Insuring A Historic Home

Insuring a house built in 1890 can be challenging due to changing building codes and pricier materials. Insurers consider homes built over 40 years ago as older properties, which are viewed as higher-risk due to wear and tear, obsolete construction materials, and outdated structural components. The cost of rebuilding an older home is typically higher than its market value, especially if rare or handmade materials are used. This results in higher insurance premiums, with rates depending on factors such as the age of the home, roofing, electrical wiring, and plumbing systems.

Rare or expensive construction materials

Insuring a house built in 1890 can be challenging due to changing building codes and pricier materials. Most owners of historic homes want to preserve the original features of their homes, which means using rare or expensive construction materials for repairs.

• Historic homes often feature unique materials that are not commonly used today, such as specialised building materials like slate, tile and metal roofing, stucco and half-timber exterior finishes, leaded glass windows and doors, and copper gutters and flashings. These materials can be costly to repair or replace and may require skilled craftspeople, increasing labour costs.
• The type of lumber, mouldings, and fixtures in historic homes is typically more expensive than modern alternatives. For example, solid brass fixtures and solid-wood doors are more costly to replace than their modern, mass-produced counterparts.
• Unique features, such as stained-glass windows, antique chandeliers, or marble mantelpieces, may require separate insurance policies or additional coverage as they would be classified as fine art. These items would need special coverage for breakage, repair, and replacement.
• Some insurance companies may be hesitant to insure historic homes, especially those with a historic designation. The age of the home, combined with the use of rare or expensive construction materials, can make finding insurance providers willing to take on the risk more challenging.
• In the event of a flood or fire, insurers will need to factor in the expense of replicating the unique features of the house using similar materials. This can significantly increase the cost of insurance premiums.
• An insurance inspection can be beneficial for homeowners to estimate future repair and replacement costs. This type of inspection focuses on the materials and condition of the house, including rare or expensive construction materials, to provide a more accurate assessment of insurance needs.

Cost of labour

The cost of labour is an important factor when it comes to insuring a house built in 1890. Older homes can be challenging to insure due to changing building codes and the higher cost of materials and labour. Here are some key points to consider:

• Rebuilding Cost: Insuring a historic home can be significantly more expensive than insuring a modern home of similar size. This is because it can cost up to 50% more to rebuild an older home, using historically accurate or similar materials. The type of lumber, mouldings, fixtures, and doors typically found in historic homes tends to be more costly.
• Labour Rates: The cost of labour is a significant component of insurance premiums. In recent years, labour rates have been affected by rising inflation and an increase in the number of claims due to extreme weather events. This has resulted in higher insurance premiums to cover the potential cost of repairs or reconstruction.
• Specialist Labour: Homes built in the 19th century often require skilled craftspeople with expertise in maintaining older properties. These specialists may charge higher rates due to their specialised knowledge and experience. For example, if your home has unique features like stained glass windows or antique chandeliers, you may need to insure them separately, similar to fine art.
• Updates and Renovations: Over time, many older homes have undergone updates to their wiring, heating, and plumbing systems. However, these renovations may not always meet current building codes, and some insurance companies may be hesitant to insure properties that don't comply with modern standards. Knob-and-tube wiring, commonly found in 19th-century homes, is often a reason for insurance companies to refuse coverage.
• Maintenance and Repairs: Older homes may require more frequent maintenance and repairs, which can impact the cost of labour. Issues like settling, rusted pipes, and outdated roofing can lead to additional expenses. It's important to stabilise the structure and address any necessary repairs with the help of experienced contractors and structural engineers.

When insuring a house built in 1890, it's crucial to consider the potential cost of labour for repairs, renovations, and rebuilding. The unique characteristics and construction methods of older homes can result in higher labour costs, which insurance providers will factor into their premiums.

Age of the roof

The age of the roof is a significant factor when it comes to insuring a house, especially one built in 1890. Here are some key considerations:

Roof Age and Insurance Coverage

The age of a roof plays a crucial role in determining insurance coverage. As a roof ages, insurance rates tend to increase or coverage decreases. A roof over 20 years old may face more significant changes in insurance policies, with some insurers refusing to renew policies without a professional roof inspection or roof replacement. Older roofs are considered higher-risk by insurance companies due to the potential for unforeseen issues, such as water damage, which can lead to deterioration and the need for costly replacements.

Roof Material and Insurance Costs

The roofing material is another essential factor in insurance costs. Different materials have varying lifespans and resistance to wear and tear, fire, and natural hazards like wind and hail. For example, metal roofs can last up to 50 years and are highly durable, while asphalt shingles have a lifespan of 20 to 30 years. Insurance companies may offer lower rates for roofs made of more durable materials, such as metal or slate, as they provide better protection against the elements and are less likely to require frequent repairs or replacements.

