The International Risk Management Institute offered these tips: Is Your Historic Home Properly Insured?
Some of your homeowner clients may have historic homes or homes located in historic districts. As a result, the house could be subject to historical renovation requirements. The following are some tips for you to pass on to clients with this unique loss exposure.
- Verify that the home has an up-to-date inspection with a properly calculated replacement cost. Detailed questions focusing on the attributes of older homes are paramount, so the inspection performed should be one with historic homes in mind. Inexpensive and one-size-fits-all inspections are inappropriate for historic homes.
- Property owners of historic structures should avoid any type of functional replacement cost endorsement because this allows less costly construction materials and methods to be used to repair the home. These materials and methods may reduce the value of the home and may not meet compliance requirements for historic homes.
- For insureds who want to replicate custom or historical features of the home, such as stained-glass windows, antique wood floors, ceiling moldings, or hand-carved banisters, a restoration cost homeowner policy (or restoration cost homeowner endorsement) is recommended.
- Consider additional ordinance or law coverage since older homes may not meet current building codes. Standard homeowner policies contain limited ordinance or law coverage.
- For historic homes that are being restored, contractors and architects who are experienced in this area should be used. Note that any renovation plans typically must be approved by the local historical commission.
Get more personal lines insurance and risk management tips and ideas from IRMI.
International Risk Management Institute, Inc.
e2Value offers the ‘Historic Registry’ option for those homes that are on the historic registry or for those in historic districts. This is an important characteristic to specify since builders will need to follow certain rules and will incur added costs for homes with this designation.
Owners of vintage homes should be expected to demand and only use the contractors with the right experience and knowledge to repair and replace their type of home. The additional oversight, limits and requirements may deter some builders and often lengthens the rebuilding process. Not all builders are capable of handling these types of projects and some builders choose not to work on these homes due to the restrictions and the longer construction schedule.
The e2Value estimator tools were designed to handle homes of all sizes, ages and values, whether they are modest homes, museum quality homes or those in between. We understand these homes and provide the options necessary to value them accurately. Whether you are looking for valuations for high-value homes, Mainstreet® homes, condos, co-ops, commercial properties, manufactured homes, log cabins, or farms and ranches, our patented estimator can quickly calculate the cost of replacing a residential, commercial or farm structure and provide you with a fast, cost-effective and accurate replacement cost valuation. Contact us for more information.