Insurance Considerations for Older Homes


Whether you are a first-time buyer with a taste for character or an experienced homebuyer looking for nostalgia, there is always a market for older homes and properties. While there are many imitators, there is no substitute for the classic stylings of a well-preserved, vintage home design. Though below the surface, there may be problems– this has to be factored in when seeking to insure your dream home! For more information, read Capital’s guide to insurance considerations for older homes below.

Make the Upgrade

Plumbing, heating, wiring– these are just some of the areas in your older home that may need to be inspected prior to getting the proper insurance. Upgraded or renovated systems may qualify for discounts, making the decision to invest in them easier to reason. The initial cost can be steep, but it often works out in your favour over the long term.

Risk and Reward

Often with older homes, insurance companies will calculate your rate on a variable known as “risk.” High risk homes qualify for much higher premiums, as they are more likely to encounter problems– therefore, they are a less sensible investment for the insurance companies. Lowering your home’s risk with repairs and renovations can help balance the risk presented by uncontrollable variables, such as location or age.

Know Your Heritage

Sometimes a property can be eligible for “heritage” status or another similar title. This is often undertaken by a municipality seeking to preserve historically significant buildings. While it may sound prestigious, recognized status can be a double-edged issue: your property may be protected, but you may also be liable for expensive requirements. Your property’s status may or may not impact the type of insurance you seek, but always verify your chosen policy with a qualified broker to ensure your heritage home is properly covered.

When buying an older home, it may be tempting to keep a feature such as a wood burning stove– but safer model may be more affordable to insure! These are the choices you will face, so do not face them alone: contact or visit Capital Insurance today.