How To Lower Insurance Costs For Older Homes

You probably know that it's difficult and expensive to buy homeowners insurance for very old homes. This is mainly because these old homes have deteriorated or outdated fixtures and installations that can fail at any time. However, you can take measures to ensure that the insurance costs for your old home don't break the bank. Here are a few examples of these measures:

Update Dangerous Fixtures

One of the problems with insuring old homes is that they have old fixtures and installations that have deteriorated with time. For example, plumbing and electrical installations deteriorate with time, and their deteriorations increase the risk of water damage and electrical fire, respectively. Some of them may also have dangerous materials that were in use in the past but are no longer used today.

Insurers have to raise their rates to cover these increased risks. Therefore, you have to eliminate or reduce the risks to enjoy lower rates, and this usually means renovating or upgrading the home. Some of the areas to focus on include the electrical, plumbing, and heating system since they represent serious threats to the house if they aren't in their best conditions.

Opt For Cash Value

Some old homes were constructed with materials that are rare and expensive today. This means insurance companies that cover such properties have to use significant money to reconstruct a damaged property to its pre-damage status. This is why some insurance companies don't offer replacement cost coverage to old houses, and those who offer it do so at high rates. Therefore, you can lower your premiums by opting for cash value instead of replacement cost coverage. After all, even the replacement cost coverage might not be practical if you can't find the materials and architects to reconstruct your old home to its former glory after damage.

Knock Down Unused Structures

The property coverage of your insurance doesn't just cover your main dwelling unit; it also extends to other structures on your property, such as a garage, fence, gazebo, barn, and others. Many old homes have bigger properties than newer homes, which increases the likelihood that your old home has multiple structures, some of which you may not even need. Therefore, knock down these unused structures so that they aren't factored in your rate calculations.

Therefore, don't assume that an old home should necessarily cost an arm and a leg to insure; you have the ability to control some of the factors affecting the rates. Talk to your insurance agent to help you figure out more ways of lowering the insurance rates for an old home. Contact a company like Germain Insurance Agency to learn more.