Owning a historic home is both a privilege and a responsibility. These properties hold architectural beauty, cultural significance, and unique craftsmanship that modern homes simply can’t replicate. However, insuring a historic property comes with challenges that standard homeowners insurance may not cover. That’s where a historic home insurance policy becomes essential.
Unlike regular homeowners insurance, a historic home insurance policy provides coverage tailored to the specific needs of older homes, such as the cost of restoring original materials and complying with preservation regulations. Without the right policy, homeowners risk significant financial loss if their property is damaged.
In this guide, we’ll explore:
- Why historic homes require specialized insurance.
- Key features to look for in a policy.
- Common mistakes homeowners make when choosing coverage.
- How to find the best insurance for your historic home.
By the end, you’ll have a clear understanding of how to protect your property with a policy designed specifically for historic homes.
Why Historic Homes Need Specialized Insurance
A historic home is more than just a place to live—it’s a piece of history. Whether it features hand-carved woodwork, original stained glass, or intricate masonry, preserving its authenticity requires specialized care. Unfortunately, standard homeowners insurance often falls short when it comes to the unique risks and restoration costs associated with older homes. That’s why choosing a historic home insurance policy is crucial.
The Unique Risks of Historic Homes
Older homes face challenges that modern properties don’t, making insurance coverage even more important. Some of the biggest risks include:
- Aging Materials – Many historic homes were built with materials that are no longer commonly used, such as hand-cut timber, plaster walls, and antique fixtures. These elements are expensive to replace and often require custom restoration.
- Higher Repair and Restoration Costs – Unlike modern homes, where parts can be easily sourced, restoring a historic home often requires skilled artisans and custom materials, increasing repair costs significantly.
- Stricter Building Codes – If damage occurs, local preservation laws may require the home to be rebuilt according to historic standards, which can be costly and time-consuming. A standard insurance policy may not cover these expenses.
- Fire and Structural Risks – Outdated wiring, old plumbing, and aging foundations can increase the risk of fire, water damage, or structural issues. Some insurance providers may even refuse to cover homes with original electrical systems unless they are updated.
Why Standard Homeowners Insurance Isn’t Enough
A standard homeowners policy is designed for modern homes and typically covers only the market value of a property. However, historic homes require a different approach:
- Market Value vs. Restoration Cost – Many standard policies only pay for the market value of a home, which may be significantly less than the cost of restoring it with period-accurate materials. A historic home insurance policy ensures the home can be restored to its original condition.
- Exclusions for Outdated Systems – Many insurers exclude coverage for damage caused by old wiring, plumbing, or other outdated features, leaving homeowners responsible for costly repairs.
- Lack of Coverage for Original Materials – If a home’s original hardwood floors, stained glass windows, or custom millwork are damaged, a standard policy may only cover the cost of replacing them with modern equivalents, rather than preserving the home’s authenticity.
The Benefits of a Historic Home Insurance Policy
A historic home insurance policy is designed to address these gaps and provide comprehensive protection, offering:
- Full Replacement Cost Coverage – This ensures that if damage occurs, repairs will use materials and techniques that match the original construction, preserving the home’s historic character.
- Code Compliance Coverage – Helps cover the costs of bringing the home up to current building codes if required after a loss.
- Extended Coverage Options – Some policies offer extended replacement cost coverage, which provides additional funds if restoration costs exceed the insured amount.
- Protection for Unique Features – Coverage can be customized to include specific architectural details, such as antique fixtures, decorative moldings, and specialty roofing.
Choosing the right historic home insurance policy can make the difference between fully restoring a home’s historic beauty and facing out-of-pocket expenses that could be financially devastating.
Key Features to Look for in a Historic Home Insurance Policy
Not all insurance policies are created equal—especially when it comes to historic homes. A standard policy may cover basic repairs, but it often falls short in protecting the unique features and craftsmanship that make older homes special. To fully safeguard your property, you need a historic home insurance policy that includes coverage tailored to the specific needs of your home.
1. Coverage for Original Materials and Craftsmanship
- Covers the cost of restoring or replacing damaged elements with historically accurate materials.
- Provides access to specialists who can replicate original craftsmanship.
- Accounts for the extra time and labor needed for historic restoration.
2. Full Replacement Cost Coverage
- Coverage that accounts for the higher cost of labor and materials.
- Protection against inflation, which can drive up restoration expenses over time.
- No depreciation deductions that reduce your payout based on the home’s age.
3. Ordinance and Law Coverage
- Coverage for necessary upgrades to meet modern electrical, plumbing, and structural codes.
- Financial protection for compliance with historic district requirements.
- Extended coverage if local laws require specific materials or building techniques.
4. Protection for Unique Architectural Features
- Coverage for custom millwork, period-specific moldings, and decorative ceilings.
- Protection for antique hardware, hand-crafted doors, and original fixtures.
- Special provisions for historically significant exterior features like slate roofs, copper gutters, and hand-laid brickwork.
Common Mistakes to Avoid When Choosing a Historic Home Insurance Policy
1. Underestimating the True Cost of Restoration
- Specialized materials that are harder to source.
- Skilled artisans who can replicate original craftsmanship.
- Compliance with historic preservation rules.
2. Choosing a Policy Based on Price Instead of Coverage
- Low-cost policies may not provide full replacement cost.
- Some policies exclude key protections.
3. Not Checking for Exclusions on Outdated Systems
- Some policies exclude damage caused by original wiring and plumbing.
How to Find the Best Historic Home Insurance Policy for Your Property
1. Work with an Insurance Agent Who Specializes in Historic Homes
- Choose an agent who understands preservation requirements.
2. Compare Policies from Providers That Offer Historic Home Coverage
- Look for policies that include full replacement cost and ordinance coverage.
3. Get an Accurate Appraisal to Determine Proper Coverage Amounts
- Work with an appraiser familiar with historic homes.
Protecting a historic home requires more than just a standard insurance policy. These properties come with unique restoration challenges, higher repair costs, and strict preservation requirements that demand specialized coverage. A well-structured historic home insurance policy ensures that your home can be fully restored using period-accurate materials while safeguarding you from unexpected financial burdens.
If you’re ready to explore your options, check out this guide on Home Insurance to learn more about finding the best policy for your historic property.