If you’re thinking about buying a house that is a historic landmark or more than 40 years old, it may be challenging to find homeowners insurance coverage.
Many companies refuse to cover these homes because of the high costs to repair or rebuild them if they get damaged.
An HO-8 homeowners insurance policy is specifically designed for older houses. It covers a dwelling, other structures, additional living expenses, personal property and liability. An HO-8 policy only covers a list of named perils. If a property gets damaged by something else, the insurer won’t pay.
Generally speaking, an HO-8 policy covers actual cash value, not replacement cost. If you have actual cash value coverage and you file a claim, you will receive an amount that takes depreciation into account.
If you’re thinking about buying an older home, contact your insurance agent to discuss your coverage options.