If it's your first time buying insurance, you likely have questions about your insurance rates and whether older homes face higher costs than newer houses. To learn more about coverage for older homes, read through our guide below!
Is homeowners insurance more expensive for older homes?
In general, homeowners can anticipate paying more for their insurance coverage if they live in an older home. When calculating costs, insurance companies weigh numerous factors, one of which is the current condition of your property and whether it's up to date with current building codes. Because an older home's structure may be less sound than a new-build and feature plumbing systems and electrical systems that are out of date, the associated risks of these homes are greater, which will factor into how much you pay for coverage.
Hazards associated with older houses
When purchasing an older home, there are several hazards you need to be aware of. Here are some of the most common ones:
Knob and tube wiring
Knob and tube wiring is a type of electrical system that has an increased fire risk, given that they overheat easier than current electrical systems. Another type of electrical systems to watch out for are ones with aluminum wiring, which is also a fire hazard.
Outdated plumbing systems
Older homes likely have plumbing systems made from lead or galvanized steel pipes. These materials corrode quicker than modern pipes, leading to water damage and other damages in your older home.
Structural problems
Rotting roofing materials due to old roof age can lead to water damage in your home. If wear and tear is the cause of the leak, insurance companies typically do not provide coverage for damages.
Oil tank stoves/wood burning stove
These types of heating systems are found in older homes built over 40 years ago. Typically insurance companies price insurance rates higher for homes with these features, given the increased fire risk they pose.
Home insurance for older homes
While older homes may cost more to insure, there is still insurance for homes with character. Standard homeowners insurance products include third-party liability to protect your finances and interests if a lawsuit is filed against you for injuries or property damage and dwelling coverage. Under this portion, you'll have coverage for weather damage, fires, theft, vandalism, and other covered perils specific to your policy, up to your coverage limits.
How much does home insurance cost for older homes?
The average home insurance cost for Canadians is approximately $1000 a year. Keep in mind, however, that an insurance company will use numerous factors to determine what you will pay for your coverage. As such, you may pay significantly less or more depending on your unique home and circumstances.
Does home insurance cover plumbing issues?
Unsure whether your home insurance covers plumbing issues? It depends on how the plumbing problems came about. For example, general wear and tear and a lack of maintenance that cause water damage in your home are not covered by homeowners insurance. However, if your plumbing system is damaged as a result of a covered peril, it will be covered.
Can you invalidate your homeowner's insurance?
Yes, invalidating home insurance is possible. Common insurance claims that can be invalidated by homeowners include lying about the value of your home inventory, conducting criminal activities on your property, and more. Remember, home insurance adjusters conduct thorough investigations throughout the claims process. As such, it's important to be truthful about the circumstances of your claim from the beginning.
Does homeowners insurance cover pest control?
No, your home insurance policy does not cover pest contro Insects and vermin infestations are generally seen as a maintenance issue. Because of this, they fall under the homeowner's responsibility, rather than the insurer.
Will homeowners insurance cover appliances?
If the appliances in your older home are damaged, you may be wondering whether or not your home insurance will cover appliances. The answer is yes and no. If your appliances are damaged as a result of old age and a lack of maintenance, your home insurance policy will not cover the cost of repairs or replacements. That said, if your appliances were damaged as a result of a covered peril listed in your coverage such as a fire, then your policy will cover replacement or repair costs.
Does homeowners insurance cover mould?
Mould growth in your home is not only a health hazard, but it can also significantly damage your personal belongings and the physical structure of your property. So, does home insurance cover mould? Again, it depends on your coverage. For example, if flooding happens in your home as the result of a sewer backup or overland flooding in your area, you may be able to file an insurance claim if you have sewer backup coverage or overland flooding insurance, which are optional policies. Further, if a covered peril causes plumbing problems that lead to mould growth, you could also receive compensation for costs. To prevent home insurance claims like these, learn to prevent flooding and other risks around your house.
Can homeowners insurance be transferred?
If you're selling your home and planning to move into a new home, you may be wondering, "Does home insurance transfer to my new property?" Generally speaking, no your coverage won't always transfer to your new property. Because your house will be different and there are potential risks and other factors associated with your home that haven't been taken into account by your provider, you'll need to inform your insurance company of your move. At that time, you'll likely be asked to update your coverage to ensure you are sufficiently protected.
Contact BrokerLink for home insurance coverage
Are you looking to save money on your homeowners insurance? BrokerLink is here to help. With years of experience and access to some of Canada's top insurance companies, allowing us to customize your coverage to meet your needs and budget. Beyond standard house insurance, BrokerLink can also help you purchase the following home insurance:
If you're interested in working with one of our brokers, feel free to come into one of our many locations across Canada. If we aren't in your neighbourhood, you can also give us a call over the phone!
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