I still have a formal post scheduled on insuring historical homes, but I thought I would get across three important concepts before I went into the nitty-gritty.
Here is an example based on absurdity. Let’s say you have a Honda Accord or a Lexus or a nice SUV-size vehicle and you got into an accident that totaled your car. How would you react if the insurance company said that all they could do for you is give a thousand dollars or recommended you buy a motorcycle!
The same goes for your historical home. If it, God forbid, burned down; you would not expect to be dealing with an insurance company that offers you a mobile home or a ranch style house instead or gave you only a small percentage of the value. Nor would the mortgage company tolerate that kind of coverage if you are still making payments.
That is why you require full replacement. And most insurance companies when they see a house older than a 100 years shy away. But our insurance companies here in town are specifically geared to service our historic district.
To give another example of absurdity, you don’t go to a veterinarian if you are sick. Yes, they are cheaper than a human doctor – but no one in their right mind would do it to ‘save money’. Neither do you expect to hire insurance companies that do not deal with homes older than a 100 years.
That’s why our local insurance agents are as precious as our historical homes and as valuable to the community as our beloved local banks. Their intent is to work with you to make sure your valuables are protected and to give options so the insurance coverage doesn’t break the bank.
Finally, there is a central purpose for insurance. TO PROTECT YOUR TREASURE.
The whole intent of insurance is to make sure your valuables are protected from loss. If you live in a precious and rare historical home in which your house is numbered in the tiny 8.3% of homes in America; you bet you want to protect it and that means to insure it for what it’s worth. If price-point is what you are focused on, then its best to sell and buy a new home elsewhere.