Insuring older homes is more complicated than insuring newer homes because of factors like older building materials, outdated electrical systems, and the likelihood of numerous maintenance issues. When shopping for homeowner insurance for an older property, it’s crucial to be aware of specific coverages, potential risks, and policy limitations. Here’s a guide on what to look for when insuring an older home.
Evaluate Replacement Cost vs. Actual Cash Value
Older homes often have unique unique features and superior craftsmanship, which can be expensive to replace. In these cases, replacement cost coverage might be best. Why? Restoring the home using materials similar to those used in its construction and to the level of quality necessary will cost more than an Actual Cash Value policy. The actual cash value policy will take the property’s depreciation and wear and tear as part of its assessment, resulting in lower payouts for older properties and buildings, meaning that you might not have enough to pay for all repairs on the home.
Ordinance or Law Coverage
Most older homes often don’t comply with current-day building codes. If the home is damaged and needs repairs, you may be required to comply with current codes, which can be costly. You can get a plan that covers ordinance or law coverage to help cover the extra cost of these upgrades. These upgrades could include:
- Electrical systems
- Plumbing systems
- Structural upgrades
- Roofing (especially in hurricane zones)
- Fire safety improvements, such as sprinkler systems
If you don’t have this coverage, you may pay out of pocket for these to bring your home up to code.
Limited Coverage for Outdated Systems
Even if your area doesn’t have strict building codes that homeowners must follow, it doesn’t change the fact that many older homes have outdated plumbing, electrical, and heating systems. These systems are more prone to breakdowns or increase the likelihood of hazards like fires and floods.
Some insurers may offer reduced or limited coverage for these risks unless the systems are updated. Review your policies to:
- Ensure your policy provides sufficient coverage for damage from electrical fires and plumbing leaks. These are more common in older homes.
- Look for exclusions for systems that the insurer considers too old or hazardous. If the policy includes these exclusions, look into upgrading these systems or work with your insurance agent to find a policy that covers them.
- Ensure your policy includes protection against water backup from sewers or drains. Water backups are another common issue in older homes.
- Look for supplemental flood protection from internal flooding due to aging plumbing pipes and fixtures. Older homes might not handle water from heavy rains, as well as modern homes, so flooding is always a risk.
Liability Coverage for Potential Hazards
Some features of older homes increase the risk of injury or accidents. Features such as uneven stairs, deteriorating buildings, old wiring, or plumbing can injure someone on your property. Ensure your policy provides liability coverage to protect you from lawsuits and medical costs if someone gets hurt on this property.
Need Home Insurance in the Jacksonville Area?
Buying homeowners Insurance in Jacksonville is complicated, especially if you own an older home. Partner with the Mizrahi and Garris Insurance Agency to help navigate the process and ensure that your older home has adequate coverage. Connect with us for a free, no-obligation quote for homeowners insurance. We’ll help you find the perfect home protection plan customized to your needs.
At Mizrahi and Garris, we build lifelong relationships with our customers. Let us cover your home with best-in-class homeowners insurance. Call us at (904) 262-9202 or click our “Free Quote” to speak with one of our insurance experts today.