Choosing the right insurance for your historic property can be just as important as your choice of repair or replacement materials. Just as historic properties can require unique or specialized processes and materials to maintain their historical accuracy, they can also require unique or specialized insurance coverage to ensure a proper restoration.
The challenge is that not all 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.
Here, we’ll look at a couple of key questions property owners should ask insurance providers in 2025 to determine the right carrier and coverage plan for their historic building.
does the insurance provider offer specialized coverage options?
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 repairs, but 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.
These specialized coverage options create the widest net of protection in the event of weather damage like wind or hail, and these coverage options can also protect the property in the case of the normal wear and tear that comes with historic structures.
does the insurance provider offer replacement cost 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.
does the insurance carrier account for local historic preservation ordinances?
Many historic buildings — commercial and residential — are subject to preservation ordinances designed to protect a property’s historical integrity and heritage. These regulations can impact the extent to which you can alter, repair, or restore a structure, and they can also dictate the kinds of materials that can be used in your restoration project.
It’s important to choose an insurance provider that accounts for the possibility of cost increases due to preservation ordinances to help defray any unexpected out-of-pocket costs and ensure a smooth, streamlined restoration process.
does the insurance provider offer special discounts or tax incentives?
Some insurance providers offer discounts to property owners who take additional steps to preserve and protect their properties. This can include a variety of precautions, such as installing modern security equipment or fire detection and prevention systems. Additionally, the right insurance provider will have an understanding of state or federal tax incentives that may be available for enhanced property maintenance and preservation.
These discounts or incentives can reduce insurance coverage costs and provide other forms of financial benefits, and partnering with an insurance provider that can provide guidance in this area is key to properly maintaining your property while also saving you money in the process.
Partnering with 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 to repair your property should it experience damage or require restoration work.
Renaissance Historic Exteriors has decades of experience in working with commercial and residential 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 restoration services.
