Buying a home may be your biggest investment yet so it takes time, energy, and money to find the perfect fit for your needs. While some may prefer new construction, others love the personality and charm of older homes. If your tastes lean towards older homes, you may need to understand some challenges you may face when purchasing a home that is 25 years old or older. Insuring older homes may come with some concerns so you must be adequately prepared to handle any obstacles forthcoming if you are in the market to sell or buy an older home.
If you own any home, you most certainly need homeowners insurance protection; however, some older homes may pose extra challenges, such as a higher insurance premium than perhaps that of a newer construction. Because older homes typically experience more losses than newer ones, the insurance companies must operate under tight restrictions to enforce a premium that corresponds to the likelihood of losses.
Your Dream Home Can Turn Into a Nightmare Without Preparation
Imagine looking for the home of your dreams and finally finding the perfect fit! It was love at first sight for you and all your family members until the inspection unveiled significant issues surrounding the plumbing and electrical. You are now faced with some obstacles that must be addressed and corrected before proceeding with the sale of your dream home AND before any insurance company will even consider insuring older homes.
Below Are Some of the Common Concerns That Must Be Addressed Before Insuring an Older Home
Roof- One important area of concern is the roof. Just because a home is older doesn’t mean the roof is, but a roof inspection will determine any potential issues such as aging, rotting, leaking, or missing shingles. Once the inspection is complete, any concerns must be acknowledged and corrected.
Electrical- Most insurance companies have apprehensions about insuring a home that has significant electrical issues due to the potential risk of fire losses. Before agreeing to buy or sell an older home, it is recommended you have a qualified electrician inspect the home for potential hazards such as knob-and-tube wiring and fuse boxes. Once any issues have been detected, you will need to address/correct them. If these issues are not resolved, you may find it nearly impossible to find an insurer to protect that home.
Plumbing- Many older homes still have old plumbing, which may consist of galvanized steel pipes. This type of plumbing is conducive to leaking, flooding, and rusting and should be addressed when looking to buy or sell an older home. It is wise to hire a certified plumber to do an in-depth inspection of the existing plumbing to detect any potential hazards before insuring older homes.
Heating/Air (HVAC)- One major area of concern with older homes is the current heating and air systems. If the home you are considering buying has an older HVAC system, you will want to hire an authorized HVAC specialist to inspect it to detect any potential dangers. If you have any questions, always contact your local Florida independent insurance agent and we can assist.
Ideal Insurance understands the allure of an older home and is here to assist you with any questions regarding any insurance issues you may have when it comes to insuring the home of your dreams. Feel free to contact us at Ideal Insurance at 941-921-2102 for all of your Florida homeowners insurance needs.