: What’s the Difference?
A standard homeowners policy is designed to cover standard claims. But if you have a special home with historic value, you may need a specialized policy.
Your typical plan will cover standard repair costs for a modern property damaged under a covered event. However, many homeowners have policy limits and exclusions that won’t account for complex restorations to maintain your house’s original look and value. They may also require you to have certain modern structural features that aren’t common in historic properties.
Specialized policies can ensure that your more expensive repairs fall under a covered event. You can even set up extra protection if you have valuable items or collections in your home.
Tailoring Your Policy To Protect Against Unique Risks
When setting up a plan, talk to your insurer about special risks for historic homes, such as electrical issues. You’ll want to confirm that your home insurance will cover your plumbing, especially if it’s original. Look for policies that offer a guaranteed replacement cost or actual cash coverage. This will ensure you can rebuild and repair your place to its former state instead of having to get cheaper, modern updates.
Navigating the Complexities of Value Assessment
Determining the value of your historic home for your insurance policy can require some extra nuance. You may need to register your property as a historical landmark or seek appraisal support from an expert.
Start Protecting Your Historic Home Today
Historic properties are often beautiful, unique pieces of architecture that can add a bit of flair to your everyday life while also helping you preserve a special period in time. However, to ensure that your older home maintains its historic status, you need to have the resources to be a responsible steward of the property. Setting up specialized homeowners insurance makes it possible for you to repair your home to its original state, making upkeep a breeze.
If you’re thinking about buying a historic home or simply upgrading your current insurance, talk to your friends at Freeway Insurance. You can explore different specialized coverage options and curate a plan specifically for your unique home. Talk to an agent at your nearby Freeway Insurance office, check out the website for a free quote or call 800-777-5620 to get started.
FAQs: Safeguarding Your Legacy with the Right Insurance
Before you commit to your new policy, make sure you understand everything there is to know about insuring your property by browsing these FAQs.
Is My Home Too Old To Insure?
Some older properties may not qualify for traditional homeowners insurance due to structural issues. However, you should still be able to set up some form of coverage with a specialty plan to insure your older home, even if the coverage is limited.
How Can I Determine If My Current Policy Adequately Covers My Older Home?
If you already have a policy in place, it’s important to make sure it covers all your bases. Look at your policy limits, the percent of repair costs the insurer will cover, and what types of repairs are included in the policy.
What Is Ordinance or Law Coverage, and Why Is It Important for Historic Homes?
Ordinance or law coverage is an insurance feature designed to make sure your house meets local building standards. For example, if your old home has an electric system that doesn’t meet codes in your area, your plan will help cover the cost of upgrading it. This is especially important for older properties that were built to older, more relaxed code standards.
Can Installing Modern Safety Features in an Older Home Impact Insurance Rates?
Older houses often lack many of the modern safety features designed to prevent common accidents or issues. By updating your HVAC, plumbing, or electrical systems, you could get a lower rate on your insurance due to the decreased risk. Adding other features, like alarm systems, may also get you a discount.
How Does the Landmark Status of a Home Influence Insurance Options?
If your property is an official landmark, you need to take extra steps to ensure its preservation. That means you may need to get specialized insurance to verify that you’ll be able to pay for the repairs and upkeep of the property.
