Homeowner’s insurance is vital for anyone who wants to help protect their investment in their antique home. When it comes to antique or historic homes in Connecticut, a homeowner’s insurance policy may be more complex due to the home’s unique characteristics.
When insuring historic and antique homes, the year the home was built is significant. Homes built before 1945 are typically considered antique by insurers, while any antique home built prior to 1945, that also meets one of the following characteristics, would likely be considered historic.
Homes built prior to 1900 generally are found to be more difficult to insure. Commonly insurers have a threshold for the age of a home that they can accommodate, so not only may you find the insurance more expensive, but it may also be harder to find. However, Cross Private Client works with some of the nation’s top insurance carriers, giving you options to insure your antique or historical home in Darien, Ridgefield, or surrounding communities.
To request a quote for your historic or antique home, you can submit our form here. Cross Private Client Insurance currently has offices in Connecticut and Florida. If you prefer to call someone to start the quoting process, you can see a list of our offices and contact numbers here.
Many homeowners assume when buying a standard homeowner’s insurance policy that their entire property will be replaced to its prior state as a result of a claimable loss. However, this may not be the case when it comes to insuring an antique home with a standard policy.
When an antique home that has unique features is paired with a standard policy, it may not be adequately restored to its original form. A standard policy would replace those unique features with the minimum that the insurer is obligated to replace it with. When it comes to your antique or historic home, you want to be certain that the historic features are covered, replacing or rebuilding your home with historically accurate materials in the event of a claim.
Homes built prior to 1945 were built much differently than today’s modern homes, resulting in higher expenses to rebuild or replace materials if an incident were to occur. Homeowner’s policies typically offer to rebuild with materials of similar likeness and quality, and if your historic home was built with unusual woods or even brick, then your policy will likely cost more than a typical homeowner’s policy. These policies are intended to allow your home to maintain its historical integrity. Along with materials typically being more expensive, the craftsmen who install the materials tend to cost more due to the expertise needed to replace or repair your historic home. Between higher material expenses and higher construction costs, your premiums could be costlier for your antique home.
Replacement Cost is the expense that it will take to rebuild your home as it was before, not factoring in depreciation. The factors that are considered in an appraisal include, but not limited to, the location, size, age, quality, and style of the home. An appraiser will set the value of your historic home. This appraised value is the estimated replacement cost and if you do experience a total loss from a covered event, this is what your insurance company will pay out to you.
Guaranteed Replacement Cost (GRC) – although like replacement cost, GRC is different as it is not capped at the appraised monetary value. GRC guarantees to replace your antique home in the event of a covered loss. This means if your historic home’s appraised value is less than what the actual cost is to replace your home, or your home’s value wasn’t estimated properly, GRC will cover the true amount. This can be crucial for antique and historical homes because often when such a home is being repaired, the cost of repair exceeds the insurance dwelling limit. Without GRC, you could fall short of the necessary funds to rebuild your home.
A common afterthought are the requirements and building codes that are enforced when rebuilding your historic home due to a claim. Building Code coverage can help when an update to your home and accommodations to the newer building codes is required. When rebuilding, you may have to rewire your house, hardwire smoke detectors, or move the home on the property to meet the current set back requirements to meet the most recent building codes. This policy will usually cover the extra covered costs you will face.
Most standard homeowners policies provide a small amount of building code coverage, however, the older the home the more likely the house is out of compliance with today’s building codes.
This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.