Cheapest Home Insurance for Older Homes (2024)

The cheapest insurance company for older homes is Westfield, with average annual premiums of $1,038.

Alani Asis
Written byAlani Asis
Alani Asis
Alani Asis
  • 3 years of content writing

  • Bylines with leading financial publications

Alani is a freelance writer specializing in personal finance. She aims to make complex topics more approachable through fun, digestible content.

Featured in

media logomedia logomedia logo
Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

media logomedia logomedia logomedia logo

Updated July 1, 2024

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Older homes typically cost more to insure than new homes because of their increased claims risk. According to research by Insurify, the average annual premium for a $300,000 policy for a home built in the 1940s is $2,385 — slightly higher than the national average of $2,377.

Comparing home insurance quotes is essential to finding coverage for your older home. Here’s what you need to know about getting cheaper insurance for an older home, and what to do if you can’t find coverage.

Quick Facts
  • Westfield, Grange, and Hastings Mutual offer some of the cheapest insurance for older homes, all with average annual premiums of less than $1,400.

  • An HO-8 policy is designed to cover older homes.

  • Your home’s age, condition, and replacement cost are factors that affect your insurance premium.[1]

Cheapest homeowners insurance for older homes

Home insurance costs for older homes are typically higher than for newer homes. The table below illustrates the cheapest and best homeowners insurance companies for a $300,000 policy.

Insurance CompanyIQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
Average Annual PremiumBest For
WestfieldN/A$1,083Cheapest rates
Amica4.1$1,591Value for older homes
Chubb3.9$2,566High-value homes
Erie 3.7$1,392Company reputation
USAA4.0$2,048Military personnel
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Cheapest rates: Westfield

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
NR
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$79/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$93/mo

Westfield is the cheapest home insurance company for older homes. Its $300,000 policy is 55% cheaper than the national average cost.

The company offers several types of home insurance products, including replacement cost coverage, equipment breakdown coverage, and flood insurance. It also has an AM Best financial strength rating of A (Excellent), indicating a solid ability to pay its claims.

Pros
  • Coverage for high-value homes available

  • Offers service line coverage

Cons
  • Personal insurance available in only 10 states

  • No weekend customer service hours

Best insurer for the most value for older homes: Amica

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.3/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
862
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$152/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$234/mo

Amica is the top pick for home insurance with the most value. The company ranked second on J.D. Power’s claims and customer service satisfaction surveys and offers competitive prices. As a bonus, Amica lets you earn dividends on your homeowners policy in most states, which you can use as income or to pay your premiums.

Pros
  • Quotes available online

  • AM Best financial strength rating of A+ (Superior)

Cons
  • Not available in Alaska or Hawaii

  • Fewer discounts than some competitors

Best insurer for high-value homes: Chubb

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
6.5/10
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$150/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$234/mo

Chubb is the best policy for older homes with a high replacement value. This insurer boasts a laundry list of coverages to increase your protection, including extended replacement cost coverage, law and ordinance coverage, and home risk consulting.

Pros
  • Offers unique perks, like identity theft protection and property management services

  • Above-average J.D. Power claims satisfaction rating

Cons
  • Quotes not available online

  • Slightly higher-than-average premiums

Best insurer for company reputation: Erie

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.0/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
870
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$112/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$167/mo

Consider Erie if you prioritize having a good relationship with your insurance company. Erie received first place in J.D. Power’s claims and customer satisfaction surveys. So, you can expect quality customer service from this home insurer.

In addition to traditional home insurance, Erie offers condo insurance, renters insurance, flood insurance, and personal valuables insurance.

Pros
  • AM Best financial strength rating of A+ (Superior)

  • Standard policy includes guaranteed replacement cost coverage

Cons
  • Available in only 12 states and Washington, D.C.

  • Quotes not available online

Best insurer for military personnel: USAA

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.4/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$137/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$190/mo

If you own an older home and are an active-duty service member, veteran, or immediate family member, check out USAA. This home insurance company offers a comprehensive list of coverages for your high-value home needs, such as guaranteed replacement cost coverage, risk consulting, and home systems protection. USAA is also cheaper than the average policy for older homes.

Pros
  • Unique coverages

  • High J.D. Power customer satisfaction scores

Cons
  • Only available to military-affiliated members

  • You’ll need an account to get a quote

How to save on homeowners insurance for an older home

Homeowners insurance for older homes typically results in higher premiums. Fortunately, you can lower your costs in several ways, including:[2]

  • Seek discounts. Save money on your policy by checking your insurer’s website for home insurance discounts you qualify for.

  • Fortify your home. Qualify for a discount by installing a security system or safety features, weatherproofing your home, and reinforcing its structure.

  • Bundle policies. Take advantage of your company’s multi-policy discount for better auto and home insurance rates.

  • Improve your credit score. Insurers use your credit-based insurance score to determine premiums. People with higher credit scores have a lower risk of filing claims, so they pay lower rates.

  • Compare home insurance quotes. Find the best deal on the coverages you need using an online quote-comparison tool to see how different insurance companies stack up.

Find Coverage for Your Older Home

Compare quotes from the top 100+ insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Why older homes cost more to insure

Old homes have a higher risk of a covered loss. So, insurance companies evaluate the age of your home to determine your likelihood of filing a claim. For example, aluminum electrical wiring, commonly installed in homes built in the 1960s and ’70s, poses a higher fire risk, increasing insurance premiums.

Here’s another example: Homes with older roofs have an increased risk of damage due to severe weather or natural disasters.[3] So, you can expect your insurance rates to rise with an aging roof.

Read More: What Does Roof Insurance Cover?

Read More: What Does Roof Insurance Cover?

Factors that affect insurance rates for older homes

Many factors influence the cost of your home insurance policy, including:

  • illustration card https://a.storyblok.com/f/162273/150x150/b045612c49/house-rental-96x96-orange_045-value.svg

    Roof

    Older roofs increase the risk of significant damage, so insurers charge more to account for the risk.

  • illustration card https://a.storyblok.com/f/162273/150x150/e6c9ee6008/recovery-and-repair-96x96-blue_023-repair.svg

    Construction materials

    More expensive building materials increase your home’s replacement and insurance costs.

  • illustration card https://a.storyblok.com/f/162273/150x150/453d0b710d/types-of-houses-96x96-yellow_025-mansion.svg

    Architectural features

    Homes with unique architectural features, commonly found in historical homes, require specialized materials and craftsmanship to replace. This results in an uptick in your home insurance replacement cost and premiums.

  • illustration card https://a.storyblok.com/f/162273/150x150/39020b8d21/renewable-energy-96x96-green_001-renewable-energy.svg

    Electrical system

    An outdated electrical system increases fire risk, so insurers increase premiums to offset this risk.

  • illustration card https://a.storyblok.com/f/162273/150x150/543689d6cb/renewable-energy-96x96-orange_013-faucet.svg

    Plumbing

    An outdated plumbing system increases water damage. As a result, your insurance premium increases.

  • illustration card https://a.storyblok.com/f/162273/150x150/ffc91664ed/types-of-houses-96x96-blue_030-mansion.svg

    Historic status

    Homes with historic designation may have rebuilding restrictions to preserve authenticity.[4] Building with materials not commonly found today increases your home’s replacement value and premiums.

  • illustration card https://a.storyblok.com/f/162273/150x150/79b027a857/house-rental-96x96-yellow_050-budget.svg

    Replacement costs

    If you own a high-value home, you’ll likely have to pay more for replacement coverage.

  • illustration card https://a.storyblok.com/f/162273/150x150/d2a2cefe8c/insurify-icons-auto-green-96x96_024-home.svg

    Specialized labor costs

    Homes with unique architectural features, historical significance, or custom decorative elements may require specialized workmanship, which tends to cost more and leads to higher rates.

How to find insurance for an older home

Follow these steps to find insurance for an older home:

  1. Comparison shop. The best way to find the coverage you need at the lowest price is by comparison shopping. Research companies that offer your required coverage. It may help to look into insurers that specialize in insurance for older houses. In addition, review each company’s customer service ratings, financial strength ratings, and user-generated reviews to gauge its reputation.

  2. Get quotes. Once you’ve decided on companies to compare, get quotes from at least three. An online quote-comparison tool can expedite the process. You can also speak to an independent insurance agent who can provide objective recommendations based on your needs. Ensure the coverages are similar across the board for the most accurate comparison.

  3. Purchase a policy. After finding the best rates, purchase your policy. You may have to speak to an insurance representative over the phone to finalize your coverage.

What to do if you can’t find coverage for an older home

If a standard HO-3 insurance policy doesn’t cover your older home, an HO-8 policy might. HO-8 policies cover older homes where the replacement cost exceeds the market value. This policy covers dwellings, other structures, and personal property.

One downside is that your coverage limit equals your home’s actual cash value (ACV), which is its replacement cost minus depreciation.[5] So, if you have an older home, depreciation likely affects how much coverage you get.

Important Information

Companies may refuse to insure a high-risk older home. If you can’t get insurance from the traditional marketplace, look into your state’s Fair Access to Insurance Requirements (FAIR) plan. This program offers coverage for high-risk homes. Plan requirements vary by state. But in order to qualify, you must provide proof of denial by multiple insurers and have no outstanding tax liens or insurance claims.

Types of insurance for older homes

Various types of coverage for older homes are available. Understanding each type can help you choose one that fits your needs.

HO-3

An HO-3 policy, also known as special form coverage, is the most common type of homeowners insurance. It provides insurance coverage for your dwelling and other structures on an open peril basis, meaning it covers all risks besides ones explicitly excluded.

While it provides broad protection for your dwelling, HO-3 only covers the 16 named perils up to the ACV of your personal property.

HO-8

HO-8 insurance, a modified form policy, is for older homes not qualifying for a standard policy. It only covers damages caused by named perils to your dwelling, other structures, and personal property up to its ACV.

One thing to note is that this coverage includes the cost of dwelling repairs and replacement using modern materials and methods, making your insurance more feasible and less costly.

Shop for Home Insurance Online

See personalized quotes from Insurify partners in minutes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Water backup coverage

Outdated plumbing systems in an older home increase the risk of water backup due to inefficiency or deteriorated condition. Standard HO-3 policies exclude water backup, so you must purchase an endorsement or policy add-on.

This coverage pays for water damage to your sewer, drainage, or sump pump systems. Since it increases your policy’s coverage, you’ll have to pay an extra premium.

Service line coverage

Like plumbing systems, utility lines (lines that run from your street to your home, such as pipes, cables, and wires) are more prone to damage in an older home. Adding service line coverage protects buried service lines from damage. But it typically comes as an endorsement, so you’ll likely pay an extra premium.

Replacement cost coverage

Replacement cost coverage replaces your damaged property with materials of “like kind and quality” without deducting depreciation. Standard insurance policies cover the replacement cost for your dwelling and other structures but not your home’s contents.

While it offers more protection than an actual cash value (ACV) policy, replacement cost coverage comes at a higher price. In addition, replacement cost coverage may not cover the entire cost of rebuilding your home. For example, increased material and labor costs or changing building codes may mean your home’s replacement value exceeds your policy’s coverage limit.

To protect yourself, you can consider purchasing an extended replacement cost policy — with this policy, an insurer will pay a certain percentage over your coverage limit to rebuild your home. But this type of policy may not be available for older homes.

Ordinance or law coverage

The cost to rebuild or repair an older home to comply with current building codes is likely higher than its replacement value. This endorsement provides additional coverage to meet updated building codes, ordinances, and laws, lowering out-of-pocket costs. Since it’s an endorsement, you have to pay an increased premium.

Scheduled personal property coverage

Standard home insurance policies offer protection for personal property on a named peril basis up to its ACV. But you may need more insurance if your older home has high-value items like jewelry, antiques, art, and collectibles. This is where scheduled personal property coverage comes in handy. This add-on typically covers your expensive personal belongings up to their replacement cost with broader peril coverage.

Since it’s an endorsement, expect your premiums to increase. Plus, it may require a yearly appraisal to ensure your coverage stays up to date.[6]

Home insurance for older homes FAQs

Finding home insurance for an older home can be challenging. Below is some additional information to help you with your search.

  • Why does homeowners insurance cost more for older homes?

    Homeowners insurance is more expensive for older homes because of its increased risk level. One of the best ways to lower your cost is by comparing quotes from insurers that offer the coverages you need.

  • What company has the cheapest insurance for older homes?

    Westfield offers the cheapest price for older homes, at $1,038 per year. Your rates will vary based on your ZIP code, home age, and replacement cost.

  • What is an HO-8 insurance policy?

    An HO-8 policy insures older homes excluded from a standard HO-3 insurance policy. It covers up to the ACV of your dwelling and personal property on a named-peril basis.

  • What does insurance for older homes cover?

    Insurance for older homes offers dwelling coverage, other structures coverage, and personal property coverage. It also offers personal liability and, in most cases, loss of use coverage. The extent of your coverage depends on the type of policy and insurance company.

  • Can home insurers deny coverage based on a home’s age?

    Yes. Older homes tend to have more issues that increase their risk levels. If you can’t get coverage through a traditional insurer, consider looking at your state’s FAIR plans. This state-managed program helps homeowners secure insurance for high-risk homes.

Sources

  1. National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
  2. Insurance Information Institute. "How to save money on your homeowners insurance."
  3. Realtor.com. "Busted: Common Problems in Older Homes—Broken Down by Decade."
  4. Nolo.com. "FAQs About Buying a Home That's a Designated Historic Property."
  5. Insurance Information Institute. "Are there different types of policies?."
  6. The Associated Press. "What is scheduled personal property coverage?."
Alani Asis
Alani Asis

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 7+ years in content creation and management

  • 5+ years in insurance and personal finance content

Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.

Featured in

media logomedia logomedia logomedia logo

Compare Home Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate