Owning an older home can come with beautiful architecture, larger rooms, mature landscaping, and character that newer properties often cannot match. But when it comes to homeowners insurance, an older property can also present additional challenges.
Aging roofs, outdated electrical wiring, older plumbing, original construction materials, historic features, and higher rebuilding costs can all affect whether an insurer will cover the property and how much the policy costs. The National Association of Insurance Commissioners (NAIC) notes that the age of a home can affect eligibility for preferred insurance programs, and insurers may require older homes to have updated heating, plumbing, wiring, and roofing.
So, what is the best homeowners insurance for older homes?
There isn’t one insurer or policy that is best for every older house. The right choice depends on the home’s age, condition, location, replacement cost, roof and plumbing systems, electrical system, historic status, and the amount and type of coverage available.
For many older homeowners, the most important thing is finding a policy that provides appropriate replacement-cost protection, ordinance or law coverage, protection for older systems, and enough coverage to rebuild the property properly after a covered loss.
Why Is Homeowners Insurance More Difficult for Older Homes?
Insurance companies generally consider several factors when deciding how much risk a property presents.
Older homes can have systems that were installed decades ago and may be more difficult or expensive to repair. An insurer may therefore look closely at:
- The age and condition of the roof
- Electrical wiring
- Plumbing
- Heating and cooling systems
- Foundation
- Exterior materials
- Previous insurance claims
- Renovations and upgrades
- Location and local disaster risks
- Estimated cost to rebuild the home
The NAIC specifically identifies the age of the house, type of construction, location, amount of coverage, deductible, and available discounts as factors that can affect homeowners insurance rates.
Some insurers may also require an inspection before offering coverage on an older property.
That doesn’t necessarily mean an older home cannot be insured. It means homeowners may need to shop more carefully and provide more information about the property’s condition.
What Are the Best Insurance Options for Older Homes?
Instead of looking only for the cheapest premium, homeowners should compare insurers based on the coverage they provide for older properties.
Several types of insurers and policies may be worth considering.
Standard HO-3 Homeowners Insurance
An HO-3 policy is one of the most common forms of homeowners insurance.
If an older home has been properly maintained and its major systems have been updated, it may still qualify for a standard homeowners policy.
A standard policy can provide coverage for the dwelling, personal belongings, liability, and additional living expenses, depending on the policy terms.
For an older house that has modernized plumbing, electrical systems, roofing, and other major components, a standard HO-3 policy may be an option worth comparing.
However, homeowners should carefully examine how the insurer handles aging components and replacement costs.
HO-8 Insurance for Older Homes
An HO-8 policy is specifically designed for certain older or historic homes that may not qualify for standard homeowners insurance.
According to current insurance guidance, HO-8 policies are generally used when an older home’s replacement cost is significantly higher than its market value or when the property doesn’t meet standard underwriting requirements.
This can make HO-8 coverage an important option for owners of older properties.
However, HO-8 policies can provide more limited protection than a standard HO-3 policy, so homeowners should not automatically assume that HO-8 is better simply because the house is old.
The important question is whether the policy provides the protection needed for the actual property.
Replacement Cost vs. Actual Cash Value
One of the most important decisions when insuring an older home is understanding the difference between replacement cost and actual cash value.
Replacement Cost
Replacement-cost coverage generally pays the cost to repair or replace damaged property with materials of similar kind and quality, subject to the policy’s terms and limits.
The NAIC explains that replacement cost does not deduct depreciation when determining the covered repair or replacement amount.
This can be particularly important for older homes because the cost of rebuilding may be considerably different from the home’s market value.
Actual Cash Value
Actual cash value takes depreciation into consideration.
For example, if an older roof is damaged, an ACV settlement may account for the roof’s age and remaining useful life when calculating the claim payment.
That could leave the homeowner with a larger out-of-pocket expense when replacing older materials.
For this reason, homeowners should understand exactly how their policy treats the roof, siding, flooring, electrical components, plumbing, and other aging features.
Extended or Guaranteed Replacement Cost
Another important coverage to investigate is extended or guaranteed replacement cost.
