Short Answer
Older homes typically cost more to insure because of higher risks associated with aging systems, older construction materials, and greater potential for claims. Roof age, plumbing materials, electrical systems, and the presence of knob-and-tube wiring or galvanized pipes all affect insurance premiums. Some insurers may refuse to cover homes with certain older features. Newer homes often qualify for discounts because of modern building codes and updated systems.
Insurance companies assess risk when setting premiums, and the age of a home is a significant factor. Older homes may have outdated electrical systems that increase fire risk, old plumbing that is prone to leaks and water damage, and roofs that are more likely to need replacement after storms. Homes built before 1978 may contain lead paint, and those built before 1980 may have asbestos in flooring, insulation, or siding. Some insurers will not write policies for homes with certain older features, like knob-and-tube wiring, galvanized steel pipes, or roofs over 20 years old. If they do offer coverage, the premiums will be higher to account for the increased risk. Newer homes or recently renovated older homes with updated systems typically qualify for lower insurance rates. Some insurers offer discounts for homes with impact-resistant roofing, updated electrical panels, and modern plumbing. When buying an older home, factor potential insurance costs into your budget, and consider getting insurance quotes before making an offer.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Insurance costs are an often-overlooked part of homeownership, especially for older homes. I always advise buyers of older homes to get insurance quotes during the due diligence period, not after closing. I have seen deals where the buyer was shocked by the insurance cost and had to adjust their budget. If you own an older home, updating major systems not only protects your home but can lower your insurance premiums. Let me connect you with a trusted insurance agent who can give you a realistic picture before you commit.
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