Maintaining Insurability

To maintain insurability and keep insurance rates low, routine roof inspections and maintenance are crucial. Homeowners should schedule regular inspections and address any issues promptly to ensure their roof remains in excellent condition. This proactive approach can also help prevent the need to file insurance claims after storms or other weather events. Additionally, keeping a record of inspection and maintenance activities, as well as documenting the roof's condition through photos, can be beneficial when dealing with insurance companies.

Historic Home Considerations

If the house built in 1890 is considered historic, there may be additional insurance considerations. Insuring a historic home can be more challenging due to changing building codes and the use of pricier materials. Historic homes often require repairs or replacements that adhere to specific standards, using materials that match the original construction. This can result in higher insurance premiums to cover the cost of replicating unique features or using specialised materials.

In summary, when insuring a house built in 1890, the age of the roof, the roofing material, and the overall condition of the roof will be critical factors in determining insurance coverage and costs. Routine maintenance, inspections, and being aware of the unique challenges posed by older or historic homes can help ensure adequate insurance coverage.

Electrical wiring

Knob-and-Tube Wiring

Knob-and-tube wiring is an older method of electrical wiring commonly used in homes dating back to the late 1800s through the 1940s or even up to the 1950s. It gets its name from the porcelain knobs that support the electrical wire and the tube insulators that cover the wire as it passes through studs and joists. While knob-and-tube wiring that is properly installed and maintained may not be inherently dangerous, it can pose challenges when insuring an older home.

Over time, knob-and-tube wiring can become unreliable and susceptible to fraying and deterioration. It also lacks a grounding wire to safely divert excess electricity. As heavy electrical loads stress these lines, they can heat up and ignite nearby insulation or other materials, increasing the risk of fire. For this reason, some insurance companies may deny coverage for homes with knob-and-tube wiring, while others may offer coverage at a higher premium.

Aluminum Wiring

Aluminum wiring was commonly used in homes built between the mid-1960s and the 1970s, and in some cases, up to the 1980s. While aluminum wiring can be safe when installed and maintained properly, it is considered a higher risk by insurance companies. Aluminum wiring is less durable than other materials, such as copper, and tends to age and deteriorate faster. It also expands and contracts, which can lead to loose connections, arcing, and electrical fires.

Insurance companies may deny coverage or charge higher premiums for homes with aluminum wiring, especially if it is in poor condition or has been improperly installed. It is important to have a licensed electrician inspect your home to assess the condition and type of wiring and make any necessary upgrades to ensure safety and compliance with insurance requirements.

Upgrading Electrical Wiring

When insuring an older home with outdated electrical wiring, you may be required to make upgrades to meet the insurance company's standards. This may involve replacing knob-and-tube or aluminum wiring with modern wiring that meets current safety codes. It is important to consult with a licensed electrician who has experience working with older homes to ensure that any upgrades are done properly and safely.

Insurance Considerations

When insuring a house built in 1890, it is important to disclose the type of electrical wiring to your insurance provider. Failure to do so could result in your insurance being voided in the event of a claim. Be sure to shop around and get quotes from multiple insurance companies, as some may be more willing to insure older homes with outdated wiring than others.

Additionally, consider getting an electrical inspection by a qualified electrician to identify any issues and make any necessary repairs or upgrades. This can help demonstrate to insurance providers that your home is well-maintained and reduce the likelihood of future problems.

Plumbing systems

In the 1890s, most houses in New York City had indoor plumbing, thanks to the construction of the Croton Aqueduct system in 1842, which allowed more than just the wealthy to have running water. However, not all houses would have had modern plumbing systems. Outbreaks of cholera in the 1830s and 1840s, as well as the Great Fire of 1835, spurred the creation of new clean water systems. The first patent for a flush lavatory dates to 1775, but indoor toilets didn't become the norm in New York until the late 1800s.

The discovery of sewer vents in 1874 solved the problem of sewer gases entering homes, and the Tenement Act of 1901 required the inclusion of at least one water closet in each unit. By 1902, most of New York City had sewage service, with 6,600 miles of pipes and mains.

Houses built in the 1890s may have used galvanised metal water pipes, which can suffer from reduced water flow over time. Replacing these with copper pipes can be disruptive and expensive.

When insuring a house of this age, it's important to consider that it can cost as much as 50% more to rebuild a historic home compared to a modern one. Not all insurance providers will be willing to insure a historic home, and premiums are typically about 20% higher than for a standard home.

Frequently asked questions