You have probably heard that insurers have problems with providing coverage for old houses. This is true, but what do you think is the cause of this reluctance? The reason lies in the increased risk that such houses pose. For example, some of the specific problems that your carrier may have with your old house include:
Lower-Rated Electrical Service
Your old home's electrical service may not be suitable for current electrical demands. For example, many old homes are equipped with 60-ampere electrical services. Such a service may have been more than adequate when the house was built. However, with the advent of multiple current-guzzler appliances such as microwaves, electric ovens, and air conditioners, 60 amperes doesn't just cut it.
Using multiple electrical appliances simultaneously increases the risk of overheating. The risk is especially higher if you factor in small circuit breakers, as well as old fuses and wiring, which such houses tend to have. The net result is that your house's old electrical service increases the risk of fire in your home. Upgrading to a higher-rated electrical service may help.
Galvanized Steel Plumbing
In the past, plumbers used galvanized steel plumbing with the hope of limiting rusting risk. This may work, but only for about 50 years or so. If your home is older than that, then there is a high chance that its plumbing pipes have begun to rust, which means you are at risk of experiencing water leak problems with all its nuisances.
The modern day plumbing materials such as copper and polyvinyl chloride (PVC) are much better at keeping rust at bay. Therefore, you may have to replace your galvanized steel pipes with these or other suitable materials.
Fuel tanks age, and when they do, they become susceptible to rust and deterioration, which increases the risk of leakage. A fuel leak can be dangerous, not only for the risk it poses for your house, but also for the environmental cleanup that will be required. Many insurers refuse to insure houses with old tanks (each carrier has its limit). Others may do so only after it has been inspected and certified as safe.
As you can see, there are many problems with insuring an old house; in fact, these are just a few examples. In most cases, you will find that you have to carry out a number of upgrades and renovations before your house is insured. Buying insurance for your old house, without renovating it first, can be very expensive.Share