Can You Insure an Older Home?

If you’re looking to insure an older home, you may have more difficulty than expected. Older homes are generally harder to insure because they present more risks than newer homes due to age and condition. An older home generally has less updated fixtures and systems, poor roofing and less reliable siding and foundations. This can lead to a lot of problems. 

It is still possible to insure an older home, but it may be more difficult and you could face requirements before being able to sign a policy. 

Insurance Requirements for Old Homes 
In many cases, some insurance providers will insure an older home on the condition that you make certain repairs and updates. Homes generally must follow city ordinances and laws on certain upgrades and safety features. If your house is out of date on these ordinances, it is unlikely that you will be able to purchase insurance before upgrading. 

It’s not enough to simply say you have done repairs and push them off for later, however. The insurance provider generally will demand a home inspection, which will reveal areas of the home that could be high risk for damage. These inspections are also how your home’s premiums are calculated. 

Is It Cheaper to Insure an Older Home? 
You may think an older home would cost less to insure than a brand-new home. Unfortunately, this isn’t the case. Insuring an older home actually tends to be more expensive. This is because older homes often: 

• Go up in value depending on the area around them
• Need special materials for repairing or replacement after a disaster
• Present more risk of a claim than newer homes 

On one hand, aspects of the home that are unique to older homes (plaster ceilings and nonstandard windows, for example) can raise your rates because of their rarity or value. On the other, aspects of an older home can raise rates because of the danger they present, such as old sewage systems or gas stoves. 

Older homes are more susceptible to fire and bad storms, especially if you live in an area that has tropical storms, tornadoes or significantly dry weather. So, while it is difficult to find insurance for older homes, it is possible.  

What is Considered an Older Home? 
A home anywhere between 10 and 25 years of age may be called older. The older the house, the more difficulty you may have finding insurance.