Is Insurance More Expensive For Older Homes?
Getting home insurance is usually not that complicated but there can be things lurking in a Victorian era home that may negatively affect your insurance premiums. We want to share with you the top 6 things that could affect your insurance policy, why and how to spot them. This list will help prepare you before you buy so you don't get stuck having to do costly updates to have your house insured.
PLUMBING
One of the first things we check for is galvanized steel plumbing. These pipes were installed in homes built up to the 1960s. It can still be in working condition but they are prone to corrosion from the inside out. This can lead to major water leaks if they burst. You can check by finding the main water line and scratching the pipe with a screw. If the scratched area is a gray/silver colour then that is a good indication that it is galvanized steel. Also check for any rust spots if there is plumbing exposed in the basement ceiling. If you find these in your home, your insurance company may require you to upgrade it to copper or plastic.
ELECTRICAL SERVICE CAPACITY
Check the electrical panel to see how much electrical service is available to the home. Some of our city’s older homes were built with 60-amp electrical service which is not enough power to service our modern day needs. Open the electrical panel to see if the main shut off switch has a number printed on it. It will indicate 60, 100 or more. However, It could not be marked. In this case, check the electrical meter outside the home and see if it is noted there. If not updated, it could lead to overuse and overheating with the potential to cause an electrical fire. Your insurance company may suggest you upgrade to at least 100 amps.
WIRING
Knob & tube wiring was used a lot in older homes. The issues with knob and tube are mostly due to its age, and with age comes wear and tear. Over the years, the wiring may have worn down leading to a serious fire hazard. The basement is the best place to look and get a sense whether the home has been extensively rewired. If the basement ceiling has been left exposed, check to see if you spot any of the white knobs or tubes. If you do, check to see if there is newer wiring running alongside it. Sometimes the old wiring was left there but is no longer in use. Many insurers want to see all exposed knob and tube wiring replaced with the new systems before they will provide you with coverage. On some occasions homes may be covered if the wiring is inspected and deemed safe by the Electrical Safety Authority.
ELECTRICAL
Many types of wiring have been used through the years and they don't necessarily pose a problem. However, knob and tube is the most commonly feared. It was used from the turn of the century until approximately the 1950’s. At the time it was a great system and can still be functional. Over time it’s been found to have worn down to the point that it can be a fire hazard. The other important aspect of your home’s electrical system that you may need to consider updating, is the amp capacity. Older homes were mostly built with a lower amperage than what is now required for our modern power needs. If the home has a 60 amp system you will likely need to upgrade it to 100 amps or higher depending on your plans for usage.
WOOD BURING STOVE
Any wood burning heat source can obviously be a fire hazard if it hasn't been maintained or serviced properly. If there is a wood stove or fireplace in the home your insurance company may want you to have it inspected by a certified professional and get a WETT certificate. They may also request that you get it cleaned and inspected by a professional sweep or technician at least once each year, prior to renewing your policy.
FUEL OIL TANK
Most of the homes that were heated using oil tanks have long since been converted to a more modern heating system but if you find one, here's what you need to know. If the tanks are 25 years or older, they are highly susceptible to deterioration and are considered environmental hazards. Most insurance companies will only insure a fuel oil tank provided it is less than 20–25 years old and has been properly certified.
ROOF
Your roof is what keeps the elements out so an old leaky roof can cause problems. Ask the seller when it was last replaced and do a visual inspection with a home inspector to look for any missing or loose shingles or bent / sagging eaves. You may also want to keep an eye for any evidence of leeks inside on the ceiling of the top floor of the home. The average lifespan of a roof is approx 20 years so if it hasn't been recently replaced your insurance company may require you to upgrade it OR they may charge you a higher premium for the increased risk.
Your insurance company will ask you to provide details about how the home is constructed and the types of systems within it. This will also help you familiarize yourself with the details of how your home is constructed. It is always recommended that you have a home inspector check over the house so you have all the answers. The best way to know how any of these things may affect your policy is to speak to your insurance provider.
