Best Homeowners Insurance for Older Homes in 2024 (Top 10 Companies)

Discover the top pick for the best homeowners insurance for older homes, featuring Travelers, USAA, and Allstate with competitive rates starting at $57 per month.

Delve into their tailored coverage options designed specifically for older homes, ensuring comprehensive protection and peace of mind. Explore why these companies stand out as the best choices for homeowners seeking reliable and affordable insurance for their cherished properties.

Finding affordable premiums for home insurance is easy with our free quote comparison tool. Just enter your ZIP code above to find cheap coverage for your home.

#4 – State Farm: Best for Personalized Service

Pros

• Personalized Service: State Farm is known for its personalized customer service, offering tailored solutions to meet individual needs.
• Multi-Policy Discount: Provides a substantial 17% discount for customers bundling multiple policies.
• Safe Driver Discount: State Farm insurance review & ratings offers a significant 30% discount for safe drivers, promoting responsible driving habits.
• Financial Stability: State Farm maintains strong financial stability, ensuring reliability and security for its customers.
• Extensive Agent Network: With a vast network of agents, State Farm offers accessibility and convenience for its customers.

Cons

• Higher Premiums: While offering personalized service, State Farm’s premiums may be relatively higher for some customers.
• Limited Coverage Options: State Farm may not offer as diverse coverage options compared to some competitors.

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#5 – Chubb: Best for Home Coverage

Pros

• Home Coverage Expertise: Chubb specializes in home coverage, offering tailored solutions to protect customers’ properties.
• Multi-Policy Discount: Provides a 10% discount for customers bundling multiple policies.
• Safe Driver Discount: Chubb Insurance review & ratings offers a 20% discount for safe drivers, incentivizing responsible behavior.
• Strong Financial Standing: Chubb maintains a strong financial standing, ensuring stability and reliability.
• Customized Policies: Chubb offers customized policies to meet the unique needs of its customers.

Cons

• Limited Discount Options: Offers fewer discount options compared to some competitors.
• Premium Pricing: While providing quality coverage, Chubb’s premiums might be relatively higher for some customers.

#6 – Liberty Mutual: Best for Comprehensive Coverage

Pros

• Comprehensive Coverage: Liberty Mutual offers comprehensive coverage options to protect against various risks and liabilities.
• Multi-Policy Discount: Provides a 10% discount for customers bundling multiple policies.
• Safe Driver Discount: Offers a 20% discount for safe drivers, promoting safe driving habits.
• Accessibility: Liberty Mutual offers easy accessibility through its user-friendly online platforms and mobile app.
• Strong Financial Stability: Liberty Mutual maintains strong financial stability, ensuring reliability and security for its customers.

Cons

• Limited Discount Options: Offers fewer discount options compared to some competitors.
• Customer Service: Some customers may experience challenges with customer service responsiveness and efficiency.

#10 – Progressive: Best for Technology Integration

Pros

• Technology Integration: Progressive leads the industry with a strong focus on technology integration, offering innovative tools and platforms for a seamless customer experience.
• Safe Driver Discount: Provides a significant 31% discount for safe drivers, encouraging and rewarding responsible driving behavior.
• Multi-Policy Discount: Offers a 10% discount for customers bundling multiple policies, helping them save on insurance costs.
• Customization Options: Progressive provides a variety of customizable policy options, allowing customers to tailor their coverage to their specific needs.
• Claims Process: Progressive insurance review & ratings offers a streamlined and efficient claims process, utilizing technology to expedite claims and improve customer satisfaction.

Cons

• Premium Pricing: Progressive’s premiums may be relatively higher for some customers compared to other insurers.
• Limited Personalized Service: Despite its technological advancements, some customers may prefer more personalized service, which could be lacking with Progressive’s online-centric approach.

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Challenges of Insuring Older Homes

Many people love the quaint architectural details that come with older homes. Stained glass windows, wide hardwood floorboards, and other period touches lend a certain something you just can’t find in modern homes. Not to mention the high-quality building materials and craftsmanship that went into making these built to last, older homes.

Unfortunately, it’s the same details that make older homes so desirable that can also make it incredibly difficult to find an insurance policy.

Some insurance companies refuse to offer policies for homes that are older than 100 years and limit full coverage on homes built before the 1940s.

Insurance policies are designed to cover the amount that it would cost to rebuild the home from the ground up in the event of a total loss. In a lot of cases with recent homes, the cost of the necessary materials is close to the market value of the home. Sometimes, the replacement cost is significantly less than the market value. When it comes to older homes with period details, though, the replacement cost is much higher.

