Key considerations for heritage home insurance

Own a heritage home? Heritage homes come in all shapes, forms, sizes, designs, etc. Did you know older homes may require specialized insurance because they’re considered higher risk than a standard, modern home? 

Home prices in Canada are projected to go down in 2024 and 2025, so, if you’re looking to buy a property in the next short while—especially a heritage one—read this guide on how to insure a heritage home. 

Each province has its own definition of what a heritage home is. In Ontario, it’s the Ontario Heritage Act  that gives municipalities the ability to designate a property as being of provincial significance – i.e, worthy of a heritage label.  

When buying a home or looking at a listed property to determine if it’s a heritage property, you’ll want to ask a real estate lawyer or the salesperson to check with the local municipal register. There should be a list of properties within the area that are deemed as having cultural value.  

Buying a heritage home is like acquiring a piece of provincial history. However, keep in mind that as heritage homes tend to be older, they may not meet modern safety and building standards. You’ll likely need to confirm that all the home’s systems are in good working order and have its structural integrity assessed.  

Generally, yes. Since older homes tend to have higher repair and maintenance costs, insurers will generally rate them higher. There’s also the safety perspective to be considered; older homes may have outdated systems (plumbing, electrical, heating, and so on) which could pose a higher chance of causing damages due to an unexpected malfunction.

Heritage homes also may need specific materials when being repaired, which can be more expensive and aren’t as easy to find. There may also be parameters that are required to be met in order to keep the integrity of the home’s “look.” This can increase the time period it takes to do repairs. 

And since owning a heritage home requires a certain level of diligence and careful maintenance, it takes a special type of homeowner to live there. The house may also need non-standard materials and special expertise if repairs are required, which costs more, so this will be reflected in the insurance rates paid to cover a heritage home.  

Heritage homes can be complex to insure and may not always qualify for standard home insurance. . Every insurer handles heritage homes differently, and some may even refuse to insure them altogether. As a result, some heritage homes may require high-risk home insurance.In certain cases, insurers will send out agents or professional appraisers to do an inspection of your heritage home—which is a step sometimes also required for standard home insurance, except for homes with older roofs.  This inspection will help determine if a policy can be issued and, if so, what your premiums will be. 

It’s wise to work with a broker when looking for insurance for a heritage home. They can help you shop around and compare options to find the right coverage at the best price. A broker can also recommend ways you can mitigate risks and potentially lower your premiums, such as updating electrical wiring, plumbing, and heating to improve the home’s safety.   

While we do recommend updates and renovations to keep premiums down—especially updating older home systems—in some cases you’ll have restrictions on what or how you can renovate. In Ontario, you’ll have to give your municipality 60 days’ written notice before renovating your property. In some cases, you’ll even require written municipal consent to make changes and you could encounter resistance if your renovations will affect the home’s heritage attributes.  

Insurance can be confusing, and it can be even more complicated when insuring a heritage home. Not every insurance company will cover a heritage home, and you could end up in a specialty market. You may also need to take some extra steps to protect your home and investment, such as doing renovations, documenting certain features, and more. 

Here are some tips to keep in mind when insuring a heritage home: 

Many of Mitch’s brokers are trained in insuring heritage homes, so they’ll be able to recommend coverage options for you, offer advice, and help you find the right policy for the best price. 

Give us a call and request a free, no-obligation home insurance quote today!