Insuring My Grandfather’s Old Home After Renovations
I inherited an old house that my grandfather built in the 1940s, and it was in dire condition when I took ownership. During the deed transfer, the insurance company inspected the property and raised concerns about some of the outbuildings. Ultimately, the insurance policy on the house lapsed because it was deemed uninhabitable, and despite exploring a few workarounds, I couldn’t complete the necessary repairs in time—especially with a child to look after.
Since then, I’ve completely renovated the place: I’ve stripped it down to the studs, rewired and replumbed everything, and put up drywall. I also installed mini-splits for heating and cooling throughout the house. Most of the work was done by me, and I’m pretty pleased with the results.
Now that the renovation is complete, I’m looking to get the property insured again. What should I expect during this process? How complicated might it be?
It sounds like you’ve put in a tremendous amount of work into restoring your grandfather’s home! Getting insurance for a newly renovated old home can vary depending on a few factors, but here are some things to keep in mind:
Updated Condition: Since you’ve gutted and renovated the house, it will likely be viewed more favorably by insurance companies. Highlighting the updates can help in securing coverage. Be ready to provide documentation of all the renovations, including permits, invoices, and photos.
Replacement Value vs. Market Value: Insurers may want to assess the replacement value rather than market value. Be prepared to explain the value of the improvements you’ve made.
Insurance Companies’ Criteria: Different insurance companies have different criteria for insuring older homes. Some might specialize in insuring homes that have been recently renovated, while others might view an older home as a higher risk. It may take some shopping around to find a company that understands the value of your renovations.
Potential Costs: Since the home was previously uninhabitable, premiums might be higher, at least initially. Make sure to get multiple quotes and compare them.
Liability Coverage: Don’t forget about liability coverage, especially if you are inviting people over as the renovations wrap up. It might also be beneficial to consider additional coverage for any unique features of your grandfather’s house.
Consult a Broker: If navigating the insurance landscape feels overwhelming, consider talking to an insurance broker who can help you find the best options suited to your needs.
Home Inspection: Be prepared for a home inspection. The insurance provider may require one to assess the updates.
Building Codes and Safety: Ensure that all renovation work is up to current building codes and safety standards, as this will greatly improve your chances of getting coverage.
Overall, while there might be some challenges ahead, being proactive and prepared with documentation and information about the improvements you’ve made can make the process smoother. Good luck, and I hope you find a solution that works for you!