Insurance Basics: Everything You Need to Know

Why Insurance For Old Homes Home Cost More, And How To Lower The Costs

If you have been getting homeowners insurance quotes for an older home, then you have probably realized that insuring an older home is both difficult and expensive, and with good reason. Here are some of the reasons your older home seems to be attracting unreasonably high premiums:

They Have Outdated Systems

Plumbing systems, heating systems, cooling systems, and electrical systems, among others, all deteriorate with time. When they deteriorate, they become both ineffective and dangerous. For example, deteriorated plumbing pipes may burst and flood your house with water or sewer effluent. Another example is deteriorated heating systems, which are also serious fire risks, especially if they are not properly monitored.

Aging and Weak Materials

The longer your house has been in existence, the more it is likely to have aging materials. This will be the case even if your house is properly maintained. All constructions materials have finite lifetimes, and they are all affected by regular wear and tear, as well as weathering. Metals corrode, wood rot, and plastic (such as PCV) deteriorate over time. This means that an aging house is more likely to be damaged during a disaster (such as a storm) than a relatively new house.

Overloaded Electrical System

Your electricity needs probably increase with time as you acquire more electronics and electrical systems. At the same time, older houses were outfitted with smaller electrical circuit breakers as compared to contemporary houses. What is more, the electrical installations and wiring in older homes have probably aged over the years, reducing their effectiveness. This means they can fail at any time and cause an electrical fire that may burn down the house.

Difficulty of Replacement

Lastly, some older homes were constructed with materials that may have been common by that time, but are now expensive. Some of them were also constructed in architectural styles that are pretty expensive to replicate today. It costs insurance companies considerable money to replace or rebuild such homes in case they are damaged, and the best way your insurance carrier can protect themselves is to charge you reasonable premiums that may cover the costs.

The good news is that you don't have to resign yourself to high insurance costs if you have an older home; there are things you can do to lower the costs. For example, you can get rid of the dangerous systems or outdated materials and replace them with safer ones. An insurance agent or your insurance company can give you more information on other improvements that may help. To find out more about insuring your home, turn to the team at ALTRE Insurance Agency Inc.