A standard HO-8 homeowners policy is designed to address the needs of people who have older homes with historic value. Although these policies cover the cost of standard repairs, they don’t provide replacement cost coverage and—depending on your home—may not always be the best choice.
Several insurance companies specialize in homeowners policies for historic homes. These insurers can write a custom policy to suit your needs. Such a policy can include coverage limits that are greater than those offered by a standard policy. In addition, these policies generally offer the option of guaranteed replacement cost coverage. If you decide to go with an insurer that specializes in historic home coverage, you can expect a residential consultant or appraiser to visit your home and conduct a thorough inspection.
In some cases, historic district associations require that all repairs conform to their criteria for maintaining the historic integrity of your property. For example, you might have to replace the balusters on your damaged widow’s walk with exact duplicates of the originals. In making such repairs, you may need the services of suppliers or artisans with special parts or skills. Because insurance companies that offer historic home coverage often have the appropriate contacts, they may be able to put you in touch with the people you’ll need.
Historic home coverage policies may also offer features not included in a standard homeowners insurance policy. Often, there’s little or no limitation on the additional living expenses they’ll cover if you have to vacate your home while repairs are made. In addition, they’ll frequently cover occurrences such as sewer backups that standard policies don’t, and the coverage limits for personal property (e.g., jewelry or fine art) are sometimes substantially higher than with a standard homeowners policy. Of course, the cost of a specialized policy for a historic home is higher than that of a standard policy.
If you have questions or need assistance, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166.
Disclosures
The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
