Having the right home insurance is important. It needs to match the amount of risk for the property.
The age of a home can play a role in how much home insurance on it will cost. It is not the only factor in determining the coverage needed and the premium rates. However, having an older home can impact how much your insurance costs. How does age matter?
How Was the Home Built?
Construction methods change often. What we know now is not what they knew 20 to 40 years ago.
In short, newly-built homes use the most modern methods during construction. This reduces risks. They are stronger and more stable. They can handle more wind and rain. Older homes used less modern methods of construction. Sometimes, the homeowner does not know which methods of construction applied.
An home insurance agent might consider age as a factor in determining the home’s risk level. Homes built over 30 to 40 years ago tend to use less desirable building methods. However, your agent can pinpoint more information. He or she knows the age of the home. Using this, along with building methods in your area at the time, the agent can spot areas of concern. This includes the structural integrity of the home.
For example, a home built in your area 50 years ago may have structural issues. This may be due to the methods used or even the material used in the foundation. This does not mean your home is unsafe. It means your agent needs to have the proper coverage on the home.
Historic Homes Cost More, Too
Some homes have historic value. Homes over 100 years old tend to be very valuable to an area. Replacing them is difficult to do.
If you have a home in an area where renovations must meet specific historic guidelines, this might raise insurance costs. If a fire were to occur, the cost to rebuild may be higher in these homes. Insurance companies must accommodate for this as they plan to protect your home.
Age is one factor in determining home insurance costs. Sometimes, it is not a big indicator of cost. Historic homes, though, typically will cost significantly more than average properties.
Contact an agent from Jean Deese Agency today to learn more about what else is impacting how much you pay for insurance.