In many ways, there are few differences between purchasing a historic home and a newer build. You must go through the same purchasing procedures and home inspection. Your mortgage will look the same regardless of the date of the home and you will need homeowner’s insurance. One big difference is the type of homeowner’s insurance policy you take out and what it covers.
Replacement Coverage
It is typical to have replacement coverage on a homeowner’s policy. If your roof is damaged during a hail storm, your homeowner’s insurance will pay to have a new roof installed. If strong winds break a window, your insurance will cover the cost of a replacement. The new materials may even add to the value of the property. This is not true for historic homes.
Covering Restoration
The value of a historic home is found within its materials and craftsmanship. Replacing those materials with modern alternatives can lower the home’s worth. Instead, you will need to hire craftsmen who can replicate building and installation methods from the time that the home was originally built. You will also need to find materials that match the originals as closely as possible. This is what is known as restoration. A typical insurance policy covers replacement, but the historic homeowner needs insurance that covers restoration as well.
Behind the Antique Façade
There are some parts of a historic home in which originality will no longer suffice. Wiring and plumbing must be kept updated in order to make certain that the home won’t fall victim to moisture, mold or fire hazards. Electrical wiring is typically covered by homeowner’s insurance, but the details of that coverage vary depending on policy. Talk this over with your broker so you know exactly what is covered and what isn’t.
Ensuring Historic Home Insurance
Your insurer should conduct a thorough appraisal on your historic home before the policy is written. The appraisal will allow them to accurately assess how much each component of the home is worth. There will also be a record of the original materials and styles that were used in the home. If you bought your home furnished with antique accessories, lighting, art or furniture, this should be a part of the appraisal as well.
Private Management Insurance Agency is highly willing to offer whatever assistance you may need at each step of the quoting and transaction process. You can reach our customer service team on Monday through Friday from 9 am-5 pm PST— Call us at (858) 252-4111, or you can also set a schedule with us just by clicking here:
