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Home Insurance for Old Houses: Wiring, Plumbing, Code Upgrades and What Insurers Look For

Home insurance for old houses can cost more and need extra coverage. Learn how insurers view old wiring and plumbing, plus ordinance or law coverage.

By Policy Compass Editorial Team · Published · 8 min read

Home insurance for old houses usually costs more and needs more attention than coverage for a newer home. The NAIC says premiums are often higher for older homes and homes in poor condition. Insurers also look closely at aging wiring, plumbing and heating. Most important, an older house can cost more to rebuild than you'd guess, especially under today's building codes. The right coverage choices matter as much as the price.

This guide covers what insurers look for in an older home and which coverage options to ask about. It also explains how to prepare before you shop. Underwriting rules vary by insurer and some coverage rules vary by state, so confirm details with your insurer or state insurance department.

Home insurance for old houses: what's different

Three things set older homes apart:

  1. Systems age. Original or early wiring, plumbing and heating can raise the risk of fire or water damage.
  2. Codes change. If an older home is badly damaged, repairs may have to meet current building codes, which can add cost.
  3. Original features are expensive to match. Plaster walls, custom trim and similar details can be costly to reproduce.

What insurers look for in an older home

The Insurance Information Institute (Triple-I) lists "an old plumbing, electrical and/or heating system" among the factors that can make a home high-risk. It says these represent "a higher chance of causing fire or water damage." Here's how that breaks down.

Electrical: knob-and-tube, aluminum wiring and old panels

Older homes may have wiring methods that predate modern standards, such as knob-and-tube wiring. Insurers' rules on it vary, so be ready to tell them whether any is still in use and what condition it's in.

Federal agencies flag related concerns:

  • Aluminum branch-circuit wiring. The CPSC says cables installed in new homes between 1965 and the mid-1970s may contain aluminum wiring. In a national survey it commissioned, homes built before 1972 and wired with aluminum were 55 times more likely than copper-wired homes to have outlet connections reach "Fire Hazard Conditions." The CPSC warns that failing connections often give no warning. Possible signs include hot face plates, flickering lights or a burning-plastic smell. It advises having a qualified electrician find the cause, not doing it yourself.
  • Knob-and-tube and insulation. The Department of Energy's weatherization rules require a visual inspection and safety evaluation of knob-and-tube wiring before work. Insulating around it requires over-current protection and damming as required by local authorities. If you're planning energy upgrades, involve an electrician.

Plumbing and heating

Old pipes, water heaters and heating systems matter for the same reason: water and fire losses. The NAIC also lists having a wood furnace or wood stove as a factor that can affect your premium. Keep service records for heating equipment and note the age of the water heater and supply lines.

The roof

Roof age and condition are major underwriting factors on their own. Our guide to getting homeowners insurance with an old roof covers inspections, age limits and roof settlement terms.

Overall condition

The NAIC notes that an agent might visit your home to take a photo or ask about its general condition. Fix obvious maintenance problems before you shop, and keep records of what you've done.

Coverage choices that matter for older homes

Insure the cost to rebuild, not the market value

The NAIC stresses that replacement cost and market value aren't the same. Market value includes your land and reflects your local housing market, while your dwelling coverage should reflect what it would cost to rebuild. In older neighborhoods, the cost to rebuild can be higher than the market value. The Triple-I lists features that drive rebuilding costs, such as exterior wall type, the roof, custom-built sections and special features like fireplaces, exterior trim or arched windows.

Modified replacement cost and the Modified Coverage Form

If you own an older home, the Triple-I says, you may have to buy a modified replacement cost policy. Instead of repairing features "such as plaster walls, with the same or closely similar materials," it pays for repairs "using today's standard building materials and construction techniques."

The NAIC describes a related option, the Modified Coverage Form, "for older homes, where the cost to rebuild is greater than the market value." It covers the same perils as the basic form, which is narrower than the most common homeowners form. Ask which form you're being offered and what perils it covers. Our guide to what homeowners insurance covers explains perils and exclusions.

Ordinance or law coverage

Building codes are updated periodically. The Triple-I explains that after damage, you may be required to rebuild to the new codes. It also says homeowners policies, "even a guaranteed replacement cost policy," generally won't pay that extra expense. An ordinance or law endorsement pays a specified amount toward bringing the house up to code during a covered repair.

Some states regulate this coverage. In Florida, under § 627.7011, insurers must offer law and ordinance coverage before issuing a homeowners policy. Florida lets the policyholder select a limit of 25% or 50% of the dwelling limit. A policy is treated as including the 25% level unless the policyholder rejects it in writing. Other states handle it differently, so ask what limit, if any, your policy includes.

Inflation guard and extended replacement cost

The Triple-I also describes an inflation guard that adjusts your dwelling limit at renewal. It describes extended replacement cost endorsements that can pay an extra 5 to 25 percent above your limit when construction costs spike. For how depreciation affects claims, see replacement cost vs. actual cash value.

Insuring a 100-year-old house: practical steps

  1. Get a thorough inspection. HUD's home inspection guide says an inspector will evaluate the home's condition and estimate the remaining useful life of major systems. It suggests asking about other tests, such as for asbestos or lead paint, where relevant.
  2. Get specialist opinions in writing. An electrician's and plumber's written evaluation gives insurers something concrete.
  3. Collect proof of updates. Keep permits, invoices and dates for rewiring, re-plumbing, new heating equipment or a new roof. The NAIC says some insurers offer discounts for updating electrical or plumbing systems or getting a new roof.
  4. Estimate rebuilding cost. Ask an agent or contractor to help, and list any features that would be expensive to reproduce.
  5. Decide how you'd want original features handled after a loss. Your choice affects whether a modified replacement cost policy is acceptable to you.

Buying an older home? Check its claims history too

An older house may come with a long claims record. You can't order a CLUE claims report on a home you don't own. The Wisconsin Office of the Commissioner of Insurance says only the owner, insurer or lender can access it, but you can ask the seller to order one. The NAIC suggests asking agents how you can find out a home's claims history before you buy, because it might affect your premium. Get quotes before your inspection contingency ends so there's time to react to surprises.

If you're having trouble finding coverage

The Triple-I suggests asking the agent who insures your car, or who previously insured the home, which improvements would make it more insurable. Your state insurance department can generally provide a list of insurers that write in your area.

If the private market declines, your state may have a FAIR Plan. The Triple-I says FAIR Plans may require improvements such as upgrading electrical wiring, heating or plumbing. FAIR Plan policies can cost more and often cover only the dwelling. Shop the private market first.

How to compare home insurance quotes for an older home

Have this ready:

  • Year built, square footage and construction type (frame or masonry)
  • Dates and details of electrical, plumbing, heating and roof updates
  • Inspection and contractor reports
  • A list of special features and your rebuilding cost estimate

Ask each insurer:

  • "Which policy form is this, and does it pay replacement cost, modified replacement cost or actual cash value?"
  • "Is ordinance or law coverage included, and what's the limit?"
  • "Are there any wiring, plumbing or heating conditions I must fix, and by when?"
  • "Which updates would earn a discount?"

Compare like for like. The NAIC advises requesting the same coverages and limits from every insurer and getting quotes in writing. A cheaper quote on a narrower policy form, or without ordinance or law coverage, isn't the same product.

The bottom line

Older houses are insurable, but they reward preparation. Know the age and condition of the wiring, plumbing, heating and roof, and document every update. Insure the cost to rebuild, and ask directly about ordinance or law coverage and how original features would be handled. If past claims are also part of the picture, see how to get homeowners insurance after a claim.

Frequently asked questions

Is home insurance more expensive for older homes?

Often, yes. The NAIC says premiums are often higher for older homes and homes in poor condition. Updates can help: the NAIC notes that some insurers offer discounts for updating electrical or plumbing systems or getting a new roof.

Can you get homeowners insurance with knob and tube wiring?

It depends on the insurer and the home's condition. The Insurance Information Institute says homes with old electrical systems are considered higher risk because of the greater chance of fire. Get a licensed electrician's written evaluation, ask each insurer what it requires, and shop more than one company.

What is ordinance or law coverage, and do I need it for an old house?

It's an endorsement that helps pay the extra cost of rebuilding to current building codes after a covered loss. The Insurance Information Institute says standard policies, even guaranteed replacement cost policies, generally won't pay that extra expense. Because codes may have changed a lot since an older home was built, it's worth asking about.

What is a modified replacement cost policy?

The Insurance Information Institute explains that it repairs older homes with today's standard materials and methods rather than matching original features, such as plaster walls. The NAIC also describes a Modified Coverage Form for older homes where the cost to rebuild is greater than the market value.

How do I insure a 100-year-old house?

Start with a professional inspection and an electrician's and plumber's review. Gather records of any updates, estimate the cost to rebuild (not the market value) and ask insurers about ordinance or law coverage and how they'd settle claims on original features. Then compare quotes for the same coverage.

Sources

  1. A Consumer's Guide to Home Insurance (National Association of Insurance Commissioners, 2022)
  2. How much homeowners insurance do I need? (Insurance Information Institute (Triple-I))
  3. What if I can't get coverage? (Insurance Information Institute (Triple-I))
  4. Repairing Aluminum Wiring (Publication 516) (U.S. Consumer Product Safety Commission, June 2011)
  5. Weatherization Program Notice 22-7: Table of Issues (U.S. Department of Energy, June 2022)
  6. For Your Protection: Get a Home Inspection (HUD-92564-CN) (U.S. Department of Housing and Urban Development)
  7. Florida Statutes § 627.7011 (2026) (The Florida Senate)
  8. Frequently Asked Questions About C.L.U.E. (updated May 19, 2026) (Wisconsin Office of the Commissioner of Insurance)
  9. What are FAIR Plans and how might they provide insurance coverage? (Insurance Information Institute (Triple-I))

Sources were accessed on October 6, 2026. Linked pages may have changed since then.

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