insurance for older homes

May 4, 2007 10:22 AM

Owners of older homes - from whom do you get your homeowners' insurance?

Our house (built in 1926, 1400 square feet, plaster walls and hardwood floors) has a replacement value that is about three times its market value. This, of course, means the quotes we're getting for yearly premiums are crazy-high. (That is, if we're not getting rejected outright for coverage because we have a little bit of galvanized pipe in our plumbing system.)

I looked at HO-8 policies but they only provide coverage for fire and wind damage.

Are there any companies that will insure for less than full replacment value, or even market value? Bonus points if they have offices located in Western New York.

posted by Lucinda to work & money (19 comments total)

You didn't state if you were carrying a mortgage. That can make a difference I believe. A mortgage company will require you to cover full replacement value on the(ir) home.
posted by jerseygirl at 10:34 AM on May 4, 2007

Oops, sorry. Yes, we have a mortgage. I just called them and their insurance requirement is 80% of the appraised value, or the amount of the mortgage, whichever is greater.
posted by Lucinda at 10:43 AM on May 4, 2007

I have a 1923 house that is just slightly bigger than yours and we just insured the mortage amount and it is very reasonable, we use State Farm.
posted by stormygrey at 10:45 AM on May 4, 2007

I use AmFam for a house built in 1910. I have been very happy with them. I dropped AllState to switch.
posted by pieoverdone at 11:12 AM on May 4, 2007

Seconding State Farm.
posted by Pollomacho at 11:14 AM on May 4, 2007

I use A+ / California Casualty, and for our 1926 bungalow they require 75% of the appraised value, which is what we carry. Because of the age of the house we can get away with having, still, 10% older wiring (although the knob/post stuff is all gone), some galvanized pipe - that's a real bear to replace! - and an old furnace.

They have been very helpful for the most part, but it was like getting blood from a stone when our house was ransacked and we wanted a check cut to replace everything.
posted by luriete at 11:20 AM on May 4, 2007

KEEP CALLING AROUND!

I just insured, with great hassle, a similarly-aged brick house with, yes, crazy replacement values from some insurers. And with a wee bit of galvanized pipe, which didn't help anything despite "Look, we just bought it, the pipe's five feet and will be out of there soon..."

Quotes at the high end were almost 4x what I paid in the end.

I went with RBC, which doesn't seem (?) to have home insurance in the US. The Co-operators also offered an okay rate, but, again, ? in US.

I called at least ten places before getting the non-stupid rate from RBC. And, even then, they were not eager to do it. Call around loads, and be persistent if you hear a good quote (and get what on-line quotes you can, even though a lot of the on-line quote systems don't work for older homes; if you can get a good rate on-line, it makes it easier when you're on the phone).

The replacement values I heard had a $150k range. I now think insurers are alchemists. Good luck!
posted by kmennie at 11:20 AM on May 4, 2007

I didn't get far enough to have the replacement value issue when I called for quotes.

But I was told that the age of the structure was a huge issue. Also, by the way, unless we replaced the roof, boiler, completely upgraded the electric, tested for asbestos, lead, radon, and gods-know-what else, etc etc etc., it was uninsurable. I calmly explained that we needed insurance for the mortgage to be approved by the lender. They told me I needed signed agreements with contractors for the above. I pointed out that we couldn't hire contractors before we actually closed on the house. They said that if contractors would sign an agreement verifying that all upgrades would be completed before we occupied the house, they may be about to do something for us but that it would be very expensive. Back and forth, until I pointed out that they must not insure very many urban homes if they think that 100-yr-old masonry walls are an "enormous risk" and is this how they deal with new homeowners who have held renters insurance with them for 11 years with no claims?

ANYWAY. I got this kind of run-around from several major insurance companies if I called their national number. But when I called a local office in my neighborhood who is an Allstate affilate, I got a very reasonable rate with no hassle.
posted by desuetude at 11:39 AM on May 4, 2007

Our house is of similar vintage and materials: 1932, plaster, hardwood, even original wiring! It only needed a new roof when we bought it though. We're insured with Metlife in Westchester County, NY and haven't felt our premiums are outrageous. Then again, this is the first time we've owned, so maybe we don't know anything.
posted by scratch at 12:04 PM on May 4, 2007

I use an independent agent for my auto and home insurance, and he set me up with Grange. He didn't even ask that many questions and I'm pretty sure he's never seen the house (built in 1909). Maybe going with a smaller independent agent is the way to go.

