Older homes exude charm and character, but they often come with higher insurance costs. If you own a historic or aging property built before 1980, you could be paying 20-50% more for coverage than owners of newer homes. This comprehensive guide reveals how to find affordable insurance for older homes while maintaining proper protection.
Why Older Homes Cost More to Insure
Insurance companies view pre-1980 homes as higher risk due to:
- Outdated Electrical Systems (knob-and-tube wiring increases fire risk)
- Aging Plumbing (galvanized pipes prone to leaks/breaks)
- Older Roofs (materials past their lifespan)
- Construction Materials (plaster vs. drywall repair costs)
- Building Code Compliance (renovation requirements after claims)
Average Annual Premiums by Home Age:
| Home Age | Average Cost | % More Than New Build |
|---|---|---|
| 0-20 years | $1,200 | Baseline |
| 20-50 years | $1,500 | 25% more |
| 50-100 years | $1,800 | 50% more |
| 100+ years | $2,200+ | 80%+ more |
5 Best Insurance Companies for Older Homes
After analyzing premiums, coverage options, and customer satisfaction, these insurers offer the best combination of affordability and specialized coverage for aging properties:
1. State Farm: Best for Historic Homes
- Why they’re great:
- Special HO-8 policies for historic homes
- Local agents understand preservation requirements
- Offers functional replacement cost coverage
- Sample quote: $1,650/year for 1920s Craftsman
- Best for: Designated historic properties
2. Liberty Mutual: Best for Updated Older Homes
- Why they’re great:
- Premium credits for recent upgrades
- “Home Protector Plus” covers code upgrades
- 10% discount for homes with updated wiring/plumbing
- Sample quote: $1,450/year for 1950s ranch with updates
- Best for: Mid-century homes with some renovations
3. Foremost: Best for High-Risk Older Homes
- Why they’re great:
- Specializes in hard-to-insure properties
- Offers actual cash value coverage for unrestored homes
- Flexible underwriting for unique situations
- Sample quote: $2,100/year for unrenovated Victorian
- Best for: Homes needing major repairs
4. American Modern: Best for Vintage Cottages
- Why they’re great:
- Competitive rates for small older homes
- Special programs for seasonal/vacation properties
- Covers antique building materials
- Sample quote: $1,300/year for 1930s beach cottage
- Best for: Small historic homes under 1,500 sq ft
5. Nationwide: Best for Bundling
- Why they’re great:
- “Brand New Belongings” coverage replaces old items with new
- 20% bundling discount helps offset higher premiums
- Good claims service for older home repairs
- Sample quote: $1,750/year for 1910 Colonial (bundled)
- Best for: Owners willing to bundle auto + home
7 Strategies to Slash Your Premiums
1. Upgrade High-Risk Systems (Save 15-30%)
- Replace knob-and-tube wiring (3,000−3,000−10,000 investment)
- Update plumbing (PEX or copper)
- Install modern HVAC
- Typical premium reduction: 250−250−600/year
2. Choose Specialized Older Home Policies
- HO-8 policies: Designed for historic homes (lower premiums but actual cash value)
- Functional replacement cost: Pays to rebuild with modern materials
- Savings vs. standard HO-3: 10-25%
3. Increase Your Deductible
- Raising from 500→500→2,500 can save 30%
- Best for: Homes with few claims history
- Emergency fund tip: Set aside deductible amount
4. Pursue Historic Designations
- Local/National Register status may qualify you for:
- Tax credits (10-20% of renovation costs)
- Special insurance programs
- Example savings: $400/year in MA through state program
5. Bundle Policies Strategically
- Combine home + auto + umbrella
- Best bundling deals: State Farm, Allstate, Nationwide
- Potential savings: 200−200−500/year
6. Install Protective Devices
- Central station alarm: 15-20% discount
- Water leak detection: 5-10% discount
- Storm shutters (in hurricane zones): 10-15% discount
7. Pay Annually Instead of Monthly
- Avoid 3-5% installment fees
- *Savings on 2,000policy:∗2,000policy:∗60-$100/year
Coverage Considerations for Older Homes
Essential Protections
- Ordinance/Law Coverage
- Pays to bring home up to code during repairs
- Recommended limit: 25-50% of dwelling coverage
- Service Line Coverage
- Protects aging water/sewer lines
- Typical cost: 50−50−150/year
- Specialty Materials Rider
- Covers custom plaster, hardwood, stained glass
- Important for: Pre-1940s homes
Coverage to Reconsider
- Identity theft protection (less relevant)
- Earthquake coverage (unless in high-risk zone)
- High personal property limits (unless you have antiques)
State-Specific Older Home Programs
Several states offer special insurance options:
- California
- FAIR Plan for hard-to-insure properties
- Historic Homeowner Discount Program
- Florida
- My Safe Florida Home grants for upgrades
- Citizens Property Insurance for high-risk homes
- Massachusetts
- Historic Homeowner Tax Credit
- Special HO-8 policies through local carriers
- Texas
- Texas FAIR Plan Association
- Hail-resistant roof discounts
Red Flags That Inflate Premiums
These features can dramatically increase your costs:
- Flat roofs (50-100% more)
- Balloon framing (20-40% more)
- Coal/oil heating systems (15-30% more)
- Unreinforced masonry (earthquake risk)
- Lead paint presence (10-20% more)
Case Study: Saving on a 1920s Bungalow
Before Optimization:
- Location: Portland, OR
- Home value: $350,000
- Annual premium: $2,400
- Issues: Original wiring, old roof
After Improvements:
- Rewired entire home (-18%)
- Installed security system (-12%)
- Switched to HO-8 policy (-22%)
- Bundled with auto (-20%)
New annual premium: 1,380∗∗Totalsavings:∗∗1,380∗∗Totalsavings:∗∗1,020/year
Final Checklist for Older Home Insurance
Before purchasing:
☐ Verified rebuild cost (not market value)
☐ Compared HO-3 vs. HO-8 policies
☐ Checked for historic designation benefits
☐ Asked about ordinance/law coverage
☐ Inquired about system upgrade discounts
☐ Confirmed materials coverage (plaster, hardwood, etc.)
The Bottom Line
While older homes typically cost more to insure, strategic choices can lead to significant savings. The key is balancing adequate protection with cost-saving measures tailored to your home’s unique characteristics.
Best Overall Strategy:
- Get quotes from at least 3 older-home-friendly insurers
- Make targeted upgrades to high-risk systems
- Choose specialized coverage options
- Take advantage of all available discounts
By following this approach, owners of pre-1980 homes can often reduce premiums by 30-40% while maintaining proper protection for their historic treasures.
