Heritage Home Insurance

What Are Tough to Insure Homes?

Insuring homes is a straightforward process for most homeowners. However, that isn’t the case for all, as others face many issues that make the process more difficult. Older homes that need updating fall under this category, and particularly homes with certain types of electrical wiring, plumbing, and heating.

To understand if your home belongs to the “hard to insure” category, we break down the most common issues that come with tough to insure homes.

Antiquated Homes in Need of an Update

Homes that are over 25 years old are typically harder to insure, especially if they have not been updated. It is risky for insurers to insure older homes because age is a factor in the wear of the materials around the house. Moreover, many things used in the construction of older homes are now considered dangerous or unsafe, not to mention non-compliant with recent laws.

Besides the age of the home, insurance companies look at various factors that indicate if it’s susceptible to risk. Some of these factors are the conditions of the house’s heating, plumbing, and electrical systems.

Outdated Electrical Wiring

A house with outdated wiring belongs to the tough to insure homes category. Some of the types of wiring considered outdated are:

• Knob and Tube Wiring
  Knob and tube wiring is not dangerous on its own for the most part. The main reason why it’s dangerous in older homes is largely because of improper installation and incompatibility with modern electronics usage. It’s easily overloaded, and the rubber insulation on it tends to wear down quicker than other types of wiring. Beyond that, it doesn’t have a ground wire. If the system is overloaded, the excess electricity doesn’t have anywhere to go, which could cause fires.
• 60-Amp Electrical Systems
  “60-amp” refers to the amount of power that the house has, based on the electrical demand at that time. Today, most new houses have 100-amp or even 200-amp power, which means that 60-amp electrical systems experience more stress than they’re capable of handling.
• Aluminum Wiring
  Aluminum wiring is mainly dangerous because it lacks the durability of other types of wire. When it is heated, it expands. In addition, its softness means it is prone to damage, potentially leading to exposed wires. If the wires are exposed while electricity is running through them, they could pose a real fire risk, which is the main reason insurance companies prefer not to bother with homes that have it.

If your older home has a knob and tube system, 60-amp service, or aluminum wiring, it has a greater chance of catching fire and having other problems that may result in claims. Understandably, most insurance companies avoid offering insurance protection for these tough to insure homes.

Outdated Plumbing

There are certain types of plumbing common in older houses that make it hard to get insurance due to the higher possibility of claims. The types of plumbing that are typically tough to insure are those that use lead pipes, galvanized steel pipes, polybutylene pipes, and Kitec pipes.

• Lead Pipes
  Lead was very common decades ago, as back then the dangers were not well-understood. These pipes are also problematic, though, because they can corrode, rust, and burst far more easily than standard pipes. Their lackluster durability means that insurance companies would rather not cover homes that have them.
• Galvanized Steel Pipes
  Galvanized steel pipes are pipes coated with zinc to prevent corrosion and rust. Unfortunately, galvanized steel pipes rust and corrode more easily, much like lead pipes. As such, it can also lead to weakened pipes and pipe bursts, and in turn, attempted insurance claims.
• Polybutylene Pipes
  As with the pipes above, polybutylene pipes lack durability. This is not just general durability, though – it is specifically chlorine exposure that weakens these pipes. Chlorine needs to be in the water to purify it, and yet that same chemical destroyed the pipes in many older homes. They would weaken over time, particularly at the joints.
• Kitec Pipes
  Kitec pipes are a type of pipe made of polymer and aluminum. These pipes were reinforced with brass, making them seem durable. However, this brass contained high zinc content. When brass is exposed to oxygen and water, this zinc breaks down. After that, the pipes would suddenly burst.

If your home has any of the plumbing mentioned above, it is going to be difficult to get insurance. However, James Inwood can help you with the different solutions we offer. 

Call any day from 9 to 9 and we can discuss the options available for you.

Outdated Heating

A wood-burning appliance or an older heating system is another reason why some homeowners are having a hard time getting their house insured. Heating appliances and systems like this are a high fire risk, likely to fail and cause burst pipes or fire that can lead to claims.

• Wood Burning Stoves
  Wood burning stoves and other appliances make it hard for homes to get insured because they are a high fire risk. However, you may get your home insured if your wood-burning stove is only a secondary heating source. Some insurance companies may insure homes with this heating appliance, but they need Wood Energy Technology Transfer (WETT) inspection.

• Oil Furnace
  An oil furnace is also a fire risk. Not only can it cause fires, but it also has the added danger of releasing carbon monoxide in your home. All these dangers make insurance companies think twice about insuring older homes with these types of heating systems.

An outdated heating system makes it difficult to get home insurance. Fortunately, James Inwood offers heritage home insurance that can cover these issues. We can help you look for insurance for homes over 100 years old, taking into consideration all the problems mentioned above. We have varying options, all meant to make paying for older home insurance easier for you.