It ultimately boils down to the dollars and cents of repair costs; accidents are going to happen, and insurance providers do not want to be left on the hook with what they deem a riskier investment — your older home. In the sections that follow, we will review statistics on the average age of America’s housing stock as well as how old is too old for insurance providers when it comes to your home.

The Hidden Costs of Repairs to Older Homes

Replacing windows in newer homes is easier and cheaper, but stained glass requires artisans. Brian So of Brian So Insurance says homes over 25 years old need updates to roof, electrical, plumbing, and heating.

Asphalt roofs last 25 years, concrete tiles 50. Homes from 1900-1945 can still get traditional insurance with add-ons. To know more about this read on our “Who regulates homeowner insurance”

Historic Home Renovations & Repairs

Most older homes built before the 1900s have some historical quirks but have been updated and successfully brought up to code. That means new electrical with the possible addition of a central HVAC unit. The more modern the updates, the cheaper the cost for potential repairs, thus the more likely a provider’s policy can afford the coverage when damaged.

According to Realtor.com, the National Register of Historic Places found in 1916 that renovations or restorations on historic or older homes generally cost 5.6 percent more in expenses than newer, similar-size homes in the same ZIP code. To give you an idea of the cost difference, the table below from HomeAdvisor shows estimates about how much you would pay to renovate a modern home.

Any homes built before 1900 run the risk of having period-specific features in the architecture that require unique building materials no longer in production; this poses an expensive problem when it comes to repairs.

Additionally, many materials in older homes simply aren’t made the same way. The wood used for hardwood floors, for example, is cut into thinner planks, and walls are plywood or sheetrock rather than lath and plaster. Smaller fixtures like light switches and door handles are also more expensive.

Pre-1900 homes are also more prone to damage due to out-of-date systems, such as an older electrical system that could lead to fire or a decrepit roof that leaks and results in water damage.

On the interior, you also have to consider drywall versus plaster, plaster being what is in most older homes. Drywall on an average-sized home can run around $4,800 while the plaster job will once again cost more, at about $6,000. Some owners of historic homes spend $300,000–$1.75 million on renovating a home between 4,000–7,000 square feet.

The main takeaway is that older homes cost more when it comes to repairs, both in materials and installation, and most standard homeowners policies do not take these additional expenses into account.

The best way to find out if you are fully covered under your homeowners policy is to talk to your agent, find out your maximum coverage for replacement cost, and contact an insurance appraisal company that specializes in historic structures. Only then will you be able to know if the worth of your home matches the amount of coverage offered through your policy.

Historic vs Old Homes (The Difference)

How old are we talking when it comes to the historic designation of a property? We are talking pre-World War II when discussing older homes, but as for running the risk or advantage of being designated historic, those are the homes that were built around the turn of the 20th century.

As you will see, designated historic homes or landmarks have their own set of disadvantages when it comes to finding an insurance provider willing to offer full-coverage policies.

Aside from unique features that require period-specific building materials, older buildings can end up being registered as historic landmarks and thus will be required to follow historic preservation guidelines when it comes to repairs.

That means these homes have to be rebuilt to certain specifications that match the original construction.

How old are most homes in the U.S.?

The aging housing stock in the U.S. is gradually narrowing aspiring homeowner’s options. Almost half of the nation’s housing stock was built before 1970. To give you a better idea of the median age of homes in the U.S., both older and historically designated, we have provided a table using data from the U.S. Census Bureau to show the number of homes based by the year they were built.

In the table below, you can see just how your state fares when it comes to the average age of housing stock.

In the Northeast, homes are older, particularly in New York, Massachusetts, and Rhode Island, averaging from 53 to 57 years. Conversely, the South has newer homes, with some states below the national average of 37 years. Nevada, Georgia, and Arizona have younger owner-occupied homes, averaging around 21 to 25 years old.

However, if you do not have the good fortune of living in the Southeastern region of the U.S., insuring an older home will become more and more of a problem for you as a homeowner.

Coverage Options For Older Homes

Due to the high cost of replacement, many insurance companies simply won’t offer coverage for this type of home. Those who do often require the homeowner to pay significantly higher premiums. For instance, a policy on a newer home usually costs around $500, but a policy for a home that’s 100 years old or more could easily come with a premium that’s $1,000–$3,000.

