There are several factors that can affect the rate you pay for homeowners insurance—current labor and materials costs, location, type of structure, etc.—but the age of your home plays a major factor as well.
Older homes don’t always meet modern building code standards. As a result, they cost more to insure. Updating your home to meet modern industry standards can not only make your home safer but can save you money on your home insurance policy.Compare homeowners insurance quotes from leading companies and save.
Owing to a multitude of potential problems, older homes are often more expensive to insure. A number of home insurance companies require a successful home inspection to be completed before a policy is offered. If a home inspection is unsuccessful, homeowners may be required to update their home’s heating, wiring, plumbing or roofing units before they can purchase coverage.
Here are some of the most common reasons older homes result in higher homeowners insurance rates:
For these reasons and more, older homes often do not qualify for preferred programs.
If you decide to renovate your home to meet current industry standards, you could see a drastic reduction in your homeowners insurance rate. Renovating your home will protect it against water, storm or electrical damage, making it less of a financial risk to insure. If renovations make a home eligible for preferred programs, the savings will begin rolling in.