Why Are Older Homes in Florida More Difficult to Insure?

If you’re planning on moving to Florida, the first thing on your mind will be trying to find the perfect home. While there are many beautiful homes to choose from, you will need to remember that many of the homes available for sale are at least 30 or 40 years old. This means they have many components that may make them difficult to insure. To obtain coverage, you will need to have a 4-point inspection performed and share the report with the insurance provider.

The following are a few factors that make insuring older homes in Florida difficult.

  1. Older Roofs
    Many carriers have specific age limits when it comes to insuring the roof of your home. Since the roof is one of the most important things you want to insure, you will have to find an insurer who can help you find coverage for your home. Some roof types, like tile and metal, may qualify for coverage despite being older.
  2. Aluminum Wiring
    In the 1970s, some contractors used aluminum wiring instead of copper. Aluminum is much weaker and may become softer over time. Thus, it loses conductivity and may not be as efficient as it was when it was first installed. Overheating and loose connections can lead to many problems, including a loss of power or an increased risk of fire.
  3. Galvanized Plumbing
    Most insurance providers will not cover water damage in homes that have galvanized pipes. While the pipes were thought to be a safe alternative to lead, they became more corrosive over time. With most of the corrosion occurring inside the pipes, it was hard to tell what shape they were in. This is part of the reason why carriers limited the amount of loss they would cover to around $10,000.
  4. Faulty Electrical Panels
    There are several brands of electrical panels that insurance providers will not insure. Part of the reason for this is that they have been proven to be faulty or poorly constructed. They do not respond promptly when a trip occurs, resulting in overheating or an increased risk of a fire.
  5. Knob & Tube or K&T Wiring
    Knob and tube wiring has been used for over a hundred years. Because there is no ground wire and very little means of protecting against shorts, the risk of electrical fire is incredibly high. Many insurers will not cover homes with this type of wiring unless the homeowner agrees to replace the wiring.
  6. Polybutylene Plumbing
    Polybutylene plumbing is not commonly found in older homes, and its use has been discontinued. Used mostly in homes built between 1970 and 1990, this type of plastic resin was found to interact with chemicals in the water, causing it to become extremely brittle and break unexpectedly.
  7. Asbestos Siding
    Asbestos has been known to cause various health problems, including mesothelioma. It was used in many homes built in the 20s to the 60s and was generally mixed with cement. Most insurance companies may refuse to insure your home if it is found to have this type of siding.

If you have decided to move to Florida, it will be up to you to find out about any problems your home may have. Contact our agents at Locke Insurance Group to know if there is anything we’d recommend when determining the insurability of your new home. Call us today to schedule an appointment!

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