Introduction
Owning an older home comes with undeniable charm—original hardwood floors, vintage architectural details, and a sense of history. However, insuring these properties can be more expensive than modern homes due to outdated systems, unique materials, and higher repair costs.
The good news? You don’t have to overpay for coverage. With the right strategies, you can secure affordable, comprehensive insurance that protects your older home without draining your wallet.
In this guide, we’ll cover:
- Why Older Homes Cost More to Insure
- 5 Proven Ways to Save on Older Home Insurance
- Best Insurance Providers for Older Homes
- Common Mistakes to Avoid
- How to Get the Best Policy for Your Needs
By the end, you’ll have a clear action plan to lower your premiums while keeping your home fully protected.
1. Why Older Homes Cost More to Insure
Before diving into savings strategies, it’s important to understand why insurers charge more for older homes:
A. Higher Risk of Damage
- Outdated electrical wiring (e.g., knob-and-tube) increases fire risk.
- Aging plumbing (galvanized pipes) can lead to leaks and water damage.
- Weakened foundations or roofs may be more susceptible to storm damage.
B. Expensive Repairs & Replacements
- Custom woodwork, plaster walls, and antique fixtures cost more to restore.
- Building code upgrades may be required during repairs, adding expenses.
C. Limited Replacement Materials
- If original materials (e.g., heart pine flooring) are no longer available, insurers may need to cover costlier alternatives.
D. Location Risks
- Many older homes are in historic districts, which can mandate pricier restoration methods.
- Some are in urban areas with higher theft or vandalism risks.
Because of these factors, standard home insurance might not suffice—or could be overpriced. The next section reveals how to cut costs without sacrificing coverage.
2. 5 Proven Ways to Save on Older Home Insurance
#1: Upgrade Key Systems for Discounts
Insurers reward homes with modernized systems because they reduce risk. Consider:
✔ Replacing old wiring (especially knob-and-tube) with updated electrical systems.
✔ Upgrading plumbing (swap galvanized pipes for PEX or copper).
✔ Installing a new roof (impact-resistant materials may qualify for discounts).
✔ Adding security features (burglar alarms, smoke detectors, deadbolts).
Potential Savings: 5–20% off premiums.
#2: Choose a Higher Deductible
A higher deductible (the amount you pay out-of-pocket before insurance kicks in) lowers your premium.
- Example: Increasing your deductible from 500to500to1,500 could save 10–25% annually.
- Tip: Set aside savings to cover the deductible in case of a claim.
#3: Bundle Home & Auto Insurance
Most insurers offer a multi-policy discount (usually 10–20%) if you bundle home and auto coverage.
- Best providers for bundling: State Farm, Allstate, Farmers.
#4: Compare Quotes from Specialized Insurers
Not all insurers treat older homes the same. Some specialize in historic or vintage homes and offer better rates:
- Foremost Insurance (part of Farmers) – Tailored for older homes.
- Liberty Mutual – Offers discounts for safety upgrades.
- Chubb – High-end coverage for historic properties.
Tip: Work with an independent insurance agent who can compare multiple providers.
#5: Take Advantage of Historic Home Discounts
If your home is officially designated as historic, you may qualify for:
- Tax credits for preservation (indirectly lowering insurance costs).
- Grants for restoration work (e.g., through the National Trust for Historic Preservation).
- Specialized insurance programs (some states offer incentives).
3. Best Insurance Providers for Older Homes
| Provider | Best For | Potential Savings |
|---|---|---|
| State Farm | Bundling discounts | 10–20% off with auto bundle |
| Farmers/Foremost | Older home specialists | Custom policies for vintage homes |
| Liberty Mutual | Safety feature discounts | 5–15% for alarms, storm shutters |
| Chubb | High-value historic homes | Premium coverage with cash settlement options |
| USAA (military only) | Low-cost older home coverage | Competitive rates for veterans |
Pro Tip: Always read reviews on claims handling—some insurers are slower with older home repairs.
4. Common Mistakes to Avoid
Skipping Ordinance or Law Coverage
- Older homes often need code upgrades after damage. Without this add-on, you could pay thousands extra out of pocket.
Underinsuring Your Home
- Rebuilding an older home often costs more than its market value. Ensure your policy covers replacement cost, not just market value.
Ignoring Maintenance
- Insurers may deny claims if damage results from long-term neglect (e.g., unrepaired roof leaks).
Not Shopping Around Annually
- Loyalty doesn’t always pay. Compare quotes every 1–2 years to ensure you’re getting the best deal.
5. How to Get the Best Policy for Your Needs
Step 1: Assess Your Home’s Risks
- Get a home inspection to identify wiring, plumbing, or structural issues.
- Document original features (stained glass, hardwood floors) for proper coverage.
Step 2: Compare Multiple Quotes
- Use online tools (NerdWallet, Policygenius) or an independent agent.
- Ask about older home discounts.
Step 3: Customize Your Coverage
- Add “guaranteed replacement cost” if your home has unique materials.
- Consider water backup coverage (common in older homes).
Step 4: Review Annually
- Update your policy after renovations or safety upgrades.
Final Thoughts
Insuring an older home doesn’t have to be expensive. By upgrading key systems, comparing quotes, bundling policies, and taking advantage of historic home programs, you can save hundreds per year without compromising protection.
Quick Recap of Savings Strategies:
- Upgrade wiring, plumbing, and roofing.
- Opt for a higher deductible.
- Bundle home and auto insurance.
- Compare quotes from older-home-friendly insurers.
- Explore historic home grants/discounts.
Next Steps:
- Get a home inspection to identify risk areas.
- Request quotes from at least 3 providers.
- Ask about discounts for safety features or historic status.
With the right approach, you can enjoy your home’s vintage charm without overpaying for insurance.
