There are several differences between a new home and an older one. Some of these differences include the building structure, the plumbing or heating systems, electrical system, etc. As expected, the structure and systems of older homes are usually less durable than those of newer homes. For this reason, insuring older homes usually costs more than insuring newer ones.
Below are some of the major determinants of your home insurance’s cost that may be affected by the age of your home.
Older homes are more prone to structural issues
As your home ages, wear and tear will begin to take its toll. This follows that the older a home is, the more likely it is to encounter issues, both structural and non-structural. For example, the water pipes in an old home may burst due to high pressure during freezing temperatures. Also, the roof may cave in or become damaged due to wear and tear.
Fixing older houses is more difficult
Homebuilding materials are continuously evolving. Because of this, the building materials used to construct older houses are often no longer readily available. Consequently, they are much harder to find and more expensive to purchase. In essence, the older your home is, the more difficult and expensive it is to repair or replace certain items in it.
The location of your home
The location of your home, whether new or old, also contributes to your home insurance cost. The reason for this is that the cost of building materials differs across the country. Also, some parts of the country are more prone to natural disasters, for example, some areas may be more prone to hurricanes and tornadoes than others. Newer homes are better at withstanding these forces of nature when compared to their older counterparts. As such, they cost less in insurance premiums.
Tip: Renovating your home or installing features that improve its structural integrity may help to lower your insurance cost. A good example is installing storm shutters for your windows.
According to a 2019 study, more people are looking to renovate their homes. The most commonly remodeled rooms in a house are the kitchen and bathroom. Compared to newer homes, renovating and remodeling older homes is more expensive. This is due to the older structures and systems that are present in these homes.
Tip: If you own an older home, you need to keep your insurer informed about the nature of your home and your renovation plans. While this might affect your rate, it will ensure that you properly account for the amount you’d have to spend and prevent you from being underinsured.
If your home is old, you will likely pay more in insurance premiums than people whose homes are newer. Luckily, there are specific steps you can take to reduce these prices, which involve taking active measures to protect the house and preserve its integrity. These measures include reinforcing the windows, replacing the roof, improving the electrical grounding system, etc.