The Insurance Information Institute explains that extended replacement cost can provide an amount above the dwelling limit, commonly around 20% to 25% in policies where this coverage is available. Guaranteed replacement cost can provide even broader protection, potentially covering the cost to rebuild beyond the stated limit, subject to the policy’s terms.
This can matter after a widespread disaster.
For example, if a major storm or wildfire causes thousands of homes to require rebuilding at the same time, construction materials and labor can become more expensive.
However, these options are not available from every insurer or in every state, and guaranteed replacement cost may be unavailable for some older homes.
Ordinance or Law Coverage Is Especially Important
Older homes can also face a problem when local building codes have changed since the property was originally constructed.
Imagine an older house suffers major damage and local regulations now require upgraded electrical wiring, plumbing, insulation, roofing, or other components during reconstruction.
A basic policy may not automatically provide enough coverage for all of those additional code-related costs.
That’s where ordinance or law coverage can become important.
The NAIC and Insurance Information Institute both identify ordinance or law coverage as an additional protection homeowners can consider for code-related rebuilding expenses.
For an older home, ask specifically:
If my house has to be rebuilt after a covered loss, will the policy pay for upgrades required by current building codes?
The answer can make a significant difference during a major claim.
What Should Older Homeowners Look for in an Insurance Policy?
When comparing policies, don’t focus only on the monthly or annual premium.
Look at the actual protection.
1. Replacement-Cost Coverage
Check whether the dwelling is insured based on replacement cost or actual cash value.
For older homes, the distinction can be particularly important.
2. Roof Coverage
Ask how the insurer handles an older roof.
Some companies may impose special limitations or use actual cash value for older roofing materials.
3. Plumbing Coverage
Older galvanized, cast-iron, or other aging plumbing systems may receive additional scrutiny.
Find out whether the insurer requires replacement or repairs before providing certain coverage.
4. Electrical Coverage
Older wiring can create underwriting concerns.
If the property still has outdated electrical components, ask what the insurer requires before issuing or renewing the policy.
5. Ordinance or Law Coverage
This can help with certain additional costs caused by current building-code requirements after a covered loss.
6. Water Damage Coverage
Water damage can be particularly costly in older homes because aging pipes and plumbing systems can fail unexpectedly.
Ask exactly what types of sudden and accidental water damage are covered and whether certain plumbing-related losses are excluded.
7. Additional Living Expenses
If a covered loss makes the home temporarily unlivable, additional living expense coverage may help pay eligible costs such as temporary accommodation and other qualifying expenses.
Check the policy limit and conditions.
8. Personal Property Coverage
Older homes may contain antiques, collectibles, artwork, inherited furniture, or other valuables.
Standard personal-property limits may not be sufficient for particularly valuable items, so additional endorsements may be necessary.
Are Older Homes More Expensive to Insure?
They can be.
The reason isn’t simply the home’s age. Insurance companies consider the cost and likelihood of potential losses.
An older property may have an aging roof, outdated electrical system, older plumbing, unusual construction materials, or architectural features that are expensive to reproduce.
Current insurance research also shows a substantial difference in average premiums between older and newer homes, although the exact difference varies significantly depending on the coverage amount, location, insurer, and property characteristics.
Two houses of exactly the same age can therefore have very different insurance premiums.
One may have a recently replaced roof, modern electrical system and updated plumbing, while the other may still have original systems.
How to Make an Older Home Easier to Insure
One of the best ways to improve your options is to document and maintain the property.
Replace an Aging Roof
A newer roof can make a property easier for some insurers to underwrite.
Keep invoices, permits and inspection reports showing when the roof was replaced.
Update Electrical Systems
If the house contains outdated electrical wiring or equipment, ask a qualified electrician to inspect it.
Keep documentation of completed upgrades.
Upgrade Plumbing
Replacing old plumbing can reduce the risk of leaks and water damage and may improve your insurance options.
Install Safety Equipment
Depending on the insurer, security systems, smoke detectors, fire alarms, water-leak detection devices, automatic shut-off systems and other protective equipment may qualify for discounts or improve risk management.
