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Insurance on Older Homes is all about Replacement Cost

The replacement cost value used to insure a home in Albany, NY is very important.  Insurance on older homes is all about replacement cost.

Insurance on Older HomesThe replacement cost value is important for every home in Albany and cities similar to Albany, (and when I say Albany, I also mean Troy, Schenectady, Saratoga, Rensselaer, etc, the Capital Region), it is especially important because “cities similar to Albany” means Old Cities.

Cities that are filled with single and multi-family homes built between 1890 and 1930.  In addition to the majority of the homes in cities like Albany being old, , most are located in harsh weather regions, which means they get pounded on a yearly basis by cold, wet, windy winters and hot, humid, rainy summers.

Why is the Replacement Cost So Important?

Insuring an older home is distinctly different from insuring a home built 50 years ago.

The materials are different (and some cases irreplaceable), the building method is different, and the building features are different (i.e. crown molding, intricate cabinetry, etc).

This means when determining the replacement cost of an older home you cannot apply the same assumptions as you would to a newer home.

If you try to apply newer home replacement assumptions to an older home the coverage value is going to be low.  A low replacement value can mean reimbursement on an Actual Cash Value basis (Think depreciation and penalties) which ultimately means you as the homeowner are REALLY PISSED OFF if there is a loss!

How Do I Ensure Replacement Cost Accuracy?

Work with an independent insurance agent, like The Murray Group, who lives in your community (for those of you in Albany / Capital Region, you can Email Me Here) or at least in the same region of the Country. I visit every structure I insure that’s within a 30-45 minute drive.  Since I only write insurance New York State I’ve become very familiar with most of the communities on the eastern half of the state.

At The Murray Group we take the time to understand what is going on at your home, rental property, apartment building, etc.  Depend more from your insurance agent to ensure you are insured properly.

Thank you.

P.S. If you were so inclined The Murray Group would love to be your insurance agent.  You can inquire about receiving an insurance proposal by Clicking Here.

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Disclaimer: This article is for informational purposely only. There is no legal advice being suggested or proffered and the author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.

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