If you’re thinking about purchasing an older home, it’s a good idea to put some feelers out about the cost of insurance before you put in an offer. Farmers Insurance, Chubb, Fireman’s Fund, and a few other insurance companies specialize in this type of insurance.

However, a typical insurance policy may be suitable for an older farmhouse home or if historically accurate renovations aren’t a concern.

In general, it doesn’t hurt to shop around. A local independent insurance broker may be best suited to helping you find a policy that matches your unique needs.

Insurance When Your Home Has a Historic Designation

If your home has a historic designation can be a bit of a double-edged sword. On the one hand, although aged, many historic homes were built with solid materials meant to last. However, a historic designation also means you will have to replace those items with period-specific materials.

Underinsuring is probably the biggest mistake homeowners make when insuring an older home, especially when it’s their first home.

Providers base standard rates and coverage on replacement costs and materials from the modern age.

When you sign up for insurance, you may not realize the company would try to use cheaper materials to replace the walls, floors, or basic structure. You may not even realize the materials used to build your older home are out of the ordinary based on today’s standards. It’s only when the unthinkable happens that you realize you’re going to lose those small details you love about your home.

If you cherish your older home, consult an insurance agent who specializes in such properties. They can identify the unique materials used and tailor a policy accordingly. Many insurers unfamiliar with historic homes may decline coverage.

The field of potential insurance providers for older homes is narrow due to the bureaucracy involved with historical societies and to arguments with homeowners seeking compensation for material costs insurance providers did not take into account.

However, those more costly repairs will tend to last longer. Say you repaired some of the floorboards that had been in place for over 100 years; replacing the wood with original material should give you a floor that will last another 100 years.

Also, these more expensive building materials should realistically increase the value of your home if you ever do decide to sell. An older home is best viewed as a long-term investment.

How the National Historic Preservation Act Affects Insurance

We have talked at length about the prohibitive costs when purchasing and insuring a historic home, but what about the benefits?

Historic and older buildings preserve the history of our nation while placing an emphasis on community building and green building practices. The advocates in the video above make some strong cases for purchasing an older home, but we’d also like to remind you that these homes are long term investments.

These historic renovations take more time and more money than your traditional home. The payout in the end is probably worth it but only if you plan to stick around for close to eight or 10 years.

If Your Home Has National Register & Landmark Status

There are a couple of tax breaks and credits available for protected historic properties including the historic preservation easement tax break and the tax credit for rehabilitation work.

A historic preservation easement is essentially a legal agreement that protects the historic home and provides the homeowner with an income tax deduction.

The rehabilitation tax credit is offered through the Federal Historic Preservation Tax Incentives Program. A 20 percent credit is extended for any historic property operating as a business. This generally pertains to industrial, commercial, and rental housing.

How can you save money on insurance for an older home?

Standard homeowners policies will generally only cover the full amount of an older or historic home if your premiums are drastically higher than usual. That means instead of the usual $500 a month, you may be shelling out $1,000 or more.

This is a determent for most homeowners, but if your heart is already set on purchasing an older or historic home, there are still a handful of ways you can reduce your monthly rates.

Is your older home up to code?

Before buying an older home, you will want to know if the building is currently up to code or will need significant repairs to bring it up to code. The price of an older home is sometimes much cheaper than a new home, but this won’t matter if you have to spend money on numerous updates to safeguard your home for modern living.

Most insurance providers will not back you as far as coverage for an older home that does not meet modern building codes. After a 4-point home insurance inspection, these repairs and renovations will need to be completed before a provider will insure the property.

These repairs can include updating older plumbing or even rewiring the entire building, so make sure you factor the additional costs into your budget when considering taking on what could very well be a real money pit.

According to Brian, the founder of Brian So Insurance, the main repairs for older homes will involve electrical and plumbing, and these are tasks that your underwriter should pick up on. “The underwriter scrutinizes an older home a lot more than a newer one. Having the updates ensures a smooth process when trying to get home insurance.”

Brian mentioned that “With the electrical, the underwriter wants to know if the home has at least 100 Amp circuit breakers and copper wiring. Other types of wiring, representing a higher fire hazard. The plumbing should be copper and/or ABS plastic plumbing. Other materials like polybutylene, lead, and galvanized steel do not have as long a lifespan and can cause leakage over time.”

The other thing homeowners may not realize is that an insurance company may cancel a policy after it learns there is something dangerous about the home — unless that homeowner is willing to make changes.

Outdated electrical systems, for instance, are a big problem. These older systems were not built to carry the type of usage that most modern families are accustomed to. It creates a fire hazard that, if fixed, should significantly reduce your monthly rates.

