Insurance for Your Historic Home

Have you seen a historic home for sale in downtown Savannah, Georgia, with irresistible artistry and antique architecture?  Buying it will be an excellent investment. As you make plans to seal the deal, do not overlook the insurance considerations of your historic home.

Insurance companies offer varying policies for historic and new homes. You may pay more to insure your antique home. Let us explore the reasons for this here: 

Tailored Policy

Insurance companies consider that your historic home may be damaged sooner than a new home. They often give you the option of covering the cash value or the replacement value. 

The cash value refers to the resale price of your home while the replacement value goes further to consider the cost of rebuilding the home if it is completely damaged. 

If you choose the replacement value, the policy will be more costly than that of a cash value. However, if you fail to take a replacement cover, then your insurer will not pay for the reconstruction of the home.

Non-Compliance with Building Codes

Historic homes were constructed before the building codes. If you need to rebuild the damaged home, you may need to make alterations to comply with these codes. 

The authorities may also need you to comply with some building regulations to modernize your fittings. With this in mind, the insurer will charge you a higher premium for your antique home to cover the increased cost of modern fittings.

Outdated Fittings

The plumbing and electrical fittings of a historic home are usually outdated. For instance, the water pipes are likely to be steel that rusts and leaks faster. This exposes the structures to water damage. Insurers consider this when calculating your historic home insurance policy rate.

Rare Construction Materials

When reconstructing your historic home, you may want to preserve some antique features. Some of the construction materials used in your antique homes may be unique and costly. In case you want to rebuild the home, you may have to invest more to get them. 

Moreover, since these unique features give the home an artistic architectural appeal, you may want to keep them. In this case, the insurer will charge you a higher replacement value.

Storm-Prone Structures

Your home may not be reinforced enough to withstand a storm. Development in architectural technology gives modern homes better reinforcements against storms than antique homes. This means the home has a higher risk of storm damage, and your insurance provider will use it to raise your rate.

Home Insurance Options in Savannah, Georgia

Your Historic Home Insurance Options in Savannah, Georgia

If your antique home is in Georgia, you have several policy options to consider. Have a look at them here:

  • HO-1 

This is the cheapest policy covering the least number of risks. It covers about 10 risks.

  • HO-2

This will cover both your home and belongings against 16 perils.

  • HO-3

Most historic homeowners choose this policy. It covers you against the most common dangers. However, it excludes disasters like earthquakes, nuclear accidents, and floods. It also does not cover war, power failure, faulty construction materials, and government actions like seizures. 

  • HO-6

If you own a condominium or you co-own a building, this is the best policy for you. It provides coverage for some structural parts of your building, personal property, and liability.

  • HO-8

With this policy, your replacement value exceeds the actual value of your property. The insurer determines the rate as the actual value of the home, which is the reimbursement minus the depreciation value.  

Even though your historic home in Savannah, Georgia, will be more costly to insure than a new home, you should not compromise on the insurance cover or fail to buy the home. You can lower your insurance cost with some simple practices.

Compare the rates offered by different and insurers and choose the most cost-effective. Sometimes you may benefit from special discounts if you use the same insurer for all your insurance policies. Avoid changing insurers when the policy expires so that you can benefit from discounts offered to long-term policyholders.

Safeguarding your home against disasters will help lower the insurance rate since you will get a better score during a historic home inspection. Besides, if you have improved your home security, your insurance inspection score will be better, earning you a lower insurance rate.

Bottom Line

Owning a historic home can be expensive to insure. Their age, antique architectural structures, and non-compliance to local building codes are some of the factors that insurers consider to give higher policy rates for historic homes. However, the insurance cost should not hinder you from the joy of owning your historic home.

You can choose from several policy options offered by historic home insurers in Savannah, Georgia. You can also lower your policy rates if you shop around, stick with one insurer, and make your historic home disaster-proof.