Homeowners insurance for historic homes

Key Takeaways

• Insuring a 100-year-old home is very different from getting coverage for a house under 40 years old.
• Insurance for historic homes typically costs more than standard homeowners policies.
• If it would cost more to rebuild your historic home than it's worth, consider an HO-8 policy made for older and historic properties.

Many people are drawn to historical homes because of the unique details and craftsmanship that can't be found in most modern houses. While others, may be more intrigued by the rich history and the stories behind these unique structures. With nearly 100,000 properties listed on the National Register of Historic Places, and at least one in almost every U.S. county, it's clear these homes hold a significant place in American heritage.

However, securing homeowners insurance for historic homes isn't always simple. The unique materials, strict preservation rules, and higher restoration costs can make a standard homeowners insurance policy fall short in the event of a loss. For this reason, it's important to take the time to understand the basics of insuring these unique properties so you can secure the best homeowners insurance for your historic home.

What qualifies as a historic home?

A historic home is typically a house that's at least 50 years old and that has special architectural, cultural, or historical significance. For example, the structure might have a unique design, special connection to a notable person or event, or located in a historically significant neighborhood.

A house is officially considered historic when it's listed on a local, state, or national register, such as the U.S. National Register of Historic Places.

Why are older homes more expensive to insure?

Historical homes—including those on the National Register—often cost more to insure due to aging systems, outdated materials, and structural wear that raise the risk of damage. Repairs may also be required to meet modern building codes, adding to the expense. In addition, if the home’s original features were built with rare or obsolete craftsmanship, repairs and replacements can be far pricier than standard fixes.

What is the best homeowners insurance for historic homes?

Securing the best homeowners insurance for a historic home will depend on your property's age, as well as its condition and unique features.

Three main coverages to look for include

1. Guaranteed or extended replacement cost. This coverage allows you to rebuild your home with historically accurate materials.
2. Ordinance or law coverage. Helps cover costs if you are required to bring the home up to today's modern building codes.
3. Special endorsements or add-ons. Adding endorsements to your policy is a way to make sure your historic home is properly protected by helping to cover what standard homeowners insurance might miss. These policy add-ons can include guaranteed replacement cost coverage and, depending on where you live, coverage for flood, water backup, and sinkholes. These homeowners insurance add-ons can be a cost effective way to help you build the best homeowners insurance for your historic home.

What specific types of homeowners insurance should be considered for a historic or older home?

If you own a historic home, you might be able to add extra coverage to a regular homeowners insurance policy to cover specific age-related risks. However, if your home is very old or costly to rebuild, some insurers may not offer standard coverage at all. If you find yourself in this situation, you might want to consider an HO-8 policy.

What is an HO-8 Homeowners Policy?

An HO-8 insurance policy is a specialized home insurance policy specifically for older or historic homes or homes with unique features that may not qualify for standard homeowners insurance coverage.

An HO-8 homeowners insurance policy is typically used when a home's replacement cost exceeds its market value, which is common with older or historic properties. While these policies offer more limited coverage and protection for fewer types of damage, they typically cost less and may be the best choice when a standard policy isn't an option.

What is the difference between an HO-8 insurance policy and a standard homeowners insurance policy?

The main difference between a standard homeowners insurance policy and an HO-8 policy is the amount of coverage that is offered and how claims are paid out.

When it comes to coverage, a standard homeowners insurance policy provides broader protection against a few common risks. Under an HO-8 policy, a home is only covered for risks that are specifically listed on policy.

When it comes to paying a covered claim, a standard homeowners insurance policy pays out based on replacement cost value, meaning that it will cover the full cost of rebuilding or repairing your home without factoring in depreciation.

An HO-8 policy, on the other hand, generally only protects against 10 named perils (fire/lightning, windstorm/hail, explosion, riot, damage from aircraft/vehicles, smoke, vandalism, theft and volcanic eruption). So, in the event of a covered claim, an HO-8 policy will pay out based on actual cash value—less any depreciation. What this means is that you might get less money for repairs or replacements, especially if your home has aged features or materials that are no longer used today.

Simply put, a standard homeowners insurance policy provides broader coverage and higher payouts, while an HO-8 provides limited coverage but may be the only option for a historical or older home that will cost more to rebuild.

Contact your insurance provider or agent to make sure you are getting the right coverage for your needs.

2 quick ways to get insurance for an historic home

1. Get a quote for homeowners insurance online at Liberty Mutual.
2. Call for your homeowners insurance quote, so our representatives can walk you through the process: 800-295-1722