An older home often has a certain charm and appeal to many people. These homes are also usually cheaper to purchase compared to a more modern house. However, one of the drawbacks of older homes is that the price of homeowners insurance is more expensive due to the increased chance of problems, whether it’s foundation issues, outdated electrical systems, plumbing problems, or a deteriorating roof. Understanding how all of these potential problems with an older home impact the cost of your insurance is essential to helping you choose the best insurance provider to meet your needs.
Which Factors Impact the Price of Insuring Older Houses?
Several different factors play a key role in calculating the cost of homeowners insurance. For example, buying insurance for a 100-year-old house is much different compared to finding insurance for a home that’s 40 years of age. Homeowners insurance rates will increase with age due to the increased chance of experiencing problems. Another factor impacting the cost of insurance is the building materials used for your home. Rare or handmade materials are much more difficult to replace, as an insurer will need to perform an additional review to make sure your home is eligible for coverage.
Original wiring in an older home is often a bigger safety risk due to the chance of fire. Sometimes an older electrical system will need to be replaced by professionals to stay in compliance with today’s building codes. An outdated plumbing system can also cause numerous issues, as the chance of experiencing leaks, busted pipes, or blockages is much greater in an older house. Similarly, an older roof is much more prone to leaks and damages over time. All of these different factors can increase the cost of a homeowners insurance policy.
Unexpected Factors That Can Impact the Cost of Insurance
The age of a home and how it was constructed are just a few of the many different factors impacting the cost of insurance. Many unexpected factors can also affect the price, such as living near a fire station or the type of dog you own. The distance from the ocean will also play a key role in determining the price of insurance, as homes closer to the coast are much more likely to experience flooding. Attractive nuisances are another key factor, as this includes anything on your property that may be appealing to kids, such as swimming pools, treehouses, swing sets, or fountains.
How to Lower the Cost of Homeowners Insurance?
Looking at different ways to reduce the cost of homeowners insurance is often a top priority. Making upgrades to your house can help lower these costs, whether it’s investing in a new roof, installing a new plumbing system, or replacing outdated wiring. Of course, the cost of these home improvement projects can quickly add up. Considering all of the costs of making these upgrades is important to help you determine if it’s worth making these changes to an older home.
Additional Tips On Saving Money With Your Insurance Policy
Making upgrades to an older home isn’t the only way you can save yourself money. Choosing to bundle your coverage with the same carrier is another possible way to reduce the cost of your insurance policy, such as buying home and auto insurance from the same provider. Increasing your insurance deductible is another way to save money, but it’s important not to increase it too much if you can’t afford the risk of a higher deductible. Asking about discounts can also reduce your homeowners insurance, whether it’s installing a security system or going clam-free for a specific number of years.
Why You Need to Schedule a Home Inspection
Scheduling a home inspection is often necessary for insurance if your house is 25 years of age or older. A professional inspector will look at different aspects of your home, which include the roof, plumbing, HVAC system, and electrical work. Once the inspection is finished, they will send their findings to your insurance carrier to determine your coverage and rates. If your home fails inspection, it’s sometimes possible for you to make the necessary repairs within a specific time frame to be eligible for insurance.
Do You Need Different Insurance Coverage for Older Homes?
HO-8 policies are typically used for houses that are at least 40 years of age or older. An HO-8 is a named-peril policy, as it covers the dwelling, personal property, liability, and loss of use to any named perils. These named perils include fire, lightning, hail, windstorm, explosion, riot, smoke, vandalism, theft, volcanic eruption, or damage from either vehicles or airplanes. Many of these older home policies use the cost of construction to pay out an insurance claim.
High-Value Homeowners Insurance
You may want to consider high-value homeowners insurance if you own a home with a value of $750,000 or higher. This insurance is ideal for older homes that were built with construction methods that aren’t common for modern-day homes. Historical properties and houses with architectural significance can often benefit from these policies. Contacting an insurance agency can help you compare all of your options to find the best policy to meet your needs.
Guaranteed Replacement Cost Coverage vs. Actual Cash Value
Guaranteed replacement cost coverage is always recommended for older homes. Getting this coverage makes it possible for the insurance to pay for the full cost of repairing or rebuilding a home without any depreciation. On the other hand, the actual cash value is the amount equal to the cost of replacement while including the depreciation of an item, which wouldn’t be helpful for insuring older homes. Reaching out to your local insurance agent is always a good idea if you have any questions about the details of your policy.
Optional Insurance Coverages to Consider
Numerous problems can often happen unexpectedly in older houses. Purchasing additional insurance coverage is a great way to protect you from these incidents while also giving you more peace of mind. For example, water backup coverage is an excellent choice for repairing or replacing the water pipes in your plumbing system. Service line coverage is also helpful if you need to repair or replace the gas or sewer pipes in your home. Roof replacement coverage and flood insurance can also provide you with an added level of protection.
Why You Should Partner With an Insurance Agency
Searching for homeowners insurance for an older house can often feel stressful and overwhelming. Comparing numerous quotes from several different insurance providers is a time-consuming experience that requires a lot of research. One way to expedite this entire process is to partner with an insurance agency. These professionals work with a wide range of insurance carriers to help you find the best homeowners insurance to meet your needs while staying within your budget.
Working with an agency gives you the flexibility to find the optimal amount of coverage, and you can always reach out to them if you have any questions about your policy. You can even visit an agent at a local office for a much more personal experience than working with a call center-based insurance company. An independent agent will also be your advocate if you have any issues with billing or a question about your insurance claim. Overall, working with an insurance agency is a wise decision for anyone in need of homeowners insurance.
Contact Wellcovered Insurance Today for Homeowners Insurance
Wellcovered Insurance is one of the top-rated insurance agencies that work with a wide range of clients in Seminole and Volusia County. Our goal is to help you find the best homeowners insurance coverage, whether it’s a modern or older house. We also offer personal lines insurance for vehicles, boats, motorcycles, RVs, rental property, and much more.
Providing top-quality customer support is one of the main priorities at Wellcovered Insurance, as we will give you an auto quote in 15 minutes or less, and it only takes one or two business days for you to get home quotes. We are also available to answer any of your insurance questions.
Keeping an active presence in the community is important, as we are a proud member of both the DeLand Breakfast Rotary and the West Volusia Regional Chamber of Commerce.
Feel free to reach out to Wellcovered Insurance to receive a quote for homeowners insurance in Florida!