Also, esurance.com is selling homeowners insurance now, and I went through the quoting process and got a reasonable rate.
posted by thejanna at 12:23 PM on May 4, 2007

A good choice for older homes in NY is Adirondack Insurance Exchange. You will have to find an independent agent who writes with them. They will want you to have had updates to the roof, electrical system, plumbing and heating withing the last 10 years, but they don't expect people to gut their homes just to qualify for insurance. They have a "functional replacement cost" endorsement that I think is great for older homes. In many cases, older homes cannot be completely rebuilt as they were. For example, if you have plaster walls you'd probably replace them with drywall partitions after a covered loss, etc...I used them to insure my home and they are A rated. I have a 1925 brick rowhouse in Brooklyn. They also offer auto insurance, so you may be able to save some extra dough by packaging. Btw, I do sell insurance for a living, but I'm not offering my services :)
posted by digiFramph at 12:27 PM on May 4, 2007

On my first 1915-ish house, I had insurance with USAA. They are wonderful, if you meet their membership qualifications. That is, generally: military, ex-military, or dependent or former dependent of military.

When I moved to a 1910-ish house a few years later, I switched to a local agent recommended by the realtor. The actual insurance companies changed every couple of years due to the volatility of the insurance market in Texas, some withdrawing from the market, etc. The costs were less, but I think USAA's service was better.

On my latest residence (newly-constructed house) I switched back to USAA.
posted by Robert Angelo at 12:40 PM on May 4, 2007

ANYWAY. I got this kind of run-around from several major insurance companies if I called their national number. But when I called a local office in my neighborhood who is an Allstate affilate, I got a very reasonable rate with no hassle. Yes, the agent gets a big commission and has every incentive to get you as a customer.
posted by caddis at 12:48 PM on May 4, 2007

I got mine through my mortgage broker, and it's actually under-written by Lloyd's of London (I live in the US).
posted by Mister_A at 12:57 PM on May 4, 2007

Thanks for all the advice, everyone. I've called State Farm and a few other places, keeping my fingers crossed.

Robert Angelo > our insurance is presently USAA. Of all the replacement cost amounts we've gotten from different agencies, theirs was the highest. (This whole mess started when they wanted to make sure the information they had was "up to date". When I made sure everything was up to date, the replacement value of our house jumped almost $100K.)
posted by Lucinda at 1:26 PM on May 4, 2007

I have a 1907 house, slightly smaller with plaster and wood. USAA had zero problems insuring it and very reasonable rates.
posted by sulaine at 1:27 PM on May 4, 2007

slightly smaller (1310sf) 1930 colonial, plaster walls, hardwood floors, asbestos-wrapped pipes in the basement (wrapped beautifully per our inspector and the HVAC guy). State Farm was very reasonable. Also if you have other insurance with them (we have 2 auto policies) you get a multi-line discount, which is nice.
posted by spinturtle at 1:54 PM on May 4, 2007

Replacement cost estimators can vary widely from one insurer to the next. Any company worth their weight will inspect your home as well. This is to provide the company with "proof" of insurability but it also gives, perhaps, a more accurate r/c of your home. In personal experience, I've seen r/c values go way up after inspection (premium goes up) and I've also seen r/c estimates drop (premium can be reduced). A good independent broker will give you a copy of your inspection. Inspections can also result in recommendations...requiring repairs or action to address a potential liability claim. A tree root raising a sidewalk, to more simple repairs. Get someone who can explain coverage and coverage options to you before you sign and pay...Best of luck!
posted by digiFramph at 4:27 PM on May 4, 2007

Just as a followup: We have decided to use State Farm. We're also moving our car insurance to them to get the additional discount.
posted by Lucinda at 8:55 AM on May 23, 2007