Deductible and Rider Options for Older Homes

Another option might be to increase the deductible. In a traditional policy, your deductible might only be $500 or $1,000. Increasing your deductible to $10,000, though, will decrease your premium. Not all insurance policies offer this option, and you’ll be on the hook for fixing small problems, but you’ll be covered if you lose your home.

One of the biggest issues for homeowners and insurance providers with historic homes is replacing unique features with original materials.

Older homes will have less manufactured features having used materials that were initially made to last. These materials, such as a solid wood door rather than a hollow one, would be more costly to replace.

Also, if your home has any unique historic features like hand-blown stained glass, your rates may be able to be lowered if you take out a separate policy for individual items that would be most costly. In these cases, you want to look into taking out a separate rider on your policy to cover for these unique features

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Tips for Avoiding Insurance Mistakes With Historic & Older Homes

The key to insuring a home is finding the right policy. While older homes pose more challenges than newer ones, it’s not impossible. Homeowners must balance their love for historic features with the cost of insurance. Fortunately, insurance agents can help navigate these challenges.

Turn to a Broker you can trust. Since 2003, the National Trust Insurance Services, LLC (NTIS) has helped individuals with securing the proper amounts of insurance coverage for older and historic homes. Many policies for older homes have serious gaps that will leave the policyholder footing the remainder of the bill. This is a frustrating situation especially considering most homeowners assume everything would be covered.

NTIS works to alleviate this frustration and ensures upfront that you will have the necessary coverage if damage occurs to your historic or simply older home.

Your provider’s responsibility is to cover the costs of damage or loss as stipulated in your policy, not to inform you of potential lapses in your home coverage. Trust us when we tell you there’s no wiggle room for negotiating payment on an uncovered claim, especially if your only defense is “I didn’t know.”

Would you consider living in a 100-year-old home?

Either way, we hope you never find yourself having to use the I-didn’t-know excuse when it comes to home insurance. At the least, you should be covered when it comes to troubleshooting insurance for older and historic homes.

If you’d like to take that informed opinion one step further, check out our free online quote option below. Find out more about what it would cost you to insure an old or historic home with a detailed quote. Just type in your ZIP code and we will guide you through the process. It’s that easy.

Case Studies: Best Homeowners Insurance for Older Homes

These fictional case studies illustrate how top homeowners insurance companies can address the unique needs of older homes. Older properties often come with distinctive architectural features, historical significance, and potential challenges such as outdated systems and materials. Each scenario highlights how specialized coverage options can protect and preserve the historical and architectural integrity of these cherished properties.

Case Study #1 – The Johnson Family’s Heritage Home: The Johnson family owns a beautiful 1920s colonial house in Massachusetts. With its age and unique architecture, the home requires specialized coverage to address potential issues such as outdated wiring and plumbing. After researching various insurance providers, they chose Travelers due to its tailored coverage options for older homes and competitive rates.

Case Study #2 – The Smiths’ Victorian Treasure: The Smiths are the proud owners of a Victorian-style home built in 1895, located in San Francisco. The historic nature of their home presents unique challenges, including the preservation of intricate woodwork and period-specific details. The Smiths selected State Farm for their homeowners insurance because of its extensive experience with historic properties and its excellent customer service.

Case Study #3 – The O’Neills Farmhouse in Rural Ohio: The O’Neills live in a farmhouse that has been in their family for generations, dating back to 1903. Situated in rural Ohio, their home is vulnerable to severe weather and requires a policy that addresses both its age and location. After comparing several insurers, they opted for American Family Insurance due to its flexible coverage options and strong reputation in rural areas.

Case study #4 – The Garcia’s Craftsman Bungalow in Portland: The Garcia Family resides in a charming Craftsman Bungalow built in 1915, located in the heart of Portland, Oregon. Their home, known for it’s unique handcrafted details and vintage fixtures, requires an insurance policy that not only covers standard risks but also appreciates the historical value of the property. The Garcia’s chose Nationwide for their Homeowners insurance because of it’s comprehensive coverage options and focus on preserving historical homes.

The Importance of Specialized Home Insurance

In conclusion, finding the right homeowners insurance for older homes is crucial for preserving their unique features and protecting against specific challenges. Travelers, State Farm, American Family Insurance, and Nationwide offer tailored coverage options suited to the needs of historical properties like those owned by the Johnsons, Smiths, O’Neills, and Garcias. With the right insurance, these cherished homes can be safeguarded for generations to come.

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