Are Older Homes More Expensive to Insure?

Buying an older home can provide you with numerous benefits. The beautiful character, the attention to detail and the historic charm of the new home can be exciting. However, there are added risks to buying a home that many home buyers do not think about. And, home insurance companies do notice these. That is why you may find that purchasing an older home will lead to a higher insurance premium in many cases. Why do you have to pay more to cover your older home?

What Is Wrong with Your Older Home?

Just because your home is older doesn’t necessarily mean it has problems. However, there are more unknowns in this house than one that is newer. As a result, the insurance company wants to protect itself from a high claim down the road. Here are the most common types of risks associated with older homes that may lead to a higher home insurance cost.

• The wiring is older and perhaps faulty. While building codes change to make newer homes safer, older homes rarely see wiring upgrades until there is a problem. This unknown risk adds to your policy.
• The plumbing is older as well. You may even have galvanized steel pipes in your home. This leads to rusting, which leads to potential backups and leaks. Because of the higher risk of flooding, you may pay more for coverage.
• The roof may have passed its lifespan. Older roofs, especially those beyond their 15 to 20-year lifespan are more likely to have structural damage and replacement needs. Newer roofing systems last longer, are more energy efficient and are likely to withstand hail and wind damage more effectively.

In addition to these factors, your older home may have rare and harmful materials in it such as lead paint, antique doors, and reclaimed wood. Your older home may have appliances that are out of date and potential fire hazards. Because of these risks, home insurance companies may elect to charge you more for coverage on your home. If and when you update these systems within your home, be sure to let the insurance company know so they can also adjust your insurance premium to match the new risk level present.