Uniqueness of Historic Homes
Historic and antique architecture arouses special emotions and feelings in some of us. Most historic homes have seen many seasons, cold winters, or major storms and yet managed to keep their breathtaking look. Whether you chose a historic home because of style, story, or nostalgia, insurance coverage for such a place is a must.
Historic homes require unique insurance coverage. You need to know that historic home policies may cost more than standard home insurance policies. Sometimes, insurance companies won’t be willing to provide insurance coverage to your home.
Before buying a historic home, make sure it undergoes a thorough inspection.
Insurance providers will first examine the home in order to establish if something is in need of repair or complete replacement. If this is a need, the insurance provider will require the contractor conducting the work will use appropriate and possibly original materials so that the home maintains its historic character while complying with building codes.
However, finding those unique materials (ornate moldings, wide plank floor, etc. rough-cut lumber) or solving plumbing and electrical problems (dead outlets, flickering bulbs) can be truly challenging.
Cash-Value vs. Replacement-Value
Generally, homeowners have two choices: cash-value home insurance and replacement-value home insurance. Cash-value insurance covers only the market value of the home (what it would currently sell for), while replacement-value insurance covers the costs (up to certain limits) of rebuilding. Therefore, if you don’t plan to rebuild or renovate your place, cash-value will save you some money in premiums. However, if you do renovate, we recommend getting replacement value.
A historic home’s good bones has helped it stand on its strong foundation. Make sure your coverage protects those bones and your investment.
Thanks for reading!
Your friends at Farmers Mutual
749 Wilson Road, Newberry, SC 29108