If you are purchasing an older home or your home is climbing higher in years, you may wonder if your options for home insurance are limited. The good news is that you can still insure an older home. The bad news is that you may pay higher premiums to insure an older home with home insurance.
Older homes are seen as insurance providers as “high risk” primarily due to increased safety hazards that come with an aging home. As a home grows older, more issues can arise due to weakening foundations, structural complications and outdated materials.
Of course, there is a difference between an older home that has been upgraded and a home that has not been upgraded in several years or even decades. In some cases, an insurance provider will require that the home meet certain improvements before insuring, primarily for safety and legal purposes. Homes must meet the certain requirements of their city and, if applicable, HOA rules.
How Much is Home Insurance for an Older Home?
The cost of your home insurance rates based purely on age may be only slightly higher than average, but this depends on several other factors, including the state of the home. If the home has not been upkept or upgraded, it will cost more to insure.
Other factors influencing the rates of your older home’s insurance policy include:
Ask your insurance agent and shop around to compare quotes so that you can save money on home insurance for your older home.
Is Home Insurance Required for an Older Home?
Most homeowners are surprised when they discover that home insurance isn’t typically required by any state or federal law. However, home insurance may be required by a lender if you still have a mortgage on your home. On an older home, however, you may not have a mortgage to worry about. If the home is paid off, you will likely not be required to carry home insurance. This doesn’t mean that you should go without coverage, however.
Not having home insurance leaves you open to more financial loss when it comes to an accident, storm, natural disaster or lawsuit.
Speak with an insurance agent about protecting your older home and saving money on home insurance. Safety improvements can go a long way to save you money on home insurance.