If your floor boards squeak it likely means your home is old. And if your home is older than 30 years it likely means your insurance company is bothering you to upgrade key features of your home before you can renew your home owner’s policy. Don’t let the thought of expensive repairs scare you though - more and more often insurance companies are rewarding home owners that upgrade their homes with lower insurance rates.
Even if you’re planning to buy an older home with 60-amp electricals, a septic system, an external fuel oil tank or a wood burning stove - make sure the cost of necessary upgrades are factored into your offering price. Get in touch with your insurance agent to know what exactly needs to be changed to avoid any nasty surprises.
When we were shopping for a house we visited one or two houses that needed obvious upgrades. Even though we didn’t buy an older house the advice our insurance agent gave us is invaluable to other homeowners. Some key problems to look out for in older houses are:
Galvanized steel: Commonly used in home plumbing systems before 1950, the plumbing only has a lifespan of 40 to 50 years. As the home ages the steel’s corrosion increases the risk of leaks and ruptures that can cause potentially severe and costly to avoid water damage. Make sure the plumbing has been upgraded or account for the cost to upgrade it yourself before placing a bid.
60-amp electricals: This 50 year old system can overheat with use and is the main cause of electrical fires in most old homes. An upgrade from a 60 amp to 100 amps may be needed alongside the installation of a switching device that allows you to use more than one heavy appliance at a time. This particular upgrade is not necessarily very expensive.
Fuel oil tanks: After three decades of use oil tanks prone to rusting, deterioration and leakages. As the fuel leaks into the environment they can also be considered environmental and health hazards. Removing or replacing the gas furnace with an electrical will not only provide you with peace of mind but safety as well.
Wood-burning stoves: While wood burning stoves are still very popular they might be a fire risk. Some insurance companies, but not all, may require you have your stove removed or certified by a technician to make sure it’s safe to use. To be extra cautious remember to clean and inspect the stove every year. If you decide you can forgo a wood burning stove tell your insurance agent that you’re removing a wood stove and you might even lower your rates.
Another consideration regardless of if you’re buying an old home or live in one is to utilize the services of a home inspector every once in a while to make sure your house is free of any danger. Most home inspectors don’t cost a lot but their report can be an invaluable guide to any home owner trying to save on insurance and improve their safe being.
