Homes that are more than forty years old can be difficult to insure. All those years of wear and tear on systems and structures can cause problems. Roofing materials from more than forty years ago are not as durable as they could be. Sure, you could rebuild, but the cost of that might be higher than the market value of the property. Even then, it’s possible that the materials used to build the home might not exist anymore. And then there are those ever-evolving codes in the plumbing and electricity. That’s why you need an HO-8 policy.
What Is An HO-8 Policy?
If you are not able to secure a standard homeowner’s policy for your older home, an HO-8 policy may be for you. An HO-8 policy may cover fewer perils and come with lower dwelling coverage limits than the usual homeowner’s policy. However, it may cost much less. Your insurance provider may require you to buy an HO-8 policy if it is determined that your home would cost more to build than it’s worth.
High-Value Homeowner’s Insurance
Keep in mind that HO-8 policies don’t operate on replacement costs. In case of a disaster, you’ll want high-value homeowner’s insurance. This will take care of the cost of most damage to your historic home.
O’Donnell Agency LLC Serving New Jersey
New Jersey has its fair share of historic homes, some dating back to the Colonial Era. Yours might not be quite that old, but still old enough to qualify for an HO8 policy. If you need your older home insured, please get in touch with O’Donnell Agency LLC. Our knowledgeable agents will do all they can to help you get what you need.