Insuring an Older Home

What underwriters look at

• Roof age and material
• Electrical service and wiring type
• Plumbing material
• Heating system and fuel
• Updates with dates

Building code upgrades

After a loss, local codes may require upgrades that were not needed when the house was built. Standard policies limit or exclude the cost of meeting current codes. Ordinance or law coverage adds a limit for those costs and is worth discussing for older homes.

Inspections

Some insurers require an inspection or photos before binding or soon after. Fixing obvious hazards, such as missing handrails or a failing roof, makes approval easier.

Replacement cost for older construction

Rebuilding an older house to match what was there can cost more than its market value suggests. Plaster walls, hardwood trim, custom millwork and older framing methods take more skilled labor than modern drywall construction. Some insurers will only insure older homes on a modified replacement cost basis, which pays to repair with modern materials of similar function. Ask each quote how the loss settlement works.

Records that help underwriting

• Roof replacement invoice with the year and material
• Electrician's report or permit for panel and wiring updates
• Plumber's invoice for pipe replacement
• Heating system service records
• Photos of the exterior and any recent improvements

Ordinance or law in practice

Ordinance or law coverage generally has three parts: the value of the undamaged portion of the building that must be torn down, the cost of demolition, and the extra cost to rebuild to current code. It is usually expressed as a percentage of the dwelling limit. For houses built before modern electrical, energy or accessibility codes, these costs can be significant, so compare the limits each quote offers.

Frequently asked questions