Caring for and maintaining a historic commercial or residential property can be a truly unique and rewarding experience. It can also be a unique and complex experience, which is why historic property owners need an insurance carrier that can provide the kind of specialized coverage and protection to help ensure the structural and aesthetic integrity of your property.
However, the challenge is that not all historic property insurance providers are created equal, and historic property owners need to do their homework to choose the ideal carrier for their specific needs. These needs can include a range of variables, from the type of property to the kind of construction materials to the age of the structure.
This guide for choosing the ideal insurance carrier will help identify the ideal characteristics of an insurance provider in service of selecting one that can help preserve your historic building for generations to come.
Look for comprehensive coverage for specialized, historic construction materials
Historic structures often feature construction materials that are historic, highly specialized, and require a high degree of craftsmanship to properly restore or install. Some of these elements include historic roofing materials like clay tile or slate roofing, architectural sheet metal, historic masonry, and gutters and downspouts.
A standard insurance policy may only cover the cost of modern, less expensive materials, which can compromise the historical value and integrity of your property. Choosing a property insurance carrier that provides comprehensive coverage for specialized construction materials can help streamline the claims process, and it also ensures your restoration contractor can use the right materials to support the historical accuracy of your property.
Prioritize specialized coverage options
Along with specialized construction materials, choosing an insurance carrier that offers specialized coverage options will provide you with more flexibility and protection in the event you need to file a claim. Some of the more common specialized coverage packages include:
- Agreed value coverage. This type of policy ensures that, in the event your property is deemed a total loss, the insurance will compensate you based on the property’s agreed-upon value rather than its current market value.
- Ordinance of law coverage. Local historic preservation ordinances may require historic building repairs or restorations to comply with specific ordinances or historic building codes. This can increase the cost of your restoration, but an ordinance of law coverage ensures compensation for any additional costs that are required.
- Restoration coverage. Restoration coverage ensures compensation specifically for restoration work as opposed to a complete replacement. Restoration work can require an enhanced level of skill and craftsmanship, and restoration coverage will help support that expense.
Inquire about replacement cost insurance coverage
One of the more critical components of insuring a historic property is the option for replacement cost insurance coverage. Replacement cost coverage covers the full cost of repairing or replacing damaged aspects of your property without deducting for depreciation. This means you can restore your structure’s exterior — including historic roofing systems, carpentry, and masonry — without any added financial strain.
Many insurance carriers offer cash value policies, which do factor in depreciation and can significantly reduce the payout you receive to restore your property. What’s more, this can force your restoration provider to specify modern materials that lack the requisite historical integrity.
Ask about protection against a variety of risks
Historic structures are susceptible to more varied risks than more modern homes and buildings, in large part due to the age or condition of vital components. For example, historic properties often have older electrical systems and wiring, heating, cooling, and other mechanical elements that can increase the risk of fire.
What’s more, historic construction materials like clay roof tiles, slate roof tiles, architectural sheet metal, and cedar siding can be more costly to replace if damaged.
An insurance carrier that offers comprehensive protection against a variety of risks can mitigate these concerns. Plus, carriers that offer these kinds of packages may also provide financial assistance in upgrading your property’s exterior elements to help prevent damage that requires repair or replacement.
Don’t forget about eligibility for insurance discounts or tax incentives
Some insurance carriers will offer discounts to property owners who take preventative steps to preserve their historic building, such as installing updated security or fire prevention systems. In addition, there may be state or federal tax incentives for taking these steps, and partnering with an insurance provider that can help you navigate these possibilities can help you save time and money.
Choosing the right insurance carrier for your historic property can not only help ensure the preservation and longevity of your structure, but it can also provide peace of mind that you’ll have the financial support and wherewithal to repair your property should it experience damage or require restoration work.
Renaissance Historic Exteriors has decades of experience in working with property owners and insurance carriers to ensure your historic structure receives the care and attention necessary to preserve it for generations to come. Contact us to learn more about our services.