Maintain the Property
Regular maintenance can help prevent small problems from turning into expensive claims.
Keep records of roof inspections, plumbing repairs, electrical work, heating-system maintenance and other major improvements.
What If Your Home Is Historic?
A historic property can require even more specialized consideration.
Historic homes may contain original plaster, decorative woodwork, slate roofs, antique flooring, specialized masonry, custom windows, or other materials that aren’t easily replaced with modern equivalents.
Rebuilding such a home after a major loss may therefore require specialized contractors and materials.
Some insurers offer specialized historic-home coverage designed to address these characteristics. For example, Chubb describes coverage for historic properties that can help with rebuilding using like design, materials and workmanship, including certain historic architectural features.
If your property is officially designated as historic or sits within a historic district, ask the insurer whether the policy addresses preservation requirements.
Companies to Compare for Older Homes
There is no single insurer that is universally the best choice for every older property.
Insurance availability and pricing vary by state and property.
Current consumer and insurer information identifies companies and policy types that may be worth investigating, including American Family, USAA, Liberty Mutual, Progressive, Farmers, and insurers offering specialized historic-property coverage. USAA eligibility is limited to eligible military members, veterans and their families.
These names should be treated as companies to compare, not as a guarantee that they will offer the lowest price or the broadest coverage for your particular house.
The most suitable insurer may depend on whether your home is 40, 60, 80, or 100 years old; whether it has been renovated; its roof and plumbing condition; and where it is located.
How to Compare Homeowners Insurance for an Older Home
Get several quotes and give each insurer the same information.
Provide:
- Year the home was built
- Square footage
- Roof age
- Roof material
- Plumbing type and age
- Electrical system and age
- Heating and cooling systems
- Major renovations
- Foundation information
- Historic designation, if applicable
- Prior claims
- Estimated replacement cost
- Security and fire-protection systems
Then compare the policies based on coverage rather than price alone.
Create a simple comparison table showing:
| Coverage Feature | Insurer A | Insurer B | Insurer C |
|---|---|---|---|
| Dwelling coverage | |||
| Replacement cost | |||
| Roof coverage | |||
| Ordinance/law coverage | |||
| Water damage coverage | |||
| Personal property | |||
| Liability | |||
| Additional living expenses | |||
| Deductible | |||
| Annual premium |
This makes it easier to identify differences that aren’t obvious from the quoted premium.
What If No Standard Insurer Will Cover the Home?
Don’t assume you have no options.
Ask an independent insurance agent or broker about insurers that specialize in older, high-value or historic properties.
You may also need to make certain repairs or upgrades before a company will offer standard coverage.
In some circumstances, an HO-8 policy or specialized historic-home policy may be an alternative.
The important thing is to understand exactly what the policy covers before purchasing it.
How to Lower Insurance Costs on an Older Home
There are several potential ways to reduce premiums without simply reducing important coverage.
Consider:
- Increasing the deductible if you can comfortably afford it
- Bundling home and auto insurance where discounts are available
- Installing approved security systems
- Updating old electrical systems
- Replacing an aging roof
- Updating old plumbing
- Installing leak-detection equipment
- Maintaining smoke and fire alarms
- Comparing multiple insurers
- Reviewing your coverage every year
The NAIC notes that discounts may be available for measures such as bundling policies and installing certain security devices, although discounts vary by insurer.
Final Thoughts
The best homeowners insurance for an older home is not necessarily the company with the cheapest quote.
For an older property, the details of the policy can matter more than the headline premium.
Look carefully at replacement-cost coverage, roof treatment, plumbing and electrical exclusions, ordinance or law coverage, water-damage protection, liability limits, personal-property coverage, and additional living expenses.
If your property is historic or contains expensive original features, consider whether a specialized policy or endorsement is necessary to properly protect the home’s character and rebuilding costs.
Most importantly, compare several quotes using the same property information and read the policy’s exclusions and conditions before making a decision. Insurance requirements and availability vary by state and insurer, so a policy that works well for one older home may not be appropriate for another.
