logo

Own an Older Home? Here’s something you need to know about home insurance!

tony • March 15, 2019

Did you know that many insurance companies have verbiage in the policy that will cap payouts from water damage at $10,000 on older homes?  In this situation, we’re not talking about water back up but rather damage caused by pipes breaking or leaking, appliances leaking, roofs leaking, etc.  You see insurance companies know that as a home ages, the potential for claims from water damage increases.  This could be from the degradation of plumbing material over time or even aging roofing materials or even aging appliances.  However, in an effort to mitigate these types losses to keep insurance rates low across the board.  Insurance companies will typically cap such losses at $10,000 once a home reaches a certain age – commonly 40 years old.

So what are you to do if you own an older home? 

Simply put, you ask for an exception.  The first thing you need to know when asking for an exception is that insurance companies like new things.  Specifically, they like to see newer appliances and fixtures, newer AC’s and Water Heaters.  But that’s not all, they typically will rely on the opinion of a third party when deciding whether to grant an exception.  In this case, they generally want you to provide a plumbing inspection or some type of certification from a licensed plumber verifying the plumbing systems are functioning properly and that there are no visible signs of leaks or damage. 

Now before you spend the money on the inspection or certification, you’ll want to check with your insurance company first for two reasons.  The first is that not all insurance companies offer exceptions.  The second is that the companies that do offer exceptions generally have specific guidelines that need to be followed if they are going to consider an exception.  Many times, if a plumber will certify that the plumbing systems are in good condition without any signed of leaks or damage, the insurance company will remove the $10,000 cap for losses caused by water damage.

Want to see what insurance rates look like in your area?  Get a quote online at shopitnow.chrinco.com or give me a call at 321-586-3754.  Chrinco.com – insurance simplified.

Want a home insurance quote from a local agent in Melbourne, FL?  Click Here to get started!

Want more tips like this?

Did you know we’re building amazing technology that will simplify insurance shopping?  Want to learn more –  Click Here and let us know!

Join the Chrinco.com community and follow us as we not only provide insurance tips to consumers but are also developing a new way to shop for insurance. Join the journey that we believe will change an industry.

Chrinco.com – Insurance Simplified.

A hand is pressing a button on a security system.
February 21, 2022
If you’re thinking about getting an alarm on your home here’s what you need to know about the discounts.
A woman is using a calculator in front of a laptop computer.
By tony February 17, 2022
It’s no secret that things are getting more and more expensive. From food prices to energy prices, it seems like all corners of the economy are being affected. We’re seeing supply chain issues, raw material shortages and labor supply issues all putting inflationary pressures on most consumables. And one area we’re seeing significant increases is in the cost to build a home.
A house that has been upside down in the sand
By tony February 10, 2022
Today we’re discussing one of the most common reasons for a home insurance claim denial but before we get there, let’s briefly discuss what a home insurance policy is and what it is not.
A person is holding a hat out of the window of a car.
By tony January 30, 2022
Recently we had a customer call in to let us know that he had sold one of his cars and that he would like the vehicle removed from his policy. While talking to the customer he mentioned that he sold the vehicle for $4,000 more than what he paid for it. While that is great news for him it underscores a potential issue in the auto insurance marketplace that we expect will trickle down to you, the consumer, later this year.
A green paid stamp on a white background
By tony January 8, 2022
If you have a mortgage with an escrow account, you have likely or will likely experience a time when your home insurance fails to get paid by your mortgage servicer before its expiration. This can be a terribly frustrating time for you. But if you live in Florida, just know that the state of Florida has your back.
An aerial view of a flooded city
By tony November 19, 2021
Recently, FEMA rolled out Risk Rating 2.0 and the rollout has been quite shocking for many Florida residents. Risk Rating 2.0 is a methodology used to accurately charge for flood insurance based upon a property’s own unique flood risks. Prior to Risk Rating 2.0 flood insurance rates were largely determined by what flood zone a property was located in.
A man is laying on the ground working on a car in a garage.
By tony November 6, 2021
It’s no secret that COVID has changed the way many companies are doing business in the United States and the same is true for auto insurance carriers as well. With all the supply chain issues and manufacturing shortages, we’re not only seeing the price of new and used automobiles increase in value, which is increasing the cost to insure, but more importantly we’re seeing vehicles take longer and longer to get repaired after a covered claim. In fact, we’ve seen completely repaired vehicles sit for months waiting for a chip. We’ve seen parts that used to take days to come in, take months. We’ve seen some parts come in and have to sit for weeks while other parts make their way to the repair facility.
A house with solar panels on the roof and a pool
By tony July 22, 2021
Recently, we have received a number of calls from customers inquiring as to whether the installation of solar panels will affect their home insurance.
A living room with a staircase leading up to the second floor.
By tony November 12, 2020
When buying a condo, part of your association dues goes towards a master condo insurance policy purchased by the condo association. This policy insures the condo building for covered losses. An HO6 policy picks up where the master policy ends and pays for the internal structures to your particular condo unit.
Lightning strikes in the night sky over a city
By tony October 28, 2020
Florida is considered the lightning capital of the US with 17 of the top 30 cities nationwide for lightning. Strikes. As such, the question we commonly get asked is “does home insurance cover lightning strikes?”
More Posts
Share by: