Finding insurance for an older home does not have to be difficult. There are many companies that specialize in older home insurance coverage for an affordable price. You should always compare quotes to find a rate that fits your budget and your needs.
Whether your home is 20 years old, or considered an historic home, the insurance needs will vary compared to new homes. Homes that were built many years ago may have out dated building materials or tile and crown molding that can no longer be found. For this reason, many home insurance companies will not insure an older home. You will need to find a plan that specializes in older properties and will give you the coverage you need.
Insurance policies are listed from HO-1 to HO-8. An HO-1 policy is basic and only covers the bare necessities. If you live in a newer home, you probably have an HO-3 plan. Most older homes, on the other hand, will require HO-8 coverage. Many insurance companies will insure an older home for the market value. Unless you live in a historic home, you probably would not want to re-build the house using all of the outdated materials anyway. By insuring the home for the value, you will pay a lower rate and you will still be able to replace the home.
Many companies may also offer a better rate by not insuring the old plumbing or electrical systems. This would mean that if a fire or flood occurred because of the plumbing or electrical, the insurance company would not take care of the damages. Although this type of policy might save you money each month, in the long run, if there was a problem, you would be left paying for the damages out of pocket.
The best plan of action is to find companies that specialize in policies for older homes. Comparing the rates of several insurance plans will help you find one that offers the protection you need for a price you can afford. People often enjoy living in their childhood home, but don’t always consider the special considerations that go into living in older homes. Make sure you are prepared for any type of disaster with a great insurance plan.