Older homes have charm, character, and history—but they also come with unique risks that can make getting homeowners insurance more challenging. If you own or are buying a house built before 1950 (or even earlier), you may wonder:
Yes, but it may require special coverage, higher premiums, or a historic home policy.
In this guide, we’ll cover:
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Why Insuring Old Homes is Different
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Challenges of Insuring Older Houses
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Types of Coverage Available
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Best Insurance Companies for Older Homes
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Ways to Lower Your Premiums
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Tips for Getting Approved
Let’s dive in.
1. Why Insuring Old Homes is Different
Older homes (typically 50+ years old) present unique risks that standard homeowners insurance may not fully cover, such as:
Outdated electrical wiring (knob-and-tube, aluminum) → Higher fire risk
Aging plumbing (galvanized pipes, lead) → Water damage risk
Old roofing materials (wood shakes, slate) → Higher repair costs
Historical building codes → Expensive restoration requirements
Obsolete heating systems (oil tanks, coal chutes) → Liability hazards
Because of these risks, insurers may:
Charge higher premiums
Require a home inspection
Exclude certain perils (e.g., sewer backup)
Offer limited replacement cost coverage
2. Challenges of Insuring Older Homes
A. Higher Risk of Claims
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Older homes are more prone to fire, water damage, and structural issues.
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Insurers may see them as “high-risk” properties.
B. Replacement Cost vs. Actual Cash Value (ACV)
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Standard policies often pay Actual Cash Value (ACV), which deducts depreciation.
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Problem: A 100-year-old roof may only be valued at $500 when it costs $20,000 to replace.
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Solution: Look for “Guaranteed Replacement Cost” coverage.
C. Historic Home Requirements
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If your home is officially designated as historic, you may need a specialized policy.
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Example: A Victorian-era home with original woodwork may require custom restoration in case of damage.
D. Limited Insurer Options
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Some big-name insurers (e.g., State Farm, Allstate) may decline very old homes.
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You may need a surplus lines insurer (non-standard market).
3. Types of Coverage for Older Homes
| Policy Type | Best For | Key Features |
|---|---|---|
| Standard HO-3 Policy | Moderately old homes (updated systems) | Covers fire, theft, liability |
| Dwelling Fire Policy (DP-1/DP-3) | Very old or vacant homes | Basic named-peril coverage |
| Modified Coverage (HO-8 Policy) | Historic or hard-to-insure homes | Pays repair costs (not full replacement) |
| Specialty Historic Home Insurance | Officially designated historic homes | Covers authentic restoration |
Key Takeaway: If your home is pre-1900 or has historic status, a HO-8 or specialty policy is often best.
ஆஹா கல்யாணம்
4. Best Insurance Companies for Older Homes
Nationwide
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Offers “Heritage” policies for historic homes.
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Covers original material restoration.
Chubb
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High-end masterpiece policies for luxury historic homes.
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Includes extended replacement cost.
Liberty Mutual
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Flexible underwriting for older homes with updates.
Foremost (a Farmers subsidiary)
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Specializes in hard-to-insure homes, including older properties.
American Modern (for HO-8 policies)
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Good for limited replacement cost coverage.
Avoid: Some insurers (e.g., Lemonade, Hippo) may not cover pre-1950 homes.
5. Ways to Lower Your Premiums
A. Upgrade High-Risk Features
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Replace knob-and-tube wiring with modern electrical systems.
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Install new plumbing (PEX or copper).
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Update the roof, HVAC, or foundation if needed.
B. Increase Your Deductible
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A higher deductible (e.g., $2,500 vs. $1,000) can reduce premiums.
C. Bundle Policies
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Combine home + auto insurance for discounts (e.g., State Farm, Allstate).
D. Get a Historic Home Discount
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Some insurers offer discounts for preservation efforts.
E. Shop Around Annually
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Older home insurance rates vary widely—compare quotes every few years.
6. Tips for Getting Approved
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Get a Pre-Insurance Inspection
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Proving your home is well-maintained helps with approval.
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Document Renovations
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Show receipts for updated wiring, plumbing, or roofing.
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Work with an Independent Agent
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They can find specialty insurers that accept older homes.
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Consider a “Functional Replacement Cost” Policy
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Pays to rebuild with modern materials (cheaper than full restoration).
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Avoid Filing Small Claims
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Too many claims can make an old home uninsurable.
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Final Verdict: Can You Insure an Old House?
Yes, but you may need:
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A specialized HO-8 or historic home policy
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Upgrades to outdated systems
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A higher budget for premiums
Difficult to insure if:
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The home has major structural issues
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It’s vacant or a fixer-upper
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No insurer accepts original knob-and-tube wiring
Have you insured an old home? Share your experience in